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11THE 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 Ci~y Commission Steven Alexander, City Manager Agenda Item No.:ll August 15, 2017 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. 1 RESOLUTION NO. 2 A Resolution authorizing the City Manager to purchase dental and vision insurance 3 benefits from Humana for the City of South Miami full time employees and participating 4 retirees. 5 WHEREAS, the City, through its Agent of Record, Brown & Brown of Florida secured more than three 6 competitive quotes for the City's Group Dental and Vision Insurance and recommended Humana as the selected 7 Dental and Vision Insurance provider. 8 WHEREAS, the City, through its Agent of Record, Brown & Brown of Florida compared the insurance 9 rates, dental and vision plan design, provider network as well as the City's previous claims experience/ratio; and 10 WHEREAS, the City Commission wishes to approve the selection of Humana for the provision of dental 11 and vision insurance benefits for all full time employees and participating retirees. 12 WHEREAS, the premium shall be charged to departmental line items in their respective account 13 numbers. 14 NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF 15 THE CITY OF SOUTH MIAMI, FLORIDA THAT: 16 Section I. The City Commission hereby authorizes the City Manager to execute the dental and 17 vision insurance renewal policy with Humana for full time employees and retirees for the 2017-2018 18 Fiscal Year. 19 Section 2. This resolution shall take effect immediately upon adoption. 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 PASSED AND ADOPTED this __ day of ____ " 2017. ATTEST: CITY CLERK READ AND APPROVED AS TO FORM, LANGUAGE, LEGALITY AND EXECUTION THEREOF: CITY ATTORNEY APPROVED: MAYOR COMMISSION VOTE: Mayor Stoddard: Vice Mayor Welsh: Commissioner Harris: Commissioner Liebman: Commissioner Edmond October 2017 Dental Comparison for City of South Miami Description Preventive (Class I) Basic (Class II) Major (Class III) Annual Benefit (IndividuaUFamily) DeduCtible Waived -Class I (coveragenifetime max) Schedule" Routine Exams -9430 Teeth Cleaning -1110 Full MouthlPanoramic X-rays -0330 Simple Extractions -7111 Root Canal (Endodontics) -3330 ScaHngiRoot Planning -4341 Full or Partial Dentures -5110 Crowns -6752 Specially Services performed by an participating specialist-not a general dentist Participation Requirement % 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 I I DM0205 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 Biscount Contributory None $19.11 $30.74 $825.56 PPO In-Network I Out of Network 100% 100% 80010 80010 50% 50% Unlimited Unlimited $501$150 $50/$150 Yes Yes $1,000 Child Only $1,000 Child Only Fee Schedule 100% 100% 100% 80% 80% 80% 50% 50% N/A $2,661.56 $31 Contributory Combined 50% None $73.16 $114.78 $1,836.00 MAC 100% 100% 100% 80% 80% 80% 50% 50% N/A I I I I DM0205 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 Discount Contributory None $16.98 $19.11 $30.74 $825.56 PPO In-Network Out of Network 100% 100% 80% 80% 50% 50% Unlimited Unlimited $501$150 $501$150 Yes Yes $1,000 Child Only $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 ... $31.69 $66.15 $74.55 $116.96 $1,870.84 $2,696.40 $32,356.80 Rates'sl1own are Dased on census data prOVided. Final rates are subject to underwriting and actual ,enl'OJlment This compariSon is for i/JustrBtive purposes only. Th:e full policy and certificate of coverage will supersede any and all materialspl'Ovidedl1erein. Page 1 of8 II il il ==~==~~~~::::~~:::::==========~~~:::::::--.... -~~j! October 2017 Dental Comparison