5To:
Via:
CITY OF SOUTH MIAMI
OFFICE OF THE CITY MANAGER
INTER-OFFICE MEMORANDUM
The Honorable Mayor, Vice Mayor and Members ofthe City Commission
Steven Alexander, City Manager
South Miami
bOd
iijii?
2001
From:
Date:
LaTasha Nickle, Human Resources Director
Agenda Item No.: 5 August 26, 2013
Subject:
Request:
ReasonlNeed:
Health Insurance Resolution
A Resolution approving the selection of ~ Blue Shield to provide
group health insurance and UHC to provide dental and vision coverage for the City
of South Miami full time employees to be charged to departmental account numbers
respectively; providing for an effective date.
The City's Benefits Consultant, Sapoznik Health & Wellness solicited quotes from all
carriers in the market. The companies responded as follows:
Aetna Submitted proposal
AvMed Submitted proposal
Blue Cross Blue Shield Submitted proposal
Cigna Health care Declined to quote
Coventry Submitted proposal
Humana Submitted proposal
Neighborhood Health Partnership Submitted proposal
Staff recommends that the City Commission select Blue Cross and Blue Shield as health and UHC as
dental and vision insurance providers for the 2013-2014 benefit plan year. Blue Cross Blue and Shield
and UHC have proposed the following monthly premium rates for the upcoming plan year. This year,
the health insurance industry rates increased by an average of 12.1 %. The proposal recommended by
staff is significantly lower than the industry average.
Employee
Employee/ Children
Employee/ Spouse
Employee/ Family
LOW HMO
(BCBS Bluecare 60)
$ 493.76 (6.02% increase)
$ 908.52
$1,175.15
$1,540.52
UHC Dental Rates:
Employee
Employee/ Children
Employee/ Spouse
Employee/ Family
UHC Vision Rates:
Employee
Employee/ Children
Employee/ Spouse
Employee/ Family
DMO
$10.98
$22.07
$22.84
$36.19
$6.66
$12.66
$13.32
$26.21
HIGH HMO
(BCBS Bluecare 56)
$ 526.95
$ 969.59
$1,254.15
$1,644.1 0
PPO
$34.76
$78.12
$70.1 0
$125.21
POS
(Blue Option 03768 LG)
$ 547.28
$1,006.99
$1,302.52
$1,707.50
The FY 2014 health plan rates represent an increase of6.02% above the current FY 2013 rates. The City
currently contributes $474.39 per covered employee per month toward health coverage which will
increase to $493.76. In order to keep costs increases at a minimum while still obtaining a good plan we
proposed several changes to the current plan design. Most significantly, the current plan includes a
deductible of $1,500 individual/$3,000 family which will reduce to $500/individual and $1,OOO/family.
The comparable plan from our current provider, NHP was proposed at an increase of 11.6% above the
current year premium. The proposed change to Blue Cross provides a better plan at significant savings
over the renewal rate.
Premium charges for the health, dental and vision benefits shall be charged to the following budget line
items as proposed in the Fiscal Year 2014 Budget.
DEPARTMENT ACCT#
CRA-ADMINISTRA TIVE 610 1110-5132310
CRA-PROTECTIVE SERVICES 6101110-5212310
CRA-ECONOMIC DEVELOPMENT EMPLOYMENT 6101110-5212310
CRA-PROPERTY MANAGEMENT 6101110-5542310
CRA-PUBLIC ASSISTANT SERVICES 6101110-5692310
CRA-SPECIAL EVENTS 6101110-5742310
CITY CLERK 0011200-5122310
CITY MANAGER 0011310-5132310
CENTRAL SERVICES 0011320-5132310
HUMAN RESOURCES 0011330-5132310
FINANCE 0011410-5132310
BUILDING DEPT 0011610-5242310
PLANNING 0011620-5242310
CODE ENFORCEMENT 0011640-5242310
PW-BLDG MAINT 0011710-5192310
PW-SOLID WASTE 0011720-5342310
PW-STREETS 0011730-5412310
STORM WATER 1111730-5412310
PW-LANDSCAPE 0011750-5192310
PW-EQUIP MAINT 0011760-5192310
PW-OFFICE OF DIR 0011770-5192310
PW -ENGINEERING 0011790-5192310
POLICE 0011910-5212310
PARKS&REC 0012000-5722310
COMMUNITY CENTER 0012020-5192310
Backup Documentation:
Q Proposed resolution.
