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Res No 170-17-14971RESOLUTION NO. 170-17-14971 A Resolution authorizing the City Manager to purchase dental and vision insurance benefits from Humana for full time employees and participating retirees. WHEREAS, the City, through its Agent of Record, Brown & Brown of Florida secured more than three competitive quotes for the City's Group Dental and Vision Insurance and recommended Humana as the selected dental and vision Insurance provider. WHEREAS, the City, through its Agent of Record, Brown & Brown of Florida compared the insurance rates, dental and vision plan design, provider network as well as the City's previous claims experience/ratio; and WHEREAS, the City Commission wishes to approve the selection of Humana for the provision of dental and vision insurance benefits for all full time employees and participating retirees. WHEREAS, the premium shall be charged to departmental line items in their respective account numbers. NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA THAT: Section I. The City Commission hereby authorizes the City Manager to execute the dental and vision insurance renewal policy with Humana for full time employees and retirees for the 2017-2018 Fiscal Year. Section 2. This resolution shall take effect immediately upon adoption. PASSED AND ADOPTED this15th day of August, 2017. ATTEST: ~te4U£v ITY ERK I APf'ROVED~ ill- COMMISSION VOTE: 5 -0 Mayor Stoddard: Yea Vice Mayor Welsh: Yea Commissioner Harris: Yea Commissioner Liebman: Yea Commissioner Edmond Yea THE CITY OF PLEASANT LIVING TO: FROM: DATE: CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM The Honorable Mayor & Members of the City Commission August 15, 2017 Agenda Item No.:ll Steven Alexander, City Manager SUBJECT: A Resolution authorizing the City Manager to purchase dental and vision insurance benefits from Humana for full. time employees and participating retirees. Background: Typically, healthcare costs are expected to increase 10-15% each year and based on that industry forecast the city budgeted for an increase of 15% to allow for proper assumptions in this regard. The City's benefits agent on record, Brown & Brown of Florida, Inc. per Resolution #137-16- 14692, solicited quotes for the employee's dental and vision insurance coverages for South Miami full time employees for the Plan Year 2017- 2018. Humana, the City's current dental and vision insurance carrier, renewal rate represented 0% increase from last year. The City currently contributes $8.49 per eligible employee, per month, toward dental insurance coverage and the vision is voluntary paid by employee. The renewal is appropriately funded in the proposed Budget for Fiscal Year 2017-2018. Recommendation: Based upon the proposals received, staff recommends the City renew with the current Humana carrier for dental and vision insurances. Amount: The estimated total annual premium cost for dental benefits paid by the City is about $10,000 based on today's personnel. Account: Premium charges for the dental insurances will be charged to the designated departmental budget line items as proposed in the Fiscal Year 2017-2018. Attachments: Proposed resolution and 2017-2018 comparison. October 2017 Dental Comparison for City of South Miami C~rner ----Humana . !