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HomeMy WebLinkAboutDocumentation_Regular_Tab 15_8/8/2019Agenda Item #15. � 01 if0 Regular _•i CouncilSTAFF MEMO y ge 1� Itp �' couMr Y Meeting: Regular Council - Aug 08 2019 Staff Contact: Merlene Reid, Assistant Department: HR Manager/Director of Human Resources MUM Approval of the 2019/2020 Insurance Renewals (Health,Dental and Group Life) Based on market and Florida Blue's book of business trends, the Village initially budgeted a 10O/O increase for FY2019/20. In mid -July, Florida Blue submitted increases of 10.4% to retain current benefits for the Traditional plan and 9.06% for the High Deductible Health plan. The Village requested RFPs from all major health insurance providers, however after subsequent rounds of negotiations, Florida Blue returned the lowest premium increases of 3.7% for the Traditional plan and 2.41 % for the HDHP. Our brokers (The Gehring Group) were also asked to conduct RFPs for all benefits lines. Our analysis found that moving our Dental and Life coverages from Metlife and Lincoln Financial respectively to The Standard, results in a total premium increase of only 0.6% or $8,056 to the Village (see Appendix 1). Employees will also profit from further bundling of Vision, Voluntary Life and Long Term Disability with The Standard, insurance coverages that are 100% employee paid. The cost summary outlined in Appendix 1 is based on the number of employees at July 1, 2019 and their current choice of plans (family/individual). At its meeting on July 22, 2019, the Benefits committee reviewed the numbers and alternate proposals provided and unanimously agreed to recommend to the Village Manager that the final numbers be accepted. HR is therefore requesting that the recommendations below be approved: 1. Renew the health insurance with Florida Blue, and 2. Move the Dental insurance and Life Coverages to The Standard. Benefits Committee Members Management Reps. Union Reps Brad Gomberg, I.T. Director Jason Fawcett, IAFF Tatiana Racanati, Assistant Finance Director Ray Korkowski, PBA Merlene Reid, HR Director/Chair Vincent Chesnes, CWA POTENTIAL MOTION- • • Council approval for the 2019/2020 Insurance Renewals (Health,Dental and Group Life) Page 177 of 182 Agenda Item #15. 2019-20 Benefits Executive Summary Page 178 of 182 APPENDIX 1 oyee�en�efifs-Executive Cost Summary Effective Date: October 1, 2019 C GEHRING GROUP° EMPLOYEE BENEFITS I RISK MANAGEMENT COVERAGE CURRENT RENEWAL/RFP AWARD Florida Blue HEALTH TRADITIONAL 3768 Total Florida Blue Employer Employee Total Employer Employee Employee 49 $682.05 $682.05 $0.00 $707.18 $707.18 $0.00 EE+Spouse 3 $1,623.28 $1,387.97 $235.31 $1,683.08 $1,439.11 $243.97 EE+Child(ren) 12 $1,254.97 $1,111.74 $143.23 $1,301.20 $1,152.70 $148.50 EE+Family 32 $2,127.99 $1,766.51 $361.49 $2,206.39 $1,831.59 $374.80 MONTHLY PREMIUM 96 $121,445.61 $107,453.41 $13,992.20 $125,919.94 $111,412.35 $14,507.59 ANNUAL PREMIUM 96 $1,457,347.32 $1,289,440.89 $167,906.43 $1,511,039.28 $1,336,948.20 $174,091.08 $ INCREASE N/A N/A N/A $53,691.96 $47,507.31 $6,184.65 % INCREASE N/A N/A N/A 3.7% 3.7% 3.7% HDHP 5180/81 Total Employer Employee Total Employer Employee Employee 2 $607.22 $607.22 $0.00 $620.73 $620.73 $0.00 EE+Spouse 0 $1,395.05 $1,198.09 $196.96 $1,431.51 $1,228.82 $202.69 EE+Child(ren) 1 $1,078.52 $960.70 $117.83 $1,106.71 $985.22 $121.49 EE+Family 0 $1,828.80 $1,523.41 $305.40 $1,876.60 $1,562.63 $313.97 MONTHLY PREMIUM 3 $2,292.96 $2,175.14 $117.83 $2,348.17 $2,226.68 $121.49 ANNUAL PREMIUM 3 $27,515.52 $26,101.62 $1,413.90 $28,178.04 $26,720.16 $1,457.88 $ INCREASE N/A N/A N/A $662.52 $618.54 $43.98 % INCREASE N/A N/A N/A 2.4% 2.4% The Standard 3.1% DENTAL DENTAL PPO Total MetLife Employer Employee Total Employer Employee Employee 59 $41.02 $41.02 $0.00 $27.98 $27.98 $0.00 EE+Family 40 $110.74 $41.02 $69.72 $94.90 $27.98 $66.92 MONTHLY PREMIUM 99 $6,849.78 $4,060.98 $2,798.80 $5,446.82 $2,770.02 $2,676.80 ANNUAL PREMIUM 99 $82,197.36 $48,731.76 $33,465.60 $65,361.84 $33,240.24 $32,121.60 $ INCREASE N/A N/A N/A -$16,835.52 -$15,491.52 -$1,344.00 % INCREASE N/A N/A N/A -20.5% -31.8% The Standard -4.0% LIFE Lincoln Total Financial Group Employer Employee Total Employer Employee Life Rate $0.340 $0.340 $0.00 $0.139 $0.139 $0.00 AD&D Rate $0.030 $0.030 $0.00 $0.020 $0.020 $0.00 Life Volume $9,806,000 $9,806,000 $9,806,000 $9,806,000 $9,806,000 $9,806,000 AD&DVolume $9299,000 $9,299,000 $9,299,000 $9,299,000 $9,299,000 $9,299,000 MONTHLY PREMIUM $3,613.01 $3,613.01 $0.00 $1,549.01 $1,549.01 $0.00 ANNUAL PREMIUM $43,356.12 $43,356.12 $0.00 $18,598.17 $18,588.17 $0.00 $ INCREASE N/A N/A N/A -$24,767.95 -$24,767.95 $0.00 % INCREASE EMPLOYEE.Directions N/A Total N/A Employer N/A Employee -57.1% Total -57.1% Employer 0.0% Employee EAP Rate 99 $2.61 $2.61 $0.00 $2.77 $2.77 $0.00 MONTHLY PREMIUM $258.39 $258.39 $0.00 $274.23 $274.23 $0.00 ANNUAL PREMIUM $3,100.68 $3,100.68 $0.00 $3,290.76 $3,290.76 $0.00 $ INCREASE N/A N/A N/A $190.08 $190.08 $0.00 % INCREASE N/A N/A N/A 6.1% 6.1% Employer 0.0% Employee SUMMARY TOTAL ANNUAL PREMIUM Total $1,613,517.00 Employer $1,410,731.07 Employee $202,785.93 Total $1,626,458.09 $1,418,787.53 $207,670.56 $ INCREASE N/A N/A N/A $12,941.09 $8,056.46 $4,884.63 % INCREASE N/A N/A N/A 0.8% 0.6% 2.4% Page 179 of 182