for City of South Miami DesCription Preventive (Class I) Basic (Class II) Major (Class III) Annual Benefit (IndividuallFamily) Deductible Waived -Class I (coveragenlfetime max) Schedule- Routine Exams -9430 Teeth Cleaning -1110 Full MouthlPanoramic X-rays -0330 Simple Extractions -7111 Root Canal (Endodontics) -3330 ScalinglRoot Planning -4341 Full or Partial Dentures -5110 Crowns -6752 Specialty Services performed by an participating specialist-not a general dentist Contribution Participation Requirement Period Major Services" Premium By Product % 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 DM0205 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 Discount Contributory None $16.98 $19.11 $30.74 $825.56 PPO In-Network Out of Network 100% 100% 80% 80% 50% 50% Unlimited Unlimited $50/$150 $50/$150 Yes Yes $1,000 Child Only $1,000 Child Only Fee Schedule MAC 100% 100% 100% 100% 100% 100% 80% 80% 80% 80% 80% 80% 50% 50% 50% 50% NlA N/A Contributory Combined 50% None I I I I In-Network Out of Network NA 100% 100% NA 80% 80% NA 50% 50% NA $3,000 $3,000 NA $50/$150 $50/$150 NA Yes Yes $2,680 Child & Adult Not Covered Not Covered Fee Schedule 90th Percentile No Charge 100% .:::, 100% $5 100% 100% No Charge 80% 80% $5 80% 80% $265 80% '\,'''"~ 80% $50 per quad 80% 80% $440 50"A. 50% $290 50% 50% Contracted Rates I I N/A N/A Contributory Contributory 95% Combined (Min. 5 in DHMO, Min. 10 in DPPO) None I $31.36 $975.20 18.1% $149.64 I $42,184.56 $853.82 32.1% $10,245.84 None $93.32 $93.59 $150.94 $2,540.18 38.4% $704.18 Rates shown are based on census data provided. Final rates are subject to underwriting and actual ,enPDIJment. Thiscomparison,js for illustrative purposes only. The fun policy and certificate of coverage will $oupersede any and aIJ materials provided herein. Page 4 of8 .-= ..... " .. _.,.~"' ... ~C., .• ,':"~<"7c~'...,~"?:!'C.'.. F"c''''~'''''''''~~.&;'''''''''_''':''''~'T;C·'''~~:'?"'''f~''is:'c''3~0~;·{~'';C:''l\~i,;'';?;_' October 2017 Dental Comparison for City of South Miami Preventive (Class I) Basic (Class II) Major (Class III) Annual BeneFit (IndividuallFamily) Deductible Waived -Class I (coveragenifetime max) Schedule" Routine Exams -9430 Teeth Cleaning -1110 Full MouthlPanoramic X-rays -0330 Simple Extractions -7111 Root Canal (Endodontics) -3330 ScalinglRool Planning -4341 Full or Partial Dentures -5110 Crowns -6752 Specially Services performed by an participating specialist-not a general dentist Participation Requirement Period MajOr Services· Premium By Product Monthly 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 . I I I I DM0205 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 Discount Conhibutory None $16.98 $19.11 $30.74 $825.56 I I PPO In-Network Out of Network 100% 100% 80% 80% 50% 50% Unlimited Unlimited $501$150 $501$150 Yes Yes $1,000 Child Only $1,000 Child Only Fee Schedule 100% 100% 100% 80% 80% 80% 50''10 50% NIA Conhibutory Combined 50% None $64.92 $73.16 $114.78 $1,836.00 MAC 100% 100% 100% 80% 80% 80% 50% 50% NIA $2,661.56 $31,938.72 DMO S800B-SHP NA NA NA NA NA NA $3,360 Child 1 $3,460 Adult $5 No Charge $50 $65 $350 $80 per quad $502 $290 Contracted Rates Conhibutory None $18.59 $23.01 $29.21 $970.90 17.6% $145.34 PPO In-Network Out of Network 100% 100% 80% 80% 50% 50% $3,000 $3,000 $501$150 $501$150 Yes Yes $1,000 Child Only $1,000 Child Only Fee Schedule MAC 100% 100% 100% 100% 100% . 100% '-" 80% 80% 80% 80%, : 80"/0 80"/0 50% 50% 50% 50% NIA NIA Conhibutory in DHMO, Min. 20% in DPPOl None $2,841.40 $34,096.80 6.8% $2,158.08 12 Months $33.12 $65.06 $74.99 $111.93 $1,870.50 1.9% $34.50 Rates shown are based on census data pmvided. Final rates are subject t{) underwriting and actual enrollment. This comparison is for mustrative purposes only. The full policy and certificate {)f coverage will supersede any and all materials pmvided herein. Page5of8 ~-.