HomeMy WebLinkAboutDocumentation_Regular_Tab 05_08/14/2014 VILLAGE CLERK'S OFFICE
AGENDA ITEM TRANSMITTAL FORM
Meeting Date: Meeting Type: Regular Ordinance #:
8/14/2014
Consent Agenda: Yes Resolution #:
Originating Department: Human Resources
AGENDA ITEM TITLE: (Wording form the SUBJECT line of your staff report)
Approval of Health insurance with Blue Cross Blue Shield (BCBS); Dental renewal with Metlife and Group Life
renewal with Lincoln Financial Group
BUDGET / FINANCIAL IMPACT:
Account #: Various Amount of this item: Per Schedules $759,056
Current Budgeted Amount Available: Amount Remaining after item:
Budget Transfer Required: Choo�� ar� Appropriate Fund Balance: Cf�oose an ite�n
±-,
EXECUTIVE SUMMARY OF MAJOR ISSUES: (This is a snap shot description of the agenda item)
Request for approval of a one-year contract (FY2014/2015) for health insurance with BCBS, renewal of
dental insurance with MetLife and group life with Lincoln Financial, and authorizing the village
manager to execute the contracts on behalf of the Village. The costs will be allocated across the
various departments.
APPROVALS: SIGNATURE:
Department Head �
�'
Finance Director � ��
Reviewed for Financial Sufficiency �"� /��,, f
No Financial Impact ❑ � � �
Attorney: (for legal sufficiency) See attac ed
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 Manager
From: Merlene Reid, HR Director �
J
Date: July 31, 2014
Re: Health, Dental and Group Life Insurance 2014/15
The Village's Benefits committee started the renewal process in January 2014 where the
brokers were directed to shop around for the best value for money. Based on the submissions
received, the committee recommended to you that the health insurance plan be moved from
Cigna to Blue Cross Blue Shield (BCBS) effective 10/1/2014. As you've been apprised, this
change will result in projected savings to the Village of $169,008 (a 19.7% decrease from fiscal
year 2013/14). The attached cost evaluation (Appendix 1) is based on the number of
employees at June 18, 2014, their current choice of plans (family/individual), as well as the
assumption that all the employees will elect the traditional over the high deductible plan which
is being made available alongside the traditional plan. There are no changes to the dental and
life insurance premiums, and the total combined cost for all 3 insurance benefits is $759,056.
The Village is currently in negotiations with the 3 unions; however HR and the labor attorneys
are confident that the current agreements allow the Village to make the switch from Cigna to
BCBS as the agreements do not lock any party into having insurance coverage through any
particular provider. The Village will continue to pay insurance premiums for employees in the
bargaining units as provided for in their current collective bargaining agreement and any
negotiated changes will be implemented as necessary.
HR is therefore requesting that the following recommendations be accepted:
1. The health insurance be moved from Cigna to BCBS at a projected annual cost of
$688,717
2. The dental and life insurance be renewed with MetLife and Lincoln Financial Group at
an annual projected cost of $38,515 and $31,824 respectively.
Appendix 1
Village ofTequesta GEHRIN(� ���zIiULTI �
iNi �J iAN! f 11!t']Kefti '��tJS�J�_"n.U:
Medical Insurance RFP Cost Evaluation
Effective Date: October 1, 2014
CURRENT ,�- i'-:-'9;4A "iVE OPTIQN-TRA'JiTi�7FiA! ?LF^..^;
MEDICAL Cigna Florida Blue
CWA Bargaining Unit - Traditionol
Employee 18 $50.00 $687.47 $737.47 $50.00 $44730 $49730
Employee+5pouse 3 $309.96 $1,26734 $1,577.30 $271.57 $912.02 $1,183.59
Employee+Child(ren) 5 $256.53 $1,107.06 $1,363.59 $204.44 $710.61 $915.04
Family 3 $468.43 $1,742.76 $2.211.19 $363.57 $1,188.01 $1,551.58
IAFF & Genera! Employees - T�aditionol