-iumana Plan DM0205 PPO Provider Acess In-Network Out of Network Benefrt Description Preventive (Class I) NA 100% 100% Basic (Class II) NA 8oolo 80"J!, Major (Class III) NA 50% 50% Maximum Annual Benefit NA Unlimited Unlimited Deductible (lndividuallFamily) NA $501$150 $50/$150 Deductible Waived -Class I NA Yes Yes OrthodonHa (coveragenltetime max) $2.650 Child & Adult $1.000 Child Only $1,000 Chnd Only Reimbursement Schedule" Fee Schedule MAC Benefits Routine Exams -9430 No Charge 100% 100% Teeth Cleaning -1110 No Charge 100% 100% Fun MouthlPanoramic X-rays -0330 No Charge 100% 100% Simple Extractions -7111 No Charge 80% 80% Root Canal (Endodontics) -3330 $250 80% 80% . odonUcs ScafJllgiRoot Planning -4341 $55 per quad 80% 80% Full or Partial Dentures -5110 $375 50% 50% Crowns -6752 $270 50% 50% Specially Services performed by an participating specialist-not a general Contracted I:>iscount NlA N/A dentist Employer Conlribution Contributory Contributory Minimum Participation Requirement Combined 50% Waiting PeriOd Major Services" None None Rate Guarantee Umil 9130120 17 Until 913012017 R2tes Current Current Employee 53 $8.49 21 $31.10 Employee + Spouse $16.98 $64.92 Employee + Child(ren) 7 $19.11 $73.16 Family 4 $30.74 $114.78 Monthly Premium By Product $825,56 $1,836,00 Total Monthly Premium $2,661.56 Total Annual Premium $31,938.72 % Change In Monthtv Premium by Plan $ Change in Monthly Premium by Plan $ Change in Total Mon1h1y Premium % Change In Total Annual Premium $ Change In Total Annual Premium 63 Humana Humana DM0205 PPO NA NA NA NA NA NA $2,650 Child & Adult No Charge No Charge No Charge No Charge $250 $55 per quad $375 $270 Contracted Discounl Contribulory None 12 Monlhs Renewal $8:49 $16.98 $19.11 $30.74 $825.56 0.0% $0.00 I I In-Network Out of Network 100% 100% 80% 80% 50% 50% Unlimited Unlimited $501$150 $501$150 Yes Yes $1,000 Child Onty $1,000 Child Only Fee Schedule MAC 100% ... ~" 100% 100% 100% 100% 100% 80% 80% ,'- 80% 80% 80% 80% "50% 50% 50% 50% N/A N/A Contributory Combined 50% None 12 Months Renewal 21 $31.69 8 $66.15 3 $74.55 5 $116.96 $1,870.84 $2,696.40 $32,356.80 1;9% $34.84 $34.84 1.3% $418.08 Rates shown are based on census data provided. Final rates are subject tD underwriting and actual ,enr·o/lmeni ThIs oDmparisonis for illustrative pUrpDSescmly. The ftrIJportey and certifrcate of ci!verage will supersede any and all materials provided herein. Page 1 of8 \1 =;=====:::;=~=::==_~ __ ~' __ ' ~:~_~_, __ '_:: __ :: .. ,::~'=_, ========-"==_"='_-=-=-=--=-~""~"~""_'~''"_''''_=-'~~'~~_'_'''~-~'<=--'-::'--"~::'~ ___ ::~_" =', __ JI. -,<' .,."., """;;"'","'··r,;~7:··""'·~;'!'~"""""·""(".,:':",:,':r:n'S'7, ;'.'.' .. ':"" ". .... . . . .' . October 2017 Dental Compariso~for C'lty of South Miami Carner Humana Humana MetLife MetLlfe Plan DM0205 PPO DHMOSGX290 PPO Provider Acess In·Network Out of Network In·Network Out of Network Benefit Description Preventive (Class I) NA 100% 100% NA 100% 100% Basic (Class II) NA 80% 80% NA 80% 80% Major (Class III) NA 50% 50% NA 50% 50% Maximum Annual Benefit NA Unlimited UnlimHed NA $3,000 $3,000 Deductible (IndividuaUFamDy) NA $50/$150 $501$150 NA $50/$150 $50/$150 Deductible Waived· Class I NA Yes Yes NA Yes Yes Orthodontia (coveragelllfetime max) $2,650 Child & Adult $1,000 Child Only $1,000 Child Only $2,680 Child & AduH Not Covered Not Covered Reimbursement Schedule" Fee SchedLie MAC Fee Schedule 90th Percenhle Benefits Routine Exams -9430 No Charge 100% 100% No Charge 100% .. -:.' 