-.--. '~""~C-''''''.-''-'-'''''-'' • .-: .• ......,r .. , .... ,.x~!~·.,",,~i.-.·: .. ,.:".-~"''':.':<~'''''·'·:;~f:''''5'~'!''!i'''''·~r(:'7:''{'~:··· October 2017 Dental Comparison for City of South Miami Description Preventive (Class I) Basic (Class II) Major (Class III) IMaximum Annual Benefit Deductible (IndividuaUFamily) Deductible Waived.-Class I (coverage/Jifetime max) IReimbursement Schedule- Routine Exams -9430 Teeth Cleaning -1110 Full MouthlPanoramic X-rays -0330 Simple Extractions -7111 Root Canal (Endodontics) -3330 FriOdontics ScalingiRoot Planning -4341 Full or Partial Dentures -5110 Crowns -6752 Specialty Services performed by an participating specialist-not a general dentist I Employer Contribution Minimum PartiCipation Requirement Period Major Services· Premium By Product % 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 DM0205 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 Discount Contributory None Until 9130/2017 • $8.49 $16.98 $19.11 $30.74 $825.56 I I PPO In-Network Out of Network 100% 100% 80% 80% 50% 50% Unlimited Unnmiled $501$150 $501$150 Yes Yes $1,000 Child Only $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 I $64.92 $73.16 $114.78 $1,836.00 $2,661.56 $31,938.72 DMOD1058 PPO In-Network Out of Network NA 100% 100% NA 80% 80% NA 50% 50% NA $5,000 $5,000 NA $501$150 $501$150 NA Yes Yes $2,835 Child 1 $2,935 Adult $1,000 Child Only $1,000 Child Only Fee Schedule MAC "'::: No Charge 100% 100% No Charge 100% 100% $50 100010 100% $50 80% ... ;~ 80% $245 80% 80% $50 per quad ·80% 80% $325 50% 50% $245 50% 50% Contracted Rates N/A N/A Contributory Contributory I None None $22.06 $61.66 $27.31 $69.49 4 $34.67 $109.02 $1,152.60 $1,743.87 $2,896.47 $34,757.64 39.6%. I I -5.0% $327.04 -$92.13 $234.91 8.8% $2,818.92 Rates slloYin are based on census data provided. Final rates are subject to underwriting and actualenmllment. This comparison is fDr illustrative pUrpDSes Dnly. The full policy and certificate of coverage will supersede any and all materials pmvided herein. Page8of8 ~I ~~ -~!-.~l ~l -.1 ~----., - October 2017 Dental Comparison for City of South Miami Description Preventive (Class I) Basic (Class II) Major (Class III) IMaximum Annual Benef"rt - Deductible (IndivicluallFamily) Deductible Waived -Class I \Orthodontia (coveragenifetime max) Routine Exams -9430 Teeth Cleaning -1110 Full MouthlPanoramic X-rays -0330 Simple Extractions -7111 Root Canal (Endodontics) -3330 ~riOdOntiCS ScalinglRoot Planning -4341 Full or Partial Dentures -5110 Crowns -6752 Specialty Services performed by an participating specialist-not a general dentist IMinimum Participation Requirement Period Major Services· Premium By Product % Change in Monthty Premium by Plan $ Change in Monthly Premium by Plan $ Change in Total Monthly Premium % Change in Total Annual Premium $ Change in Total Annual Premium 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 Discount Contributory None Until 913012017 $8.49 $16.98 $19.11 $30,74 $825.56 In-NetWork Out of Network 100% 100% 80% 80% 50% 50% Unlimited Unlimited $50/$150 $50/$150 Yes Yes $1,000 Child Only I $1,000 Child Only Fee Schedule MAC 100% 100% 100% 80% 80% 80% 50% 50% N/A $2,661.56 $31,938.72 Contributory Combined 50% None $64.92 $73.16 $114.78 $1,836.00 100% 100% 100% 80% 80% 80% 50% 50% N/A In-Network 100% 50% 25% $750 $15 per visit No Not Covered Fee Schedule 100% 100% 100% 50% 25% 25% 25% 25% N/A PPO Out of Network 100% 50% 25% $750 $15 per visit No Not Covered MAC 100% 100% 100"A> 50"A> 25% 25% 25% 25% N/A Contributory None $28.74 $33.12 $48.19 $1,349.76 :-"---" -~-.