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Home My WebLink AboutDocumentation_Regular_Tab 18_09/13/2012 VILLAGE CLERK'S OFFICE AGENDA ITEM TRANSMITTAL FORM Meeting Date: Meeting Type: Regular Ordinance #: 9/13/2012 Consent Agenda: No Resolution #: Originating Department: Human Resources AGENDA ITEM TITLE: (Wording form the SUBJECT line of your staff report) Approval of Dental insurance renewal with MetLife Insurance and Health Insurance renewal with Cigna Insurance, initially with a dual plan offering until negotiations have been completed. BUDGET / FINANCIAL IMPACT: Account #: Various Amount of this item: Per Schedules $935,792 Current Budgeted Amount Available: Amount Remaining after item: Budget Transfer Required: Choose an Appropriate Fund Balance: Choose an item. i�t:�� 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 FY2012/2013 and authorizing the village manager to execute the contracts on behalf of the Village. The costs will be allocated across the various departments. APPROVALS: SIGNAT R :. Department Head Finance Director ;,�, � Reviewed for Financial Sufficiency 0 '` / No Financial Impact ❑ � � Attorney: (for legal sufficiency) See attached Village Manager: � � Submit for Council Discussion: [� � �- -----__`,� Approve Item: ❑ Deny Item: � SPECIAL INSTRUCTIONS FOR CLERK: (if you wish to have agreements signed, be sure to include the number of copies you want signed and place "Sign Here" sticker on them) Form Amended: 10/20/11 . • • Memo To: Michael R Couzzo, Jr., Village Man er From: Merlene Reid, HR Director � � „�' Date: August 30, 2012 Re: Health and Dental Insurance 2012/13 The past year's experience was not a good one as our health insurance carriers experienced a loss ratio of 105%. Additionally, attempts to solicit bids from other major carriers did not materialize as these organizations refused to quote after reviewing our medical questionnaires. On 7/25/2012 the Benefits Committee made the following recommendations to the Village Manager: 1. A Health Savings Account (HSA) plan be implemented for employees, along with savings account funding of $600/$1,200 for individuals and family respectively. 2. Eligible employees be given the opportunity to cash out some of their sick time to help to meet the high deductible difference between the Village's contribution to their HSA sa�ings account and their potential out-of-pocket m�imum. The Village Council accepted recommendation 1 above and the PBA and the CWA unions were invited to negotiate the offer. Despite starting the renewal process four months earlier than customary (1/10/2012), an agreement has not been reached with the PBA and the CWA unions. While negotiations have been ongoing with the PBA who met with their members on 8/30/2012 and made a counter-offer to the Village on 9/5/2012, to date the CWA has not come to the table despite our numerous requests. The Village is however obliged to maintain current benefits in the event that a settlement is not reached with the unions. The Gehring Group has confirmed that Cigna can temporarily operate a dual plan and move the CWA and/or PBA employees over to the HSA during the 2012/13 plan year, depending on the outcome of the negotiations. Recommendations It is recommended that the Council approves the IAFF and Non-Unionized employees moving to the HSA plan, while negotiations continue with the PBA and the CWA unions. Should the Village not reach an agreement with the CWA and the PBA, the total annual cost of maintaining these dual programs is $902,37537, an increase of $142,435.89, in addition to the amount required to fund the savings accounts for the 34 IAFF and General employees (See Appendix 1). In respect of the dental it is recommended that the Village renews the existing PPO plan with MetLife at a 5% increase which translates to a total annual premium increase of $1,212.12 to the employees and $1,594.08 to the Village (See Appendix 2). APf ��ix I VIIlageofTequesta �7f E��RING �GROUP �s�aati.F AAO.EAS/ . �o�s��,�h.