100% T eelh Cleaning -1110 No Charge 100% 100% $5 100°,!, 100% Full MoulhlPanoramic X-rays • 0330 No Charge 1000k 100% No Charge 80% 80% . Simple Ex1ractlons· 7111 No Charge 80% 80% $5 80% 80% Root Canal (Endodontics) • 3330 $250 80% 80% $265 80% , .... ! 80% riodonlics ScafingiRoot Planning· 4341 $55 per quad 80% 80% $50 per quad 80% 80% Fun or Partial Dentures· 5110 $375 50% 50% $440 50'10 50% Crowns -6752 $270 50% 50% $290 50% 50% Specially Services performed by an participating specialist-not a general Conlraded Discount NlA N/A ConlraCled Rates N/A N/A dentist Employer Contribution Contributory Contributory Contributory Contributory Minimum Participation Requirement Combined 50% 95% Combined (Min. 5 in OHMO. Min. 10 in OPPO) Waiting Period Major Services" Noae None Rate Guarantee Until 9130/2017 Until !;!130/2017 Rates Current Current Employee 53 $8.49 21 $31.10 53 Employee + Spouse $16.98 $64.92 Employee + Child(ren) $19.11 $73.16 Family $30.74 $114.78 Monthly Premium By Product $825.56 $1,836,00 Total Monthly Premium $2,661.56 $3,515,38 Total Annual Premium $31,938.72 $42,184.56 % Change in Monthly Premium by Plan $ Change In Monthly Premium by Plan $ Change in Total Monthly Premium 18.1% 38.4% $149.64 $704.18 $853.82 % Change In Total Annual Premium $ Change in Total Annual Premium 32.1% $10,245.84 Rates sh:OY/n, ar.e based 00 census· data provided. Final rates are subject ·to underwrlting an<l actual elll'Dllmem. 1iI1:iS .cDmparisDns for U1ustrativepurposes on.ly. The fun policy and certificate of coverage will $upersede any and all materials provided 'nerein. .:27 ........ :gg;;:;:. Page4of8 October 2017 Dental Comparison for City of South Miami Carner Plan provider Acess Benefit Description PreventiVe (Class I) Basic (Class II) Major (Class III) Maximum Annual Benefrt Deductible (IndlviduallFamlly) Deductible Waived -Class I Orthodontia (coverageilifetime max) Reimbursement Schedule" Benefits Routine Exams -9430 Teeth Cleaning -1110 Full MouIhiPanoramlc X-rays -0330 Simple Extractions -7111 Root Canal (Endodontics) -3330 riodontics ScalinglRoot Planning -4341 Full or Partial DenlIJlBS -5110 Crowns -6752 SpeCialty Services performed by an participating speCialist-not a general dentist Employer Contribution Minimum PartiCipation Requirement Waiting Period MajOr services· Rate Guarantee Rates Employee 53 EmplOyee ... Spouse Employee'" Child(ren) Family Monthly Premium By Product Total Monthly Premium Total Annual Premium % Change in Monthly Premium by Plan $ Change In Monthly Premium by Plan $ Change in Total Monthly.Premium % Change In Total Annual Premium $ Change in Total Annual Premium . Humana Hurnana DM0205 PPO In-Nalwork Out of Nelwork NA 100% 100% NA 80% 80% NA 50% 50% NA Unlimited Unlimited NA $501$150 $501$150 NA Yes Yes $2,650 Child & Adult $1,000 Chnd Only $1,000 Child Only Fee Schedule MAC No Charge 100% 100% No Charge 100% 100% No Charg~ 100% 100% No Charge 80% 