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Home My WebLink AboutDocumentation_Regular_Tab 12_08/11/2011 ' � VILLAGE OF TEQUESTA AGENDA ITEM TRANSMITTAL FORM . 1. VILLAGE COUNCIL MEETING: Meeting Date: Meeting Type: Regular Ordinance #: .. �._ - ?::�r °� �t 8/11/11 Consent Agenda: No Resolution #: C�i;�c �ere ±o �nter text. Originating Department: Human Resources 2. AGENDA ITEM TITLE: (Wording form the SUBJECT line of your staff report) Approval of Health insurance renewal with Cigna Insurance and Dental renewal with MetLife Insurance 3. BUDGET / FINANCIAL IMPACT: Account #: Various Amount of this item: Per schedules $815,805.99 Current Budgeted Amount Available: Amount Remaining after item: � �- ._ _ <' Budget Transfer Required: �. ��o�e ar� Appropriate Fund Balance: �'r �� 'e�� 4. EXECUTIVE SUMMARY OF MAJOR ISSUES: (This is a snap shot description of the agenda item) Request for renewal of a one-year contract for health insurance with Cigna Health and MetLife Dental for FY2011/2012 and authorizing the village manager to execute the contracts on behalf of the village. The costs will be allocated across the various departments. 5. APPROVALS: � '-� Dept. Head: Finance Director� proved �..., No Financial Impact Attorney: (for legal sufficiency) �U ,c��'�� Yes ❑ No ❑ Village Manager: SUBMIT FOR COUNCIL DISCUSSION: � Routing Sheet Process � 1. Send ALL completed forms to APPROVE ITEM: ❑ Finance for review ONE WEEK prior � to agenda items due into Clerk's Office. • DENY ITEM: � 2. Finance sends Routing Sheet to Form amended 08/26/08 Clerk by deadline. 3. Clerk formulates agenda and sends to Manager for review / approval. McWilliams, Lori From: Reid, Merlene Sent: Thursday, August 04, 2011 7:44 AM To: McWilliams, Lori Subject: FW: ANOTHER AGENDA ITEM -HEALTH &DENTAL INSURANCE Attorney's review for circulation. Merlene Merlene Reid, M.S.,SPHR Human Resources Director Village of Tequesta 345 Tequesta Drive Tequesta, FL 33469-3062 Tel:(561) 768-0415 Fax:(561)768-0697 From: Keith Davis rmailto:Keith @corbettandwhite.com] Sent: Wednesday, August 03, 20115:17 PM To: Reid, Merlene Subject: RE: ANOTHER AGENDA ITEM Merlene: Reviewed and approved for legal sufficiency. Keith W. Davis, Esquire Y-V Tel: (561) 586-7116 Fax: (561) 586-9611 Email: keith(a4corbettandwhite.com From: Reid, Merlene rmailto:mreid9tequesta.org1 Sent: Wednesday, August 03, 20113:32 PM To: Forsythe, Jody; Keith Davis Cc: McWilliams, Lori Subject: ANOTHER AGENDA ITEM Jody, Original has been sent over to you for your signature. Keith—another one for your review for legal sufficiency. Thanks Merlene 1 . • • Memo To: Michael R Couzzo, Jr., Village Manager From: Merlene Reid, HR Director Date: August 3, 2011 Re: Health and Dental Insurance 2011/12 After Cigna's proposed increase of 23% to maintain the current plan, negotiations through our Brokers resulted in a 7% reduction. Due to the fact that effective 10/1/2011 employees will start contributing to the individual plan for the 1 st time, and will be making increased contributions towards their dependents; the overall effect to the Village would be 8%. After 3 meetings beiween May-August, and taking into consideration the time constraints facing them, the Benefits Committee decided to take a 2 year longer term look at the benefits and made the following recommendations: Medical: 1. For FY2011/12, renew the current Cigna plan for an overall 8.0% increase to the Village of $58,234 and a 51.06% increase of $84,761 to the employees. The committee chose not to solicit bids this year as the previous year's bid was higher than the current carrier's and unfortunately we experienced a number of large claims over the last year. There have also been a number of plan changes over the past 3 years and a period of stability is recommended. 2. The process of moving towards a Health Reimbursement Account (HRA) should be started early in FY2011/12, with training of employees and administrators in January 2012. Significant savings is expected from this potential change; however successful implementation is dependent on the education process which is a lengthy one. Dental: Renew the existing PPO plan with MetLife at a 7% increase which translates to an annual premium change of $1,510.28 to the employees and $1,958.88 to the Village. The 3 unions, the PBA, IAFF and the CWA were represented on the Committee and there are no changes being effected that require the Village to reopen negotiations. Based on the Committee's thorough review