� Medical Insurence Renewal Evaluation Effective Date: October 1, 2012 CURRENT RENEWAL (CWA $ POL�CE EMPLOYEES) HSA PLAN (IAFF & GENERAL EMPIOYEES) � � � � � � �. .�. �. ,p�an Basics In Network Out of Network Plan 8asics , In Ne[work Ou[ of Network Plan Basia !n Network Out of Ne[work Lifetime Maximum Unlimited Lifetime Maximum Unlimited Lifetime Maximum Unlimited Unlimited Contrect Year Deductible (CYD) Contract Year Deductible (CYD) Contract Year Deducti6le (CYD� .Z;;Ereg ze ; y� :.•�...:: �� Single 5500 Single $500 Single �.:`�00 $3,000 Family $1,500 Family $1,500 Family ; ?oo $6,000 Out of Pocket CYM Excludes Copays Out of Pocket CYM Exdudes Copays Out of Pocket CVM Includes aIl cost share ; 3.Y:(70 $6,000 Single $S00 Single $500 Single 5�,p�30 $12,000 Famity $1,500 Family $1,500 Family . Coinsurence 09U Coinsurance 0% Coiosurance 20Y 40% Phv:iclan Serviees PAvslcian Services Phvsicia� Services Primary Care Physkian $20 Primary Care Physician $20 Primary Care Physician .� �:'+i� aker Cti U 40% after CYD Specialist $30/$45 Specialist $30/$45 Specialist zD`:�akerCYD 40%afterCYD Pre-Natal $30/$45 Pre-Natal $30/S45 Pre-Natal Z(�"f,akerCYU 40%afterCYD Preventive Benefits No Charge Preventive Benefits No Charge Preventive Benefits No Charge CYD Chiropractic Services $30 /$45; 20 visits CYM Chiroproc[ic Services $30 /$45; 20 visits CYM Chiropractic Services z0% aker [vD 40%after CY� Laboratory Services No Charge Laboratory Services No Charge Wboratory Servlces Ln°io aker CYD 40%after CYD Physical Therapy $30 /$45; 20 visits CYM Physical Therapy $30 /$45; 20 visitr CYM Physical Therapy 70% aker CY�� 404o after CYD Urgent Care Pacility $50 Urgent Care Facility $50 Urgent Care Faciliry �,�cr� after CVD 40°� after CYD �`�� INNEN✓ORK Nosoltal5ervkes HosoiWiServices �� IN NETWORK InpatientHospital CYD InpatientHospital CYD InpatientHospital Lo%aherwD 40%akerCVD COVERAGE ONLY COVERAGE ONLY Outpatient Hospital CYD Outpatient Hospital CYD Outpatient Hospital ?0'Y after CYD 40% after CVD Advanced Imaging 5250 Advanced Imaging 5250 Advanced Imaging zo% aher CvD 40% after CVD Emergency Room $200 Emergency Room $200 Emergency Room 2o?a aker CYD 409G after CYD Physician Services CVD Physician Services CYD Physician Services ?o'.o after CYD 40% aker CYD Ambulance CYD Ambulance CVD Ambulance ��` � after [vD 40% after CYD Outpatient Therepy $30 /$45; 20 visits CYM Outpatient Therapy $30 /$45; 20 visits CYM Outpatient Therapy 'Uw� after CYU 4096 after CYD MeMal and Nervous Servkes UnNml[ed MeMal and Nervous Servkes UnlimiteC Mental and Nervous Servias Unlim7ted UnNmited Inpatient Hospital CYD Inpatient Hospital CYD Inpatient Hospital _, _;f!er CYD 40% aher CYD Ou[Ratient Services $0 Outpatient Services j 3o Outpatient Servites .. .:� after CYD 40°6 after CVD �;bstarrce A6use Servkes Unfimi[ed Substance Abuse Services Unlimlted SubsWnce Abuse Services Unlimlted Unlimited Inpatient Hospital CYD Inpatient Hospital CYD Inpatient Hospital .. _��: after CVD 4096 after CYD Outpatient Hospital $0 Outpatient Hospital ;30 Outpatient Hospital .. �•s after CYD 40% after CYD pham�e�y pla� Pharmaw Plan Generic S15 Generic $]5 Generic 525 aker CYD Preferred Brand $40 Preferred Brand $40 Preferred Brend `>d0 after CYD Non Preterred Brand $60 Non Preferred Brand $60 Non Preferred Brend S?o after CVD Not Covered Specialty Injectibles N/A Specialty Injectibles N/A Specialiy Injectibles Tier Copay after CYD Mail Order Copay 2.Sx Mail Order Copay 2.Sx Mail Order Copay 2x aker CYD Premlum per Month � Premium per Month Premium per Month General Employees Em loyee Cos[ Village Cost CWA Bar oinin Unit Em loyee Cost Villo e Cost IAFF & Generol Employees Em !o ee Cos[ Villa e Cost Employee 32 SS0.00 $508.42 Employee 16 SS0.00 $642.45 Empbyee 15 $0.00 $539.11 Employee+Spouse S $258.98 $935.37 Emptoyee+Spouse 4 $297•14 51,183.87 Employee+Spouse 2 $152.24 5995.83 Employee+Child(ren� 8 $218,53 $814.00 Employee+Child(ren) 6 $246.97 $1,033.37 Employee+Child�renj 2 5113.52 $879.66 Famil 16 $378.98 51,29535 Famil 2 