HomeMy WebLinkAboutPresentation_Workshop_7/13/2023 (2)Village of Tequesta Council July 13, 2023Rommi Mitchell, Senior Benefits & Risk Management ConsultantPresented by:Market UpdateEmployee Benefits –Workshop
Current Benefits Program Overview 2 Employee Assistance ProgramTerm Disability-Voluntary LongVoluntary Life and AD&DBasic Life and AD&DVisionDentalMedicalcoverages:insured insurance
-includes the following fullyComprehensive Employee Benefits package that •
Current Medical Benefit Overview 3 government poolFMIT is unique in that it only underwrites a •Large group: more than 100 (standard market >50)Small group: less than 100 (standard
market <50)FMIT and other carriers pool claims in segments•utilization to be solely used in renewal calculations Around 500 employees would allow the Village’s own others to determine
premium ratingemployees & therefore its claims are blended with Traditionally the Village’s plan has had less than 100 •
Municipal Entity Comparison 4 Pocket Maximums, and Copays -of-Deductibles, OutMedical plans tend to be structured with lower pocket costs for members-of-Sector entities offer richer
benefits, meaning less outBenefit designs vary widely, but generally, Public •Term Disability-LongTerm Disability and -Paid Short-Some also offer Employerenhance recruitment efforts
and solidify retentionMost cities offer comparable packages as a way to •
Municipal Entity Comparison 5 Employee + Family: 65.56%Employee + Children: 60.86%Employee + Spouse (or +1): 61.33%Employee Only: 95.56% (5/9 at 100%)the following medical Employer
contribution averages:municipal clients in Palm Beach County provided for Sharing also varies, however a survey of -Cost•
Health Insurance Market Trend Source: Kaiser Family Foundation Annual Benefits Survey 2022 20%2022: -201743% 2022: -2012283% 2019: -1999 Large FirmsSmall Firms 2022-Average Annual Premiums
for Covered Workers with Family Coverage, 1999 202220212020201920182017201620152014201320122011201020092008200720062005200420032002200120001999$25,000$20,000$15,000$10,000$5,000$0 rates
significantly higher than inflationMedical and Pharmacy costs continue to increase at 6
Health Insurance Trend Factors 3 years and countingutilization over the last severely impacted new complexity, having 19 added a -COVID 7
What to Expect in 2023 8 EAP renewal TBD•Vision renewal offer of 0%•Dental insurance renewal offer of 5%•in a 41% increaseFlorida Blue (prior carrier) offered a quote that would result
only one medical carrier submitted a proposalGehring Group performed a market bid via RFP and •This was reduced from their initial offer of 7.8%medical insurance premiumsFMIT has
verbally indicated a 6.3% increase to •
Discussion Questions & Answers 9