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Home My WebLink AboutCity of Tamarac Resolution R-2019-116 Temp. Reso. 13354 October 16, 2019 Page 1 of 5 CITY OF TAMARAC, FLORIDA RESOLUTION NO. R-2019- I A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA, APPROVING THE RENEWAL OF AN AGREEMENT WITH CIGNA, PROVIDING FOR ADMINISTRATIVE SERVICES FOR CLAIMS AND FLEXIBLE SPENDING PLANS AND THE EMPLOYEE ASSISTANCE PROGRAM, THE TELEHEALTH CONNECTION PROGRAM AND THE MOTIVATEME VALUE PROGRAM, AND TO MAKE CERTAIN MODIFICATIONS TO THE HEALTH INSURANCE PROGRAM FOR EMPLOYEES AND RETIREES; AUTHORIZING THE APPROPRIATE CITY OFFICIALS TO EXECUTE THE AGREEMENT; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City's health insurance was re-structured as a partially self-insured program effective January 1, 2013; and WHEREAS, the City Commission awarded a three (3) year contract to CIGNA with two (2) one-year renewals, to provide Administrative Services for Claims and Flexible Spending Accounts, and an Employee Assistance Program via Resolution R-2012-126 at its November 14, 2012 meeting, a copy of such resolution is on file with the City Clerk; and WHEREAS, the City Commission awarded a two (2) year contract with CIGNA to provide Administrative Services for Claims and Flexible Spending Accounts, and Employee Assistance Program, and Telehealth Connection Program via Resolution R-2018-142 at its October 24, 2018 meeting, a copy of such resolution is on file with the City Clerk; and Temp. Reso. 13354 October 16, 2019 Page 2 of 5 WHEREAS, in the fall of 2018, the City's benefit consultant Lockton Companies competitively marketed the Administrative Services for Claims and Flexible Spending Accounts, and an Employee Assistance Program coverage for Plan Year 2019; and WHEREAS, as a result of the marketing of the Administrative Services for Claims and Flexible Spending Accounts, and an Employee Assistance Program, Lockton Companies presented the City with five (5) proposals for coverage; and WHEREAS, after detailed evaluation of the proposals, and with the assistance of Lockton Companies, City staff has determined that CIGNA's proposal provides the City with the most cost-effective program which includes a level of reinsurance protection that is prudent and appropriate; and WHEREAS, available funds exist in the appropriate Governmental Funds which are in the approved FY 2020 Budget to fund the City's Health Insurance Program; and WHEREAS, the City desires to renew their contract with CIGNA to provide Administrative Services for Claims and Flexible Spending Accounts, and the Employee Assistance Program, Telehealth Connection Program, and the MotivateMe Value Program, and WHEREAS, the City's Health Insurance Program design will be modified to restructure the employee cost share for medical insurance and the plans offered will be modified from a three-plan model to a two-plan model with the implementation of a High Deductible Health Plan (HDHP) accompanied by a Health Reimbursement Arrangement (HRA); and Temp. Reso. 13354 October 16, 2019 Page 3 of 5 111 WHEREAS, conditions under which retirees may continue in the City's health plan until Medicare eligibility, include that they must continue to pay the full health insurance premium, and that the retiree's ability to opt into the City's health insurance plan as a retiree may occur only once either (1) upon retirement at separation of service or (2) at some later time after retirement and separation, subject to open enrollment or qualifying life change; and WHEREAS, available funds exist in the appropriate Governmental Funds which are in the approved FY2020 Budget to fund the City's Health Insurance Program; and WHEREAS, it is the recommendation of the City Manager, the Director of Human Resources, and the Director of Financial Services that the City (1) renew the executed agreement with CIGNA for the provision of Administrative Services for Claims and Flexible Spending Plans, and the Employee Assistance Program, Telehealth Connection Program and the MotivateMe Value Program as negotiated, and as amended and approved by the City Manager and the City Attorney effective January 1, 2020; and (2) that the Health Insurance Program with the changes as described in the Resolution and back-up documents are implemented effective January 1, 2020; and WHEREAS, the City Commission has deemed it to be in the best interest of the health, safety and welfare of citizens and residents of the City of Tamarac to renew and execute such Agreements and approve the changes to the Health Insurance Program. Temp. Reso. 13354 October 16, 2019 Page 4 of 5 