Res. No. 203-99-10826RESOLUTION NO.203-99-10826
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
SOUTH MIAMI,FLORIDA,AUTHORIZING THE CITY MANAGER TO ENTER
INTO A CONTRACT WITH BLUE CROSS BLUE SHIELD TO PROVIDE GROUP
HEALTH INSURANCE FOR CITY OF SOUTH MIAMI FULL-TIME
EMPLOYEES.
WHEREAS,in order to ensure adequate health insurance
for City employees and their families,the City has found it
necessary toseekan insurance planthatwill provide
quality coverage including the use ;and
WHEREAS,theCityAgentof Record has solicited
proposals fromsix (6)differentcompaniesonthegroup
health insurance plan;and
WHEREAS,three (3)companies submitted proposals;and
WHEREAS,a review committee consisting of the Agent of
Record,the Human Resources Director,representatives ofthe
PBA,AFSCME andgeneral employees carefully reviewed the
proposalsandunanimouslyrecommendedtheselectionofBlue
Cross Blue Shield.
NOW,THEREFORE,BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA:
Section 1.The City Manager is hereby authorized
to contract with Blue Cross Blue Shield of Florida for the
city group health insurance;
Section 2.The contract shall be effective
October 15,1999 and shall be renewable on an annual basis;
Section 3.This resolution shall take effect
immediately upon approval.
passed and adopted this j^JMay of September
_j_1999.
ATTEST:
WlZfc\rJ?dU
CITY CLERK
READ AND APPROVED AS TO FORM
f-^r&r*/A/1-
CITY ATTORNEY
APPROVED:
^^J^c£c^_
MAYOR
COMMISSION VOTE:
Mayor Robaina:
ViceMayor Oliveros:
Commissioner Feltu:
Commissioner Russell
Commissioner Bethel:
Yea
Yea
Yea
Yea
Yea
CITY OF SOUTH MIAMI
INTER-OFFICE MEMORANDUM
To:Mayor and City Commission
From:Charles D.Scurr ^*
City Manager /<•/Ci^^
Date:September 28,1999
Re:AGENDA ITEM #
City Commission Meeting
of Sept.28,1999
Health Insurance.
REQUEST
TheattachedresolutionseekstheCityCommission's authorization toawardthecontractfor
healthinsurancefortheCity of SouthMiamitoBlueCrossBlueShield of Florida.
BACKGROUND
Last year,theCity approved a contract renewal with Prudential Health Systems forgroup health
insurance coverage forits full time employees.TheCity recently received notice thatthe Baptist
HealthSystemsnetwork of hospitalswouldnolongerbeinthe Prudential systemeffective
September 30,1999.Baptist Health Systems includes South Miami Hospital and Baptist
Hospital.
AccesstotheBaptistHealth Systems network of hospitals isan essential component of anyCity
health insurance plan.These hospitals arethe principal facilities inthe South-Dade area.They
arethe primary hospitalsusedbyour employees andarethe principal hospitals where doctors
usedbyCity employees admit patients.This situation has made it necessary fortheCityto rebid
the health insurance contract.
OurAgentofRecordsolicitedbids from sixdifferent companies.Ofthesecompanies,thethree
companieslistedbelowresponded.
Blue Cross Blue Shield of Florida
Cigna Health Plan
Neighborhood Health Plan
A Committee was established to review the proposals.The Committee consisted oftheAgentof
Record,personnel manager,and employee representatives from the PBA,AFSCME,and general
employees.
The Committee completed a review of the proposals prior to the September 21st Commission
meeting.However,it was decided that a more thorough review ofthe proposals,including
presentations byeach of the companies,was required.
TheCommitteehascompletedit's deliberations andhas unanimously recommended the
selection of Blue Cross BlueShield of Florida.The Committee considered manyfactors
including network of physicians,scope of coverage and cost.Blue Cross BlueShieldwas felt to
havethebest overall qualifications andbenefits.
TheCitypays 100%of thecostof individual coverage forthe employee.The employee pays
100%oftheadditionalcostof family coverage.Two options are offered,aHealth Maintenance
Organization(HMO)optionandaPoint of Service(POS)option.
ThecosttotheCity of theBlueCrossBlueShieldproposalislowerthantherenewalrates
quoted previously by Prudential and included intheFY 1999-2000 budget.Theserates include:
Pru-HMO Pru-POS BCBS-HMO BCBS-POS
Individual(PaidbyCity)$189 $248$189 $203
Family(PaidbyEmployee)$263 $346 $265 $426
ThelowerBCBSrateswillyieldaprojectedsavingstotheCity of $35,000intheFY1999-2000
budget.Thisis $15,000 lowerthantheearlierprojectedsavings of $50,000.Thedifferencewill
berealizedthroughadditionalcostsavingsoruse of contingencyfunds.
RECOMMENDATION
Approval is recommended.