80% $250 80% 80% $55 per quad 80% 80% $375 50'% 50% $270 50% 50% Contracted Discount N/A N/A Contributory Contributory Combined 50% None None Unli1913012017 Until 913012017 Curront Current $8.49 $16.98 $19.11 $30.74 $825.56 21 $2,661.56 $31,938.72 $31.10 $64.92 $73.16 $114.78 $1,836.00 53 PrinCipal (Solstice) Principal DMO S800B-SHP PPO In-Nelwork Out Of Networl< NA 100% 100% NA 80% 80% NA 50% 50% NA $3,000 $3,000 NA $50/$150 $501$150 NA Yes Yes $3.360 Child 1 $3,460 Adult $1,000 Child Only $1,000 Child Only Fee Schedule MAC .:~:. $5 100% 100% No Charge 100% 100% $50 100% .,.. 100% '" $65 80% 80% $350 80% 800k $80 per quad ; 800la 800la $502 50% 500/. $290 50% 50% Contracted Rates NIA NIA Conbibutory Conbibutory 75% Combined (Min. 2 In DHMO, Min. 20% in DPPOl None 12 Months $10.62 $18.59 $23.01 $29.21 $970.90 17.6% $145.34 $2,841.40 $34,096.80 $179.84 6.8% $2,158.08 None $65.06 $74.99 $111.93 $1,870.50 1.9% $34.50 Rates shown are based on census data provided. Final rates are subject to underwriting and actual enrollment. This comparison, is for iIIlJ'.Srrative .PlrrpDSes onlY. The full poncy and certificate of coverage will supersede allY and allrnaterlais provided ·he~ein. Page5Of8 October 2017 Dental Comparison for City of South Miami Carner Humana Humana UHC (Solstice) United Healthcare Plan DM0205 PPO DMOD1058 PPO Provider Acess In-Network Out of Network In-Network Out of Network Benefrt Description Preventive (Class I) NA 100% 100% NA 100% 100% Basic (Class II) NA 80% 80% NA 80% 80% Major (ClaSS III) NA 50% 50% NA 50% 50% Maximum Annual Benefit NA Unlimited Unfimited NA $5,000 $5,000 Deductible (IndlviduaUFamlly) NA $501$150 $501$150 NA $501$150 $501$150 Deductible Waived -Class I NA Yes Yes NA Yes Yes Orthodontia (coverageJJlfetime max) $2,650 Child & Adult $1,000 Child Only $1,000 Child Only $2,835 ChRd 1 $2,935 Adult $1,000 ChRd Only $1,000 Child Only Reimbursement Schedule" Fee Schedule MAC Fee Schedule MAC Benefits ~.::: Routine Exams -9430 No Charge 100% 100% No Charge 100% 100% Tee1h Cleaning -1110 No Charye 10oo'!' 10oo/. No Charge 100% 100% Full MoutillPanoram/c X-rays -0330 No Charge 100% 1000k Simple Extractions -7111 . No Charye 80% 80% $50 1000k .' 100% "t.~ $50 80% 80% Root Canal (Endodontics) -3330 $250 80% 80% $245 80% 80% riodontics SealinglRoot Planning -4341 $55 per quad 80% 80% $50 per quad .80% 80% Full or Partial Dentures -5110 $375 50% 50% $325 50% 50% Crowns -6752 $270 50% 50% $245 50% 50% Specially Services performed by an participating speciaBst-not a general Contracted Discount N/A N/A Conlracted Rates N/A N/A dentist Employer Contriblllion Conlnbulory Contributory Conbibulory Contributory Minimum Participation Requirement Combined 50% 75% Combined Waiting Period Major Services· None None None None RaUl Guarantee Until 9130/2017 Until 9130/2017 Rates Current Curr~nt Efl1lloyee 53 $8.49 21 $31.10 53 $12.61 Employee + Spouse $16.98 $64.92 Employee + Chi/d(ren) $19.11 $73.16 $27.31 Family Monthly Premium By Product $30.74 $114.78 $825.56 $1,836.00 ,743.87 Total Monthly Premium $2,661.56 $2,896.47 Total Annual premium $31,938.72 $34,757.64 % Change in Monthly Premium by Plan $ Change in Monthly Premium by Plan $ Change In Total Monthly Premium 39.6% -5.0% $327.04 ·$92.13 $234.91 % Change in Total Annual Premium $ Change in Total Annual Premium 8.8% $2,818.92 Rates sttown are based on: census data pmvidled. Final rates are sUibJect to underwriting ani:l actual 'enrollment, Thiisco<mparisOnis for i11lJ'Strative PUrpDSeSOn-Iy. The fuJI pofiey and certificate of coverage will supersede allY '8.ndall materials pr-ovidedherein. Page8of8 1 __ 1 October 2017 Dental Comparison for City of South Miami Carner Humana Humana The Standard Tho Standard Plan DM0205 PPO"''l!'' PPO PPO Provider Acess In-NetWork Out of Network In-Nelwork Out of Nelwork In-Network Out of Network Benef"rt Description Preventive (Class I) NA 100% 100% 100% 100% 100% 100% Basic (Class II) NA 80% 80% 50% 50% 80% 80% Major (Ctass III) NA 50% 50% 25% 25% 50% 50% Maximum Annual Benefit -NA Unlimited Unlimited $750 $750 $3.000 $3.000 Deductible (lndlviduallFamily) NA $50/$150 $50/$150 $15 pervis~ $15 per visit $501$150 $501$150 Deductible Waived -Class I NA Yes Yes No No Yes Yes Orthodontia (coveragenifetime max) $2,650 Child & Adult $1 ,000 Child Only $1,000 Child Only Not Covered Not Covered $1,000 Child Only $1.000 Child Only Reimbursement Schedule" Fee Schedule MAC Fee Schedule MAC Fee Schedule MAC -Benefits Routine Exams -9430 No Charge 100% 100% 100% 100% 100% 100% Teeth Cleaning -1110 No Charge 100% 100% 100% 100% 100% 100% Full MouthlPanoramlc X-rays -0330 No Charge 100% 100% 100% 100",(, '~% 100% Simple ExtraClions -7111 No Charge 80% 80% 50% 50010 80",(, 80"10 Root Canal (Endodontics) -3330 $250 80% 80% 25% 25% 80% 80% riodontics ScaiinglRoot Planning -4341 $55 per quad 80% 80% 25% 25% 80DAo 80% Full or Partial Dentures -5110 $375 50% 50% 25% 25% 50% 50% Crowns -6752 $270 50% 50% 25% 25% 50% 50% Specialty Services performed by an participating speciallst-not a general Contracted Discount N/A N/A N/A N/A NlA N/A dentist Employer Contribution Contributory Contnbutory Contributory Contributory Minimum Participation Requirement Combined 50% 100% Combined Wailing Period Major Services" None None None None Rate Guarantee Until 913012017 Until 9130/2017 12 Months Rates Current Current Employee 53 $8.49 21 $31.10 53 $13.66 Employee + Spouse Employee + Child(ren) Family Monthly Premium By Product Total Monthly Premium Total Annual Premium $16.98 $64.92 $19.11 $73.16 $30.74 $114.78 $825.56 $1,836.00 $2,661.56 $31,938.72 $28.74 $33.12 $69.50 $48.19 $109.04 ,349.76 $1;744.27 $3,094.03 $37,128.36 % Change in Monthly Premium by Plan $ Change In Monthly Premium by Plan $ Change In Total Monthly Premium % Change In Total Annual Premium $ Change in Total Annual Premium 63.5% -5.0% $524.20 -$91.73 $432.47 16.2% $5,189.64 Rates shown are based on census data provided. Final rates Me slJ1bject tOlJ1lderwriting and actual enrollment. Thisoomparison is for Hlustrative purpases on.Jy. The full policy and certificate of coverage will supersede any and all marerialsprovided herein. \. .. ..: ___ " _I Page60f8 October 2017 Vision Comparison for City of South Miami Carrier Network Provider Network Status Eye Care Wellness Eye Exam Frequency Lenses Single Vision Bifocals Trifocal Frequency Frames Selected Frames Frequency Contacts Medically Necessary Elective Contacts Contribution Type Participation Requirements Rate