5445.94 $1,630.26 Famil 15 $267.09 51,340.37 Police Emplo es Em loyee Cost Village Cost Police Employees Em loyee Cost Vlllage Cost Employee 7 $0.00 $558.42 Employee 7 $0.00 $692.45 Employee+Spouse 1 $158.95 $1,03537 Employee+Spouse 1 $197.14 $1,283.87 Emplayee+Child(ren) 2 $118.53 5914.00 Employee+Child(ren) 2 $146.97 $1,133.37 Family 6 SZ78.98 51,39535 famil 6 $345.94 51,730.26 Retirees & COBRA Portici ants Em loyee Cost Village Cost Re[irees & COBRA Participants Emplo ee Cos[ Villo e Cost Employee 3 $558.42 $0.00 Employee 3 $692.45 50.0� Employee+Spouse � $1,19435 $0.00 Employee+Spouse 0 $1,481.01 $D.00 Employee+Child(ren) D $1,032.52 $0.00 Employee+Child(ren) 0 $1,280.34 $0.00 Famil 0 51,674.33 50.00 Famil 0 $2,076.20 $0.00 Monthly Drcmium $14,451.91 563,328.29 Monthly Premlum 59,��33 $43,254.74 Monthly Premium 54.537.82 531,94331 Annual Premlum 5173,422.92 5759,939.48 Annual Premium 5308,075.96 5514,D55.88 Annual Premium $54,453.87 5383,318.49 ToUI Monthly Premium $14,051.93 $63,32819 Total Monthly Premium Total Monthly Premium $13,544.15 $75,197.95 ToWI Annual Premium 51�3,422.92 $759,939.48 Total Annual Premium Total Annual Premium $162,529.83 5902,37537 Total $ Increase N/A N/A Total $ Increase Total $ Increase -510,893.09 5142,435.89 otal%Increase N/A N/A ToWI%Increase Total561nCrease •6.3% 18.7% . ., r .,u� _ r.r, Administr�non re� G:1GaMmp Gro�p`cfertnlTequeafe, V�pe oM1Empbyee Berclas17D12 Fikn�08�212- Tpueste Mstliul Nenewel EwWNUn 2012-2013 (DUPL OPTIOf�.�bs ��r�`�1IX 2� Village of Tequesta GEHRING �GROUP Dental Renewal Evaluation / ""°`�� °"``` ��`"��`�� Effective Date: October 1, 2012 CURRENT RENEWAL WEGOT IATECt RENEWAL e � -- - — Plan Basics !n Network lYon Network /n Network Non Network In Network Non Network Calendar Year Maximum $1,500 $1,500 $1,500 Deductibles Single $25 $50 $25 $50 $25 $50 Family Maximum $75 $150 $75 $150 $75 $150 Deductible Waived for Preventative Svcs Yes No Yes No Yes No Benefits Preventative 100% 100% 100% 100% 100% 100% Basic 1009� 80�0 100% 809'0 1009�0 80% Major 60% 509� 60� 509'0 609�0 50�'0 Orthodontia 50% 50% 50% 50% 509� 50% Service Information Out of Network 8enefits Payable Level 90th percentile 90th percentile 90th percentile New Hires Only New Hires Only New Hires Only Benefits Waiting Period 12 months Ortho 12 months Ortho 12 months Ortho Orthodontia Lifetime Maximum $1,000 $1,000 $1,000 Endodontics/Periodontics Payable Level Basic Basic Basic Rate Guarantee Expires 9/30/2011 12 months 12 months Premium pe� Month Employ�e V+llage �mploye�� Village Employee Vitlage Employee 45 $0.00 $32.34 $0.00 $35.64 $0.00 $33.96 Employee+Family 37 $54.97 $32.34 $60.56 $35.64 $57.70 $33.96 Monthly Premium $2,033.89 $2,651.88 $2,240.72 $2,922.48 $2,134.90 $2,784.72 Annual Premium $24,4Q6.68 $31,822.56 $26,888.64 $35,069.76 $25,618.80 $33,416.64 $ Increase N/A $2,4$1.96 $3,247.20 $1,212.12 $1,594.08 % Increase N/A 30.2% 10.2% 5.0% 5.0% Reid, Merlene From: Keith Davis [Keith(�corbettandwhite.com] Sent: Friday, August 31, 2012 12:09 PM To: Reid, Merlene Subject: RE: Agenda Item - Health & Dental Renewal 2012-12 Approved for legal sufficiency. Keith W. Davis, Esquire ��a��l;� J . � Tel: (561) 586-7116 Fax: (561) 586-9611 Email: keith@corbettandwhite.com From: Reid, Merlene [mailto:mreidCa�teauesta.or41 Sent: Thursday, August 30, 2012 5:13 PM To: Keith Davis Subject: Agenda Item - Health & Dental Renewal 2012-12 Good Afternoon Keith, Please review for legal sufficiency. Thanks Merlene Merlene Reid, MS, SPHR Human Resources Director Village of Tequesta 345 Tequesta Drive Tequesta, FL 33469-0273 Tel: (561 J 768-0415 Fax: (561J 768-0697 -- -- � _ _-- ._._,_ , , IMPORTANT.• The contents of this email and any attachments are confidential. They are intended for the named recipient(s) only. If you have received this email in error, please notify the system manager or the sender immediately and do not disclose the contents fo anyone or make copies fhereof. *•* eSafe scanned this email for viruses, vandals, and malicious content. *** i