Q Sapoznik Health & Wellness Summary Report
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RESOLUTION NO.: ______ _
A Resolution approving the selection of Blue Cross and Blue Shield to provide group health
insurance and UHC to provide dental and vision coverage for the City of South Miami full time
employees to be charged to departmental account numbers respectively.
WHEREAS, the Benefits Consultant, Sapoznik Health & Wellness secured more than three
competitive quotes for the City's Group Health, Dental and Vision Insurance and recommended Blue
Cross and Blue Shield and UHC as the selected providers; and
WHEREAS, the City Commission compared the insurance rates, benefit plan design, provider
network as well as the City's previous claims experience/ratio; and
WHEREAS, the City Commission wishes approve with the selection of Blue Cross and Blue
Shield for the provision of Group Health and UHC for the provisions of Dental and Vision Insurance
Benefits for all full time employees and participating retirees.
WHEREAS, the premium charges shall be charged to departmental line items in account numbers
6101110-5132310, 6101110-5212310, 6101110-5212310, 6101110-5542310, 6101110-5692310,
6101110-5742310, 0011200-5122310, 0011310-5132310, 0011320-5132310, 0011330-5132310,
0011410-5132310, 0011610-5242310, 0011620-5242310, 0011640-5242310, 0011710-5192310,
0011720-5342310, 0011730-5412310, 1111730-5412310, 0011750-5192310, 0011760-5192310,
0011770-5192310, 0011790-5192310, 0011910-5212310, 0012000-5722310, 0012020-5192310.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF SOUTH MIAMI, FLORIDA, THAT:
Section 1: The City Commission hereby approves and selects Blue Cross and Blue Shield to
provide of Group Health and UHC to provide Dental and Vision Insurance for the City of South Miami
full time employees for the 2014 fiscal year.
Section 2: This resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED this __ day of ____ , 2013.
ATTEST:
CITY CLERK
READ AND APPROVED AS TO FORM
LANGUAGE, EXECUTION AND
LEGALITY:
CITY ATTORNEY
Approved:
MAYOR
COMMISSION VOTE:
Mayor Stoddard:
Vice Mayor Liebman:
Commissioner Newman:
Commissioner Harris:
Commissioner Welsh:
Commissioner Harris:
Group Name: City of South Miami
Effective Date: October 1, 2013
$200 CO-PAY
DED & $250 CD-PAY
DED THEN 100%
DED & $250 CD-PAY
DED & $250 CD-PAY
DED THEN 100%
60 VISITS
$50 CD-PAY
20 VISITS
NO
$80 CO-PAY
$200 CD-PAY
CDVERED 100%
$275 CO-PAY
$325 CO-PAY PER DAY, 5 DAY MAX
COVERED 100%
COVERED 100%
60 VISITS
$65 CO-PAY
30 VISITS
'$1000
YES
DED, CD-PAY & CD-INS
Bess
DED THEN 100%
DED & $100 CD-PAY
DED THEN 100%
COVERED 100%
DED THEN 100%
DED THEN 100%
COVERED 100%
COVERED 100%
60 VISITS
$50 CD-PAY
20 VISITS
$1000/$2000
NO
CD-PAYS, CD-INS & RX CD-PAY
$80 CO-PAY
$100 CO-PAY DED & $250 CD-DED, $250 CD-I
PAY PAY & 80%
$35 CD-PAY DED THEN 100% DED & 80%
$150 CD-PAY I DED & $250 CD-DED, $250 CD-
PAY PAY & 80%
$200 CD-PAY PER DAY, 5 DAY MAX DED & $250 CD-DED, $250 CD-
PAY PAY & 80%
COVERED 100% DED THEN 100%
COVERED 100% DED THEN 100%
60 VISITS 60 VISITS
$55 CD-PAY $50 CD-PAY I DED & 80%
30 VISITS 20 VISITS 20 VISITS
NONE $1000/$2000 $2000/$4000
N/A NO
10:19 AM Information provided by Sapoznik Insurance is proprietary. It may not be copied, emulated or distributed without express permission.
s.· ... P<:·)z ............
$200 CD-PAY I DED & 50%
$45 CD-PAY I DED & 50%
$300 / $600 CD-I
PAY I DED & 50%
$700 / $1000 CD-I
PAY DED & 50%
$45/ $60 CD-PAY I DED & 50%
35 VISITS 35 VISITS
$250/$750 I $1000/$3001
YES
8/14/2013