} \---.-! PPO In-Network Out of Network 100% 80% 100% 80% 50% 50% $3,000 $501$150 Yes $1,000 Child Only Fee Schedule $3,000 $501$150 Yes $1,000 Child Only MAC $3,094.03 <::: 100% 100% 100% .,.,<' .... 80"A> 80% 80% 50% 50% N/A Contributory None $61.67 $69.50 $109.04 $1,744.27 100% 100% 100% 80"A> 80% 80% 50% 50% N/A $37,128.36 63.5% I I -5.0% $524.20 -$91.73 $432.47 '1"6.2% $5,189.64 Rates shown are based on census dataprovidied. Final rates are subject to underwriting and actual enr-ollment This oomparison is for illustrative purposes only. The full policy and certificate of coverage Will supersede any and all materials provided herein. Page 6 of8 -.~ October 2017 Vision Comparison for City of South Miami Carrier Network Provider Network Status DON Eye Care Wellness Eye Exam Frequency Lenses Single Vision up to $25 Bifocals up to $40 Trifocal up to $60 Frequency Months Frames Reimbursement , Selected Frames I I $200 allowance + 20% up to $100 I discount over I Frequency ihs Contacts Reimbursement Medically Necessary up to $210 Elective Contacts up to $160 Contribution Type Participation Requirements Rate Guarantee Rates Employee Employee + Spouse Employee + Child 60 I $5.61 10 $11.21 10 $12.01 Family 6 Monthly Total Annual Total % Change in Total Annual Premil m $ Change in Monthly Premium by Plan $ Change in Total Annual Premiu m 'In-Network DON Reimbursement $0 Copay up to $30 $0 Copay up to $50 $0 Copay up to $65 Every 12 Months I Reimbursement I $180 allowance + 20% up to $70 I discount over ~1I"ft@'teB~M_SS@ : ilM8i Reimbursement 100% up to $210 $180 allowance up to $145 $8.14 32,54% ~ $220,42 $2,645,04 I In-Network DON $10 Copay up to $52 Every 12 Months Reimbursement $10 Copay up to $55 $10 Copay up to $75 $10 Copay up to $95 Every 12 Months Reimbursement .;.';: $130 allowance + 20% up to $57 discount over '\~ I Every 24 Months 100% $130 allowance $5.75 $11.49 $12.31 Reimbursement up to $210 up to $105 _. 2;50% ---~ $16,96 $203,52 Rates sh,own are based on census data provided!. Final rates are subject to underwritirl1gand actual ·enrollment. This comparison is for illustrative purposes only. The full pDlicy and certificate of cDverage will supersede any and all materials provided herein. Page 5 of8 ---------------~~==::=:~~~~~~~~iiiiiiiiiiiiiiii~~~~~ 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 i FrequencY Contacts I Medically Necessary Elective Contacts Contribution Type PartiCipation Requirements Rate Guarantee Rates Employee 60 Employee + Spouse 10 Employee + Child 10 Family 6 Monthly Total Annual Total % Change in Total Annual Premil m $ Change in Monthly Premium by Plan $ Change in Total Annual Premiu m OON Reimbursement up to $25 up to $40 up to $60 Months $200 allowance + 20% discount over discount over $11.21 $12.01 $18.09 $1 $8 Reimbursement up to $100 up to $210 up to $160 In-Network $0 Copay $0 Copay $0 Copay $0 Copay Months $180 allowance + 20% discount over 100% $180 allowance $23.34 $37.34 up to $30 up to $50 up to $65 .:;~:' up to $70 ,,~ up to $210 up to $105 272.60% -I $1,846.42 $22,157.04 Rates sllown a,re based on census data pro-vided. Final rates are subject to underwriting and actual enrollment. Th,is comparison is fDr illustrative purposes Dnly. The full policy and certificate of CDv·erage will supersede any and all materials pro-vided Ilerein. ---------------~--.~:------::---~-:::--.•• --.-:-~::-.-.-::-:::-.--.=,-~.:;:;:.--'.-----"-'-~::---=--.-~:: Page 8 of8 '"';~"-~-,_-'0-,0.--=",:';" ;~-~c';~";';~."i;';"-;-":;: ~~;:~~~.~~-,--