Res No 099-23-16032RESOLUTION NO. 099-23-16032
A RESOLUTION OF THE MAYOR AND CITY
COMMISSION OF THE CITY OF SOUTH MIAMI,
FLORIDA, AUTHORIZING THE CITY MANAGER TO
ENGAGE CIGNA HEALTHCARE FOR THE PURCHASE
OFDENTALINSURANCECOVERAGEFOREMPLOYEES
AND PARTICIPATING RETIREES FOR FISCAL YEAR
2023-2024; PROVIDING FOR IMPLEMENTATION,
CORRECTIONS, AND AN EFFECTIVE DATE.
WHEREAS, the City of South Miami (the "City") is in need of dental insurance coverage
for full-time employees and participating retirees for Fiscal Year 2023-2024 ("Services"); and
WHEREAS, the City, through its insurance agent of record A & A Insurance Services,
Inc. ("A & A Insurance"), solicited quotes from various dental insurance providers; and
WHEREAS, City Staff worked with A & A Insurance to renegotiate its existing plan or
find an acceptable alternative plan from alternative carriers; and
WHEREAS, based upon the quotes and City Staffs recommendation on the most
beneficial plans available, the City Commission desires to approve the purchase of the Services
from Cigna Healthcare ("Cigna") for Fiscal Year 2023-2024, all as set forth in the City Manager
memorandum presented with this Resolution; and
WHEREAS, the City Commission further desires to authorize the City Manager to execute
any necessary agreements with Cigna for the Services; and
WHEREAS, the premium amount shall be charged to the designated departmental budget
line items as proposed in the Fiscal Year 2023-2024 budget; and
WHEREAS, the City Commission finds that this Resolution is in the best interest and
welfare of the City, its employees and participating retirees.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, AS FOLLOWS:
Page 1 of3
Res. No. 099-23-16032
Section 1. Recitals. The above-state d recita ls a re tru e a nd coIT ect a nd are in co rp orated
he rein by th is re ference.
Section 2 . Authorizing City Manager to E ngage Cigna for the Services. The C ity
Comm issio n hereby authorizes the C ity Ma nager to e ngage C igna for the Serv ices for Fi sca l Year
2023 -2024, a ll as set fo rth in th e City Manager memora ndum presented w ith this Resolu tion. The
pre mium amount s ha ll be charged to th e des ig nated d epartme ntal budget lin e ite m s a s proposed in
the Fiscal Year 2023-2024 budget.
Section 3. A uthorization. T he C ity Manage r is he reby autho ri zed to enter in to a ny
necessa ry agreeme nts w i th C igna to exec ute th e policy , s ubj ect to the appro va l o f the City A ttorney
as to form and legal s uffic iency.
Section 3. Implementation . T he C ity Man ager is her eby a utho ri ze d to take a ny and
all necessary action to impl e ment the p urposes of thi s R esolu tion.
Section 4. C orrections. Confonn ing language o r technical scri ve ner-type co1Te ctions
may be made by the City A ttorney for a ny conforming a mendme nts to be incorporated into the
final resolut io n for s ig nature.
Section 5. Effective Date. T hi s Reso luti on s hall beco me effective immedi ate ly upon
adoption.
PASSED AND ADOPTED this 15 th day of August, 2023.
ATTEST:
c~\~
READ AND APPROVED AS TO FORM ,
LANGUAGE, LEGALITY AND
EXECUTION THEREOF
COMMISSION VOTE:
Mayor Fernandez:
V ice Mayo r Bonich:
Commissio ne r Calle:
Page 2 of 3
4 -0
Yea
out of room
Yea
Res. No. 099-23-16032
WEIS
& B1ERMAN, P.L.
CITY ATTORNEY
Commiss ioner Li e bman: Yea
Commissioner Corey: Yea
Page 3 of 3
Agenda Item No:4.
City Commission Agenda Item Report
Meeting Date: August 15, 2023
Submitted by: Samantha Fraga-Lopez
Submitting Department: City Manager
Item Type: Resolution
Agenda Section:
Subject:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA,
AUTHORIZING THE CITY MANAGER TO ENGAGE CIGNA HEALTHCARE FOR THE PURCHASE OF DENTAL
INSURANCE COVERAGE FOR EMPLOYEES AND PARTICIPATING RETIREES FOR FISCAL YEAR
2023-2024; PROVIDING FOR IMPLEMENTATION, CORRECTIONS, AND AN EFFECTIVE DATE. 3/5 (CITY
MANAGER-HUMAN RESOURCES)
Suggested Action:
Attachments:
Memo_Dental_23-24.docx
4721289_Dental_Insurance.docx
Dental Comparison.pdf
DTQ AvMed.pdf
DTQ Florida Blue.pdf
1
CITY OF SOUTH MIAMI
OFFICE OF THE CITY MANAGER
TO:The Honorable Mayor, Vice Mayor & Members of the City Commission
FROM:Genaro “Chip” Iglesias, City Manager
DATE:August 15, 2023
SUBJECT: Dental Insurance for Full-Time Employees and Participating Retirees for FY 23-
24
RECOMMENDATION:City Staff recommend the City purchase dental insurance from Cigna.
BACKGROUND:The City’s agent of record, A&A Insurance, solicited quotes from Humana,
Aetna, Cigna, and Florida Blue,for the dental insurance coverages for
South Miami full-time employees and retirees for the 2023 –2024 Fiscal
Year.
Humana, the City’s current dental insurance carrier’s renewal rate,
represented a 0% increase from last year’s rate for the employer-paid
DHMO dental plan and a 7.73% increase on the elective, employee-paid
DPPO plan.The Human plan has rich benefits, but the Personnel Division
has received feedback from employees, that the network of providers is
limited.The City currently contributes $8.49 per eligible employee, per
month, toward dental insurance coverage.
Cigna quoted a substantially similar and rich plan, which provides a wider
network of providers. The employer-paid DHMO plan was quoted at a
$1.50 increase per month, per enrolled employee (based on current
enrollees, the increase is approximately $2,000 per year).The employee-
paid DPPO plan was quoted at a 14.52% decrease vs. current and a 20.66%
decrease over the Humana renewal.
Based on the plan, the network, and the cost associated, the City
recommends purchasing dental coverage for FY23-24 from Cigna.
AMOUNT:The estimated total annual premium cost for dental benefits paid by the
City would be approximately $16,000 based on the budgeted full-time
positions in FY 23-24.
2
CITY OF SOUTH MIAMI
OFFICE OF THE CITY MANAGER
ACCOUNT:Premium charges for health insurance coverages will be charged to the
designated departmental budget line items as proposed in the Fiscal Year
2023-2024 budget.
ATTACHMENTS:Proposed resolution
Comparison Dental
3
7Current I Renewal Humana DHMO FL DHMO / Pn,paid HD205 In Network Preventative Services See Copay Schedule Basic Services See Copay Schedule Endio/Perio see Copay Schedule Major Services See Copay Schedule Orthodontia Benefit See Copay Schedule Implants See Copay Schedule Deductible None Family Deduc1ible None Maximum Annual Benefit None OON Reimbursement Ra1es ! Current Rates RenewalRaM ! Employee 35 $8.49 $8.49 46 Employee & Spouse 4 $16.99 $16.99 12 Employee & Chlld(ren) 6 $19,11 $19.11 2 Family 4 $30.74 $30.74 s Total Monthly 49 $602.73 $602.73 •• vs.Cunent Percentage • O.OO'lf, • South,Miami 1111 UtYUI Pll,\C:.·\N111\.11':{, Dental Market Analysis October 1, 2023 Current / Renewal Humana DPPO Traditional Pn,fe~ 14 INFS 100/80/50 In Network Out of Ntwk 100% 100% 90% &0'1, 80% &0'1, 50'1, 50% SO% to $1,000 (ded does not apply} Child up to age 19 SO% $50 $50 $150 $150 Unhm1ted MAC Cunent Rates Renewal Rates ! $35,73 $38.80 35 $74,58 $79.73 • $84.05 $89.85 6 $131.86 $140.!16 • $3,365.94 $3,626.06 49 vs.Current 7.73% .. Presented by: Ana Roque INSU~VICES f../r,...,J/""'--1"7".;G ....... -,. Proposed Plan Proposed Plan ::_y~Cigna .•. ~(~Cigna OHMO DPPO Demal ca ... Access Plus GC In Network In Networtl Out of Network See Copay Schedule 100'1, 100'!, See Copay Schedule 80',o &0% See Copay Schedule g()',. 10% See Copay Schedule 50'1, SO'I, See Copay Schedule 50% to $1,000 (ded does not apply) Child up to age 19 See Copay Schedule 50% after ded to $5,000 None $50 $50 None $150 $150 None $5,000 MAC Proposed Ra1" ! Proposed Voluntary Rates $9.99 46 $30.54 $17.82 12 $83.75 $25.23 2 $71.85 $38,38 5 $112 71 $717.83 65 $2,8TT.09 vs.Current I vs.Renewal vs.Current I va. Renewal 19.1()'1, I 19.10% ,. -14.52% I -20.66'1,
8~ Av Med Embrace better health~ ~ August 3, 2023 Dan Wollansky Warner Pacific 1111 Suite 100 Miami, FL 33178 RE: City of South Miami Dear Dan: Thank you for giving us the opportunity to quote the health care benefits for your client. While we appreciate the opportunity, we are unable to provide a quote at this time based on AvMed not being competitive in comparison to their renewal rates with their current carrier. However, we hope to assist you in the near future on another quote. If you have any questions, please do not hesitate to call me. Respectfully, Iliana 9,f.enentfez Iliana Menendez Large Group Sr. Sales Representative 786-306-4170 9400 S. Dadeland Boulevard. Miami. FL 33156 I 800.432.6676 I AvMed.org
9July 31st, 2023 Florida Blue 4800 Deerwood Campus Parkway Jacksonville, FL 32246 Re: RFP for City of South Miami To Whom It May Concern, Please allow this letter to serve as confirmation that Florida Blue's rates are not competitive. If you have any questions or concerns, please do not hesitate to contact me. Thank you, Adelisa Jimeno I Mid-Market Account Executive -Sales ,:'; (w) 954-714-3611 I '' u (c) 954-290-8280 I r8I Adