HomeMy WebLinkAboutCity of Tamarac Resolution R-2019-117 Temp. Reso. 13355
October 16, 2019
Page 1 of 3
CITY OF TAMARAC, FLORIDA
RESOLUTION NO. R-2019- , I r
A RESOLUTION OF THE CITY COMMISSION OF
THE CITY OF TAMARAC, FLORIDA, APPROVING
THE AGREEMENT WITH CIGNA, PROVIDING
FOR STOP LOSS INSURANCE; 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, in the summer of 2019, the City's benefits consultant Lockton
Companies competitively marketed the Stop Loss Insurance Coverage for Plan
Year 2020; and
WHEREAS, as a result of the marketing of the Stop Loss Insurance
Coverage, Lockton Companies presented the City with a proposal for stop loss
coverage; and
WHEREAS, after detailed evaluation of the proposal, 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 Stop Loss
Insurance; and
Temp. Reso. 13355
October 16, 2019
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WHEREAS, it is the recommendation of the City Manager, the Director of
Human Resources, and the Director of Financial Services that the City execute a
contract with CIGNA, as described in the Proposal attached as Exhibit 1, for Stop
Loss Insurance subject to any revisions as may be negotiated by and between
City staff and CIGNA and as approved by the City Manager and the City Attorney
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 execute such Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION
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 execute
the contract documents with CIGNA, as described in the Proposal, attached as
Exhibit 1 for Stop Loss Insurance, subject to any revisions as may be negotiated
by and between City staff and CIGNA and as approved by the City Manager and
City Attorney.
SECTION 3: That all resolutions or parts of resolutions in conflict
herewith are hereby repealed to the extent of such conflict.
Temp. Reso. 13355
October 16, 2019
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SECTION 4: 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 5: This Resolution shall become effective immediately upon
adoption.
r�l
PASSED, ADOPTED AND APPROVED this day of Qrit0.10-9,;\ , 2019.
/(1C /
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
I HEREBY CERTIFY THAT I HAVE
APPROVED THIS RESOLUTION
AS TO FORM
SAMUEL S. GORED
CITY ATTORNEY
Exhibit 1
TR 13355
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%