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION111 OF THE CITY OF TAMARAC, FLORIDA: SECTION 1: That the foregoing "WHEREAS" clauses are hereby ratified and confirmed as being true and correct and are hereby made a specific part of this Resolution. All exhibits attached hereto are incorporated herein and made a specific part of this Resolution. SECTION 2: That the City Commission hereby approves the agreement with CIGNA and the appropriate City officials are further authorized to renew the executed contract documents with CIGNA, attached as Exhibit 1, for the provision of Administrative Services for Claims and Flexible Spending Plans, the Employee Assistance Program, the Telehealth Connection Program and the MotivateMe Value Program. SECTION 3: That the City's Health Insurance Program design will be modified to restructure the employee cost share for medical insurance and the plan structure will be modified from a three-plan model to a two-plan model with the implementation of a High Deductible Health Plan (HDHP) accompanied by a Health Reimbursement Arrangement (HRA); SECTION 4: That conditions under which retirees may continue in the City's health plan include that they must continue to pay the full health insurance premium, and that the retiree's ability to opt into the City's health insurance plan as a retiree may occur only once either (1) upon retirement at separation of service or (2) at some later time after retirement and separation, subject to open enrollment or qualifying life change. Temp. Reso. 13354 October 16, 2019 Page 5 of 5 SECTION 5: That all resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of such conflict. SECTION 6: That if any clause, section, or other part or application of this Resolution is held by any court of competent jurisdiction to be unconstitutional or invalid, in part or application, it shall not affect the validity of the remaining portions or applications of this Resolution. SECTION 7: This Resolution shall become effective immediately upon adoption. PASSED, ADOPTED AND APPROVED this day of Oat , 2019. /../( .121- "9) MICHELLE J. GOMEZ MAYOR ATTEST: LILLIAN PABON, CMC INTERIM CITY CLERK RECORD OF COMMISSION VOTE: MAYOR GOMEZ DIST 1: COMM. BOLTON DIST 2: COMM. GELIN DIST 3: COMM. FISHMAN DIST 4: V/M PLACKO �,k I HEREBY CERTIFY THAT I HAVE APPROVED THIS RESOLUTION AS TO FORM AMUEL S. GORENJ CITY ATTORNEY Exhibit 1 City of Tamarac Renewal Summary CLAIMS PROJECTIONS (ASSUMED 50%) HDHP HMO/OAP From 1/1/2020 through 12/31/2020 Medical Rx Medical Rx Manual PEPY $ 11,484 $ 3,338 $ 12,338 $ 3,530 Experience to Manual Factor 85.81% 85.81% 85.81% 85.81% 85.81% Projected PEPY Claim Cost $ 26,335.78 $9,855 $2,865 $10,588 $3,029 Projected Lives-In Current Medical Plans 381 24 357 Enrollment%from Current 692% -43% Projected Medical Lives 190 191 Projected Enrollment 190 190 191 191 Total Projected claims $5,017,413.84 $1,872,391.86 $544,280.82 $2,022,242.08 $ 578,499.08 Multiple Offering Adjustment 1.0000 1.0000 1.0000 1.0000 1.0000 Benefit Change 1.0000 1.0000 1.0000 1.0000 1.0000 Benefit Change 1.0000 1.0000 1.0000 1.0000 1.0000 Benefit Change 1.0000 1.0000 1.0000 1.0000 1.0000 Total Adjusted Annual Claims $5,017,413.84 $1,872,391.86 $544,280.82 $2,022,242.08 $ 578,499.08 Minimum Attachment Point $5,920,548.33 $2,209,422.39 I $642,251.36 $2,386,245.65 I $682,628.92 ASO Fees HDHP HMO/OAP TOTAL Administrative Service Fees $ 21.40 $ 21.40 $ 97,840.80 Network Access Fees $ 18.42 $ 18.42 $ 84,216.24 HRA Fee $ 4.50 $ - $ 10,260.00 HSA Fee $ - $ - $ - Total PEPM ASO Fee $ 44.32 $ 39.82 Employees 190 191 Proposed Annual Administrative&Access Fees $ 101,049.60 $ 91,267.44 $ 192,317.04 Current Annual Administrative&Access Fees $ 186,629.04 Change from Current Administrative&Access Fees 3.05% Proposed Annual Adminstrative&Access Fees $ 182,057.04 Change from Proposed Renewal 5.64% Individual Stop Loss HDHP HMO/OAP TOTAL Proposed $ 145.50 $ 145.50 $ 665,226.00 Lives $ 190.00 $ 191.00 Proposed Annual Individual Stop Loss $ 331,740.00 $ 333,486.00 $665,226.00 *Pooling Point $ 150,000.00 *Contract Type 12/36 *Rx Accumulation Y *Commissions(Net or%) Net Aggregate Stop Loss HDHP HMO/OAP TOTAL Proposed $ 15.73 $ 15.73 $ 71,917.56 Lives 190 191 Proposed Annual Aggregate Stop Loss $ 35,864.40 $ 36,053.16 $ 71,917.56 *Pooling Point $ 150,000.00 *Corridor Amount 118% *Minimum Attachment Percentage 100% *Contract Type Paid in 12 *Rx Accumulation Y *Commissions(Net or%) Net Current Total Annual Stop Loss $661,797.00 Proposed Total Annual Stop Loss $737,143.56 %Change 11.39% Total Fixed Cost-Current $ 848,426.04 Total Fixed Cost-Proposed $ 929,460.60 % Change 9.6%