Emplayee 14 $50.00 $523.74 $573.74 $50.00 $447.30 $49730
Employee+5pouse 1 $262.14 5960.15 $1,222.29 $271.57 $912.02 $1,183.59
Employee+Child(ren) 2 $220.90 $836.43 $1,057.32 $204.44 $710.61 $915.04
Famiiy 17 $384.45 $1,327.10 $1,711.55 $363.57 $1,188.01 $1,551.58
Police Employees - Traditionol
Employee 9 $0.00 $573.74 $573.74 $0.00 $49730 $497.30
Employee+5pouse 2 $162.14 $1,060.15 $1,222.29 $171.57 $1,012.02 $1,183.59
Employee+Child(ren) 2 $120.90 $936.43 $1,05732 $104.44 $810.61 $915.04
Family 2 $284.45 51,427.10 $1,711.55 $263.57 $1,288.01 $1,551.58
Retirees & COBRA Participants - Traditional
Employee 0 $573.74 $0.00 $573.74 $49730 $0.00 $49730
Employee+5pouse 0 $1,222.29 $0.00 $1,222.29 $1,183.59 $0.00 $1,183.59
Employee+Child(ren) 0 $1,05732 50.00 $1,057.32 $915.04 $0.00 $915.04
Family o 51,�11.5s So.00 Sl,�ll.ss Sl,ssisa So.00 Sl,sslss
Monthly Premium 78 $13,592.40 $71,477.10 $85,069.50 $12,467.89 $57,393.07 $69,860.96
Annual Premium $163,308.83 5857,725.17 $1,020,834.00 5149,614.68 5688,716.84 5838,331.52
$ Increase N/A N/A N/A ($13,494.15) ($169,008.33) ($182,502.48)
°6lncrease N/A N/A N/A -817% -19.7096 -17.88%
DENTAL MetUfe MetLife
Employee 47 $0.00 $38.67 $38.67 $0.00 $38.67 $38.67
Family 36 $65.71 538.67 $10438 $65.71 $38.67 $10438
Monthly Premium 83 $2,365.56 $3,209.61 $5,575.17 $2,365.56 $3,209.61 $5,575.17
Annual Premium 528,386.72 $38,515.32 $66,902.04 $28,386.72 538,515.32 $66,902.04
$ Increase N/A N/A N/A $0.00 $0.00 $0.00
% Increase N/A N/A N/A 0.00% 0.00% 0.00%
VISION Cigno MetLife
Employee 12 $6.19 $0.00 $6.19 $5.90 $0.00 $5.90
Employee+5pouse 5 $1237 $0.00 $12.37 $11.83 $0.00 $11.83
Employee+Child(ren) 7 $12.49 $0.00 $12.49 $10.01 $0.00 $10.01
Family 7 $19.69 $0.00 $19.69 $16.51 $0.00 $16.51
Monthly Premium 31 $361.39 $0.00 $361.39 $315.59 $0.00 $315.59
Annual Premium $4,336.68 $0.00 $4,336.68 $3,787.08 $0.00 $3,787.08
$Increase N/A N/A N/A ($549.60) $0.00 ($549.60)
% Increase N/A N/A N/A -12.67% 0.00% -12.67%
LIFE AND AD&D Linco/n Financiol Group Lincoln Financial Group
Life Rate/$1000 $0.00 $031 $031 $0.00 $0.31 $0.31
ADD Rate/$1000 $0.00 $0.03 $0.03 $0.00 $0.03 $0.03
Total Life & ADD $0.00 $0.34 $0.34 $0.00 $0.34 $0.34
Estimated Life / AD&D Volume $7,800,100.00 $7,H00,100.00 $7,800,300.00 $7,800,100.00 $7,800,100.00 $7,800,100.00
Monthly Premium $0.00 $2,652.03 $2,652.03 $0.00 $2,652.03 $2,652.03
Annual Premium $0.00 $31,824.41 $31,824.41 $0.00 $31,824.41 $31,824.41
$ Increase N/A N/A N/A $0.00 $0.00 $0.00
% Increase N/A N/A N/A 0.00% 0.0095 0.00%
GRAND TOTA!
Monthly Premium $16,319.35 577,338.74 $93,658.09 $15,149.04 $63,254.71 $78,403.75
Annual Premium $195,832.23 $928,064•90 $1,123,897.13 5381,788.48 5759,056.57 $940,845.05
$ Increase N/A N/A N/A ($14,043.75) (5169,00833) ($183,052.08)
% Increase N/A N/A N/A -7.17% -18.219'0 -16.29%
Reid, Merlene
From: Lucille Turner [LETurnerC�carson-adkinslaw.com]
Sent: Friday, August 01, 2014 2:19 PM
To: Reid, Merlene
Subject: Health, dental and Group Life Insurance 2014/15
Merlene—
We have reviewed the request for approval of a contract for health insurance, dental insurance, and group life insurance
for fiscal year 2014/15. We have also reviewed your July 31, 2014 memo to Mr. Couzzo which provides additional
information about the contracts, and your supporting documentation that outlines the costs of the plans.
The request and the agenda item related to this matter are legally sufficient.
We have not reviewed the language of the contracts with the insurance providers.
Please contact us if we can be of further assistance.
Lucille E. Turner LETurner@carson-adkinslaw.com
Carson & Adkins 850-894-1009
2930 Wellington Circle, Suite 201 850-894-1677 fax
Tallahassee, FL 32309 850-322-7063 cell
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