Guarantee Rates Employee Employee + Spouse Employee + Child Family Monthly Total Annual Total % Change in Total Annual Premiu $ Change in Monthly Premium by $ Change In Total Annual Premiu Humana . EyeMed In-Network I OON $0 Copay 1 up to $30 Every 12 Months Reimbursement $OCopay up to $25 $OCopay up to $40 $.0 Capay up to $60 Every 12 Months Reimbursement $200 allowance + 20% up to $100 discount over Every 24 Months Reimbursement Covered 100% up to $210 $200 allowance + 15% up to $160 discount over Voluntary 50% Until 9/3012018 Current The Standard VSP 'In-Network I OON $0 Capay 1 up to $45 Every 12 Months Reimbursement $0 Capay up to $30 $0 Copay up to $50 $0 Capay up to $65 Every 12 Months $180 allowance + 20% discount over 100% $180 allowance Voluntary 75% 24 Months Reimbursement up to $70 Reimbursement up to $210 up to $145 60$8.14 60 10 $13.70 10 10 $13.97 10 6 $22.11 6 r-------------~~~----------~ r-------------~$8~9=7.~76~----------~ $10,773.12 Sun Life In-Network I OON $10 Copay I up to $52 Every 12 Months Reimbursement $10 Copay up to $55 $10 Copay up to $75 $10 Capay up to $95 Every 12 Months Reimbursement .~~:. $130 allowance + 20% up to $57 discount over '\---: Every 24 Months Reimbursement 100% up to $210 $130 allowance up to $105 Voluntary 76% 12 Months $5.75 $11.49 $12.31 $18.55 $694.30 $8,331.60 Rates ShDWIl-are based on. census data provided. Fin,al rates are subject tD umJerwritin,g .and actual ennl'lIment. This .cDmparistJ<llis for illustrative PUrpDSes only. The fuJI policy an.d certificateD! CD'o'erage will Sl1persede any an.d all materials prwided·herein. Page 50f8 .~----~--~---- October 2017 Vision Comparison for City of South Miami Carner Humana Network Provider EyeMed Network Status In-Network L OON Eye Care Wellness Eye Exam Frequency $0 Capay 1 up to $30 Every 12 Months Lenses Reimbursement ~ingle Vision $OCopay up to $25 Bifocals $0 Copay up to $40 Trifocal $0 Copay up to $60 Frequency Every 12 Months Frames Reimbursement Selected Frames $200 allowance + 20% up to $100 discount over FrequencY Every 24 Months Contacts Reimbursement Medically Necessary Covered 100% up to $210 Elective Contacts $200 allowance + 15% up to $160 discount over Contribution Type Voluntary Participation Requirements 50% Rate Guarantee UnUI913012018 Rates Current Employee Employee + Spouse Employee + Child I VSP In-Network I OON $0 Capay I up to $45 Every 12 Months Reimbursement $0 Copay up to $30 $0 Copay up to $50 $0 Copay up to $65 Every 12 Months $180 allowance + 20% discount over 100% $180 allowance Voluntary 51 enr'Oned 48 Months Reimbursement up to $70 Reimbursement up to $210 up to $105 60 $23.34 10 $37.34 10 $38.12 Family Monthly Total r-____________ :=~~----------~6~----------~~$~61~.4~6~----------~ $2,523.76 Annual Total $30,285.12 % Change in Total Annual Premiu 272.60% $ Change in Monthly Premium by $1,846.42 $ Change in Total Annual Premiu $22,157.04 Rates allown, are based on census data provided. Final rates are sub]ecUo underwriting and actual enroDment. This cDmPsr.isol1: is for illustrative purposes on.ly. The fun poliCy and certificate of coverage will supersede any and a~ materials provided l\erejn. -_ ... --_._------- . -. . -' '.~' . . -. ~-.. ,_.-.•... ---.._.. . PageSofS