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HomeMy WebLinkAboutCity of Tamarac Resolution R-2020-113 Temp. Reso. #13518 October 20, 2020 Page 1 of 4 CITY OF TAMARAC, FLORIDA RESOLUTION NO. R-2020 - 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 A DENTAL INSURANCE PROGRAM, AND TO MAKE CERTAIN MODIFICATIONS TO THE PROGRAM FOR EMPLOYEES AND RETIREES; PROVIDING FOR THE CONTINUATION OF THE EXISTING COST ALLOCATION OF THE DENTAL INSURANCE PREMIUM BETWEEN THE CITY AND EMPLOYEES; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City's dental insurance was awarded to CIGNA effective January 1, 2018 via Resolution R-2018-144 at its October 24, 2018 meeting, a copy of such resolution is on file with the City Clerk; and WHEREAS, the City's contract with CIGNA is scheduled to expire on December 31, 2020; and WHEREAS, in February 2020, the City's staff worked with the City's benefit consultant Lockton Companies to negotiate a renewal for Dental Insurance with CIGNA; and WHEREAS, CIGNA has guaranteed the renewal rate for a period of two (2) years effective January 1, 2021 with an aggregate renewal rate of 5.25% comprising a 5% premium increase to the Dental PPO plan and 5.5% premium increase to the Dental HMO plan; and WHEREAS, after evaluation of the renewal proposal from CIGNA by the Benefits Manager and Assistant Director of Human Resources, it was determined that CIGNA continues to provide the most comprehensive dental insurance program; and WHEREAS, it is the recommendation of the City Manager and the Director of Human Resources that the City renew the dental insurance program provided by CIGNA, Temp. Reso. #13518 October 20, 2020 Page 2 of 4 subject to any revisions consistent with the benefit plan as may be negotiated by and between City staff and CIGNA and as approved by the City Manager and the City Attorney for two (2) plan years effective January 1, 2021; and WHEREAS, this renewal will result in an overall premium increase of approximately 5.25% from the 2020 premiums, guaranteed for two (2) years as described in Exhibit #1, attached hereto and made a part hereof; and WHEREAS, available funds exist in the appropriate Governmental Funds which are in the approved FY2021 Budget; 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 the dental insurance contract with CIGNA for dental insurance for City of Tamarac employees, as outlined in Exhibit#1, attached hereto and made a part hereof, subject to any revisions consistent with the benefit plan 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 for a two year period. 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 hereby authorized to execute the CIGNA agreement for dental insurance coverage for City of Tamarac employees, dependents and retirees as outlined in Exhibit#1, subject to any revisions consistent with the benefit plan as may be negotiated by and between City staff and CIGNA and as approved by the City Manager and the City Attorney for two (2) years effective January 1, 2021. Temp. Reso. #13518 October 20, 2020 Page 3 of 4 SECTION 3: That the appropriate City officials are hereby authorized to continue the existing cost allocation of the dental insurance premium between the City and employees. SECTION 4: That all resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of such conflict. SECTION 5: 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 6: This Resolution shall become effective immediately upon adoption. PASSED, ADOPTED AND APPROVED this '-'day of Q C;T0602-- , 2020. it/L-46 V, MICHELLE J. Glib MEZ MAYOR ATTEST: J NIFER HNSO CITY CLERK RECORD OF COMMISSION VOTE: MAYOR GOMEZ DIST 1: V/M BOLTON DIST 2: COMM.GELIN ' DIST 3: COMM. FISHMAN DIST 4: COMM. PLACKO ,c6 I HEREBY CERTIFY that I Have approved this RESOLUTION as to form. Temp. Reso. #13518 October 20, 2020 Page 4 of 4 Pr b /J 2 ZCj SAMUEL S. GOREN CITY ATTORNEY TR 13518 Exhibit 1 Cigna Healthcare Financial Exhibit for: CITY OF TAMARAC Effective Date:January 01, 2021 PROPOSAL TERMS AND CONDITIONS for Dental General Terms of this Proposal Cigna HealthCare is pleased to present this Proposal for a Fully Insured Non- Participating group Dental benefit plan (the "Plan") sponsored by CITY OF TAMARAC. This proposal is valid for 60 days from its original date of release, 04/02/2020. Any revisions or updates to this proposal will not renew this valid timeframe unless expressly communicated by Cigna HealthCare. The information contained in this Proposal by Cigna HealthCare is proprietary and highly confidential. It is being provided with the understanding that it will not be used by the employer, its representatives or consultants for any purpose other than the evaluation of the Proposal. Under no circumstances is any of the information contained herein (including excerpts, summaries, extracts, and evaluations thereof)to be used, disseminated, disclosed or otherwise communicated to any person or entity other than the employer, its representatives and consultants, and their respective employees who are directly involved in the evaluation process. Proposal Caveats Cigna HealthCare may revise or withdraw this Proposal if: 1. there is a change to the effective date of the quote. 2. the Plan benefits are different than shown or benefit modifications are requested. 3. participation is below 86%. This will be based on the total eligible employees, identified as 414. 4. enrollment increases or decreases by 10%or more, by product or for the total account, from the enrollment assumptions used in establishing the rates and/or fees set forth herein 5. it is not the exclusive provider of Dental for all of CITY OF TAMARAC's employees in all worksites. 6. there is a change in law, regulation, tax rates, or the application of any of these that affects Cigna HealthCare's costs A. Scope and Application of this Proposal Unless otherwise indicated,this Proposal: 1. assumes the quoted Dental rates are valid only when Dental is packaged and sold alongside Cigna Medical and/or CGI. 2. assumes employer contributions match the previous year's sold quote. 3. assumes the premium rates proposed by Cigna Healthcare are subject to final Underwriting approval and may be changed due to differences in selection of benefits, changes in census data, or any other changes in risk determined by Cigna Healthcare. 4. includes rates which are subject to regulatory approval. If, as of their proposed effective date, regulatory approval is not obtained, Cigna shall use rates consistent with its then currently approved rates and the foregoing rates shall be effective automatically upon approval. 5. assumes that Cigna HealthCare's standard insurance policy form approved for use in the applicable state by the state insurance regulator will be issued. Because the insurance policy and certificate terms require regulatory approval, there is very little flexibility to change the provisions. The provisions of the insurance policy and certificate will supersede the Proposal in the event of a conflict. 6. includes Dental rates which are guaranteed for a period of 24 months while the contract remains in force. The guarantee is valid only if medical and/or CGI renews with dental in subsequent period. 7. assumes the rates contain sufficient commission load for Dental of 0%. 8. assumes only a passive DPPO plan may be offered to TX or MS employees due to regulatory requirements. 9. assumes the plan will be implemented using Cigna's standard policy provisions, limitations, and contract language as reflected in Cigna's summary plan description unless specific modifications have been approved and rated appropriately.These standards are summarized in the Underwriting benefit summary. Any benefit modifications must be communicated in writing from Underwriting. 10. contains rates which include costs for Health Insurance Assessment fees (PPACA)for 2020. Rates for 2021 and later do not include Health Insurance Assessment fees (PPACA). 11. Cigna's Dental and/or Vision products are "excepted benefits" and not subject to Essential Health Benefit requirements. 12. Cigna HealthCare may have an agreement with your benefit advisor, under which the benefit advisor may be paid for providing marketplace intelligence or for the performance of administrative services. The qualification for and amount of this payment may be based upon overall business growth and/or retention levels. Any such payment is funded through Cigna HealthCare's general overhead. 13. The benefit advisor may qualify for incentive payment (monetary or non-monetary) from Cigna HealthCare. For example, the benefit advisor may receive payment based upon new sales, new customer growth or retention.This incentive payment is funded from Cigna HealthCare's general overhead. 14. Cigna HealthCare sponsors programs to inform benefit advisors about Cigna HealthCare's plan coverage and services (including producer advisory councils). The cost of these events is funded through Cigna HealthCare's general overhead.