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HomeMy WebLinkAboutDocumentation_Regular_Tab 15_8/8/2024 Agenda Item #15. Regular Council STAFF MEMO Y Meeting: Regular Council - Aug 08 2024 Staff Contact: Merlene Reid, Director, H R & Risk Department: H R Management Consider Approval of Health, Dental and Life Insurance and EAP 2024/25 Renewals The Village currently offers an Employee Benefits package that includes fully-insured Medical, Dental, Basic Life and AD&D insurance coverages, along with a robust Employee Assistance Program (EAP). Additional insurance coverages are facilitated at the employee's expense, to include Vision, Voluntary Life & AD&D, and Voluntary Long-Term Disability. At the July 1, 2024 Council Workshop, our Insurance Brokers, the Gehring Group reviewed the Benefits renewal landscape and advised that health insurance was a major challenge facing employers in 2024. They advised further that with the Village's Medical claims currently running 118% of premium, due mostly to large claims affecting a few dependents, this would be a particularly tough renewal year for the Village. The Benefits Committee along with the brokers, decided skip a market bid for the medical plan after a dismal 2023 response, and to shop the Dental, Vision, Life & Disability markets after receiving proposals with substantial increases. In anticipation of a difficult 2024 year, the Village budgeted a 15% increase for employee benefits, with the final employer numbers coming in at 15.6% ($285,005.85), broken down as summarized below and explained in greater detail in Appendix A: • Medical (Employer/Employee): overall 16.0% increase, a total of $315,598.56 to retain the current plans with Florida Municipal Insurance Trust (FMIT/United Health Care) • Dental (Employer/Employee): -2.4% decrease, a total of $2,015.40, with carrier change from The Standard to Solstice • Basic Life and AD&D insurance coverages(Employer) 21.9% increase, a total of $5,317.05, with carrier change to The Hartford from The Standard who proposed a 25.5% increase to renew with them • EAP(Employer) : No increase While the Village does not contribute to the Vision plan, we were able to secure a 2.6% decrease for participating employees, with carrier change from The Standard to EyeMed. This document and any attachments may be reproduced upon request in an alternative format by completing our Accessibility Feedback Form, sending an e-mail to the Village Clerk or calling 561- 768-0443. BUDGET • - • Page 149 of 265 Agenda Item #15. BUDGET AMOUNT Refer to AMOUNT AVAILABLE Refer EXPENDITURE AMOUNT: N/A Cost Summary to above memo FUNDING SOURCES: Refer to above memo IS THIS A PIGGYBACK: ❑ Yes 0 N/A DID YOU OBTAIN 3 QUOTES? ❑ Yes 0 N/A COMMENTS/EXPLANATION ON SELECTIONRefer to above memo POTENTIAL MOTION - • - • HR is requesting that the Benefits Committee's recommendation submitted to Village Manager Allen, and outlined above, be accepted for FY 2024/25, with health insurance renewed with FMIT/UHC, Dental be moved to Solstice, Basic Life/AD&D be moved to The Hartford, and the Employee Assistance Program remaining with New Directions. 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