and analysis along with the experience data provided by our brokers, as well as their guidance and advice, the Human Resources department recommends the approval of the selected plans. Village of Tequesta GEHRING,�GROUP Dental Renewal Evaluation Effective Date: October 1, 2011 CURRENT NEGOTIATED RENEWAL SCHEDULE OF BENEFITS MetLife Metlife Dental PPO Plan Dental PPO Plan Plan Basics ln Netwark Non Network In Network Non Metwork Calendar Year Maximum $1,500 $1,500 Deductibles Single $25 $50 $25 $50 Family Maximum $75 $150 $75 $150 Deductible Waived for Preventative Svcs Yes No Yes No Benefits Preventative 100% 100% 100% 100% Basic 100% 80% 100% 80% Major 60% SO% 60% 50% Orthodontia 50% SO% 50% 50% Service Information Out of Network Benefits Payable Level 90% UCR 90% UCR New Hires Only New Hires Only Benefits Waiting Period 12 months Ortho 12 months Ortho Orthodontia Lifetime Maximum $1,000 $1,000 Endodontics/Periodontics Payable Level Basic Basic Rate Guarantee Expires 10/1/2009 12 months Premium per Month Employee Village Employee Village Employee 42 $0.00 $30.22 $0.00 $32.34 Employee + Family 35 $51.37 $30.22 $54.97 $32.34 Monthly Premium $1,797.95 $2,326.94 $1,923.81 $2,490.18 Annual Premium $21,575.40 $27,923.28 $23,085.68 $29,882.16 $ Increase N/A $1,510.28 $1,958.88 % Increase N/A 7.0% 7.0% Village of Tequesta GEHRING,�GROUP nPOFE55ionn� SEFViCES Cost Analysis - Medical and Vision Insurance Effective Date: October 1, 2011 Police Employees Total Employer Employee Total Employer Employee Employee Only $481.40 $481.40 $0.00 $558.42 $558.42 $0.00 Employee+Spouse i $1,029.61 $892.56 $137.05 1 $1,19435 $1,035.37 $158.98 Employee + Children 3 $890.10 $787.92 $102.18 3 $1,032.52 $914.00 $118.52 Employee + Family 2 $1,443.39 $1,202.89 $240.50 2 $1,674.33 $1,395.35 $278.98 MONTHLY PREMIUM 14 $10,437.89 $9,513.30 S9Z4•59 14 $12,107.95 $11,035.45 $1,072.50 ANNUAL PREMIUM $125,254.68 $114,159.60 $11,095.08 $145,295.43 $132,425.43 $12,870.00 All Other Employees Total Employer Employee Total Employer Employee Employee Only 29 5481.40 $481.40 $0.00 29 $558.42 $508.42 $50.00 Employee+Spouse 4 $1,029.61 $892.56 $137.05 4 $1,194.35 $935.37 $258.98 Employee+Children E $890.10 $787.92 $102.18 6 $1,032.52 $814.00 $218.52 Employee+Family 24 $1,443.39 $1,202.89 $240.50 24 $1,674.33 $1,295.35 $378.98 MONTHLY PREMIUM 63 $58,061.00 $51,127.72 $6,933Z8 63 $67,350.76 $54,458Z0 $12,892.56 ANNUAL PREMIUM $696,732.00 $613,532.64 $83,199.36 $808,209.12 $653,498.40 $154,710.72 Retirees & COBRA Total Emp{oyer Retiree/COBRA To�l fmpbyer Retiree/COBRA Employee Only 3 $481.40 $0.00 $481.40 3 $558.42 $0.00 $558.42 Employee + Spouse 3 $1,029.61 $0.00 $1,029.61 3 $1,194.35 $0.00 $1,19435 Employee + Children 0 $890.10 $0.00 $890.10 0 $1,032.52 $0.00 $1,032.52 Employee + Family 1 $1,443.39 $0.00 $1,443.39 1 $1,674.33 $0.00 $1,67433 MONTHLY PREMIUM 7 $5,976.42 $0.00 $5,976.42 7 $6,932.65 $0.00 $6,932.65 ANNUAL PREMIUM $71,717.04 $0.00 $71,717.04 $83,191.77 $0.00 $83,191.77 TOTAL HEALTH PREMIUM 84 Total Employer Empbyee 84 Total Employer Employee MONTHLY PREMIUM $74,475.31 $60,641.02 $13,834.29 $86,39136 $65,493.65 $20,897.71 ANNUAL PREMIUM $893,703.72 $727,69214 $166,011.48 $1,036,69632 $785,923.83 $250,772.49 $ INCREASE n/a n/a n/a $142,992.60 $58,231.59 $84,761.01 °� INCREASE n/a n/a n/a 16.00% 8.00� 51.06% • Total Employer Employee Total Employer Employee Employee Only 13 $5.63 $0.00 $5.63 13 $5.77 $0.00 $5.77 Employee+Spouse 4 $11.25 $0.00 $11.25 4 $11.53 $0.00 $11.53 Employee+Children 6 $11.36 $0.00 $11.36 6 $11.64 $0.00 $11.64 Employee + Family 6 $17.90 $0.00 $17.90 6 $18.35 $0.00 $18.35 MONTHLY PREMIUM 29 $293.75 $0.00 $293.75 29 $301.07 $0.00 $301.07 ANNUAL PREMIUM $3,525.00 $0.00 $3,525.00 $3,612.84 $0.00 $3,612.84 TOTAL DENTAI PRENFtUM Total Emplayer Employee Tatal Employer Employee MONTHLY PREMIUM $293.75 $0.00 $293.75 $301.07 $0.00 $301.07 ANNUAL PREMIUM $3,525.00 $0.00 $3,525.00 $3,612.84 $0.00 $3,612.84 $ INCREASE n/a n/a n/a $87.84 $0.00 $87.84 % INCREASE n/a n/a n/a 2.49% 0.00� 2.49% TOTAL PREMIUM MONTHLY PREMIUM $74,769.06 $60,641.02 $14,128.04 $86,692.43 $65,493.65 $21,198.78 ANNUAL PREMIUM $897,228.72 $727,692.24 $169,536.48 $1,040,309.16 $785,923.83 $254,385.33 $ INCREASE n/a n/a n/a $143,080.44 $58,231.59 $84,848.85 % INCREASE n/a n/a n/a 15.95% 8.00% 50.05% Village Responsibility 81.10% 75.55% G:\Gehring GrouplGlents\Tequesta, Village o�Employee Benefts12011 Files\072711 - Tequesha Medical Renewal Evaluation 2011-2012 (NegotialedJ.xlsx