HomeMy WebLinkAboutCity of Tamarac Resolution R-2020-111 Temp. Reso. #13516
October 20, 2020
Page 1 of 4
CITY OF TAMARAC, FLORIDA
RESOLUTION NO. R-2020 111
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
TAMARAC, FLORIDA, APPROVING THE RENEWAL OF THE
AGREEMENT WITH CIGNA, AUTHORIZING THE
APPROPRIATE CITY OFFICIALS TO EXECUTE THE
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; 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 approved the renewal of an agreement with
CIGNA to provide Administrative Services for Claims and Flexible Spending Accounts,
and Employee Assistance Plan, and Telehealth Connection Program via Resolution R-
2019-116 at its October 23, 2019 meeting, a copy of such resolution is on file with the City
Clerk; and
WHEREAS, in February 2020, the City's benefit consultant Lockton Companies,
and City staff were preparing to market Employee Benefits for City of Tamarac employees,
to include Administrative Services for Claims and Flexible Spending Accounts, and an
Employee Assistance Plan coverage for Plan Year 2021; and
WHEREAS, as a result of preparing to market Employee Benefits, to include
Administrative Services for Claims and Flexible Spending Accounts, and an Employee
Assistance Plan, Lockton Companies presented the City with a renewal proposal from
CIGNA which included an alternative to marketing Employee Benefits; and
Temp. Reso. #13516
October 20, 2020
Page 2 of 4
WHEREAS, CIGNA agreed to maintain a 24-month Administrative Services and
Flexible Spending Administration rate hold effective January 1, 2021 with a 3% rate
escalator in 2023, and agreed to continue to provide $75,000 in annual wellness funds,
including the rollover of unused funds from CY 2019; and
WHEREAS, after detailed evaluation of the alternative renewal proposal from
CIGNA, and with the assistance of Lockton Companies, City staff has determined that
CIGNA's proposal provides the City with a cost-effective renewal that is favorable to the
City of Tamarac; 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 remain substantially
the same with respect to cost sharing, the waiver program, the premiums, and certain
modifications to the High Deductible Health Plan with Health Reimbursement Account;
and
WHEREAS, that 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
Temp. Reso. #13516
October 20, 2020
Page 3 of 4
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, 2021; and (2) that the Health
Insurance Program with the changes as described in the Resolution and back-up
documents are implemented effective January 1, 2021; 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.
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 renewal of the agreement with Cigna is approved and the
appropriate City officials are authorized to execute the agreement 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 remain
substantially the same with certain modifications to the Cigna program-wide prescription
and specialty drug programs.
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
Temp. Reso. #13516
October 20, 2020
Page 4 of 4
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.
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 8: This Resolution shall become effective immediately upon
adoption.
PASSED, ADOPTED AND APPROVED this (>2)PL day of Olar06a' , 2020.
/ /eiti e
M V
HELLE J. GO Z
MAYOR
ATTEST:
IFE' •HNS
CITY CLE K RECORD OF COMMISSION VOTE:
MAYOR GOMEZ
DIST 1: V/M BOLTON 6
DIST 2: COMM.GELIN
DIST 3: COMM. FISHMAN S
DIST 4: COMM. PLACKO
I HEREBY CERTIFY that I
Have approved this
RESOLUTION as to form.
SAMUEL S. GORE
CITY ATTORNEY
TR 13516
Exhibit A
2021 CLAIMS PROJECTIONS
HDHP Medical Rx HMO Medical Rx
Manual PEPY $11,828.45 $3,338.23 $12,338.07 $3,529.53
Experience to Manual Factor 85.81% 85.81% 85.81% 85.81%
Projected PEPY Claim Cost $10,150 $2,865 $10,588 $3,029
Projected Enrollment 190 191
Total Projected claims $1,928,564.40 $544,280.82 $2,022,242.08 $578,499.08
Total Adjusted Annual Claims** $5,073,586.38 Minimum Attachment Point $5,986,831.93
2021 ADMINISTRATIVE SERVICES FEES
ASO Fee $21.40 $21.40
Network Access Fees $18.42 $18.42
HRA Fee $4.50 $0.00
Total PEPM $44.32 $39.82
Per Plan ASO Fees $101,049.60 $91,267.44
Combined Annual ASO Fees $192,317.04
2021 INDVIDUAL STOP LOSS PREMIUM
Individual Stop Loss PEPM $90.70 $90.70
Annual Stop Loss Per Plan $206,796.00 $207,884.40
Total Stop Loss $414,680.40
2021 AGGREGATE STOP LOSS PREMIUM
Aggregate Stop Loss PEPM $15.64 $15.64
Annual Aggregate Stop Loss
Per Plan $35,659.20 $35,846.88
Total Aggregate Stop Loss $71,506.08
Annual Combined Stop Loss $486,186.48
Annual Fixed Costs ** $678,503.52
* Total adjusted annual claims and minimum attachment points are based on projections
provided by our consultant partners at Lockton Companies.
**Annual fixed costs do not represent the cost of administration of Employee Assistance
Program (EAP) administration and the administration of Flexible Spending Accounts (FSA) by
Cigna. Estimated administration costs for EAP and FSA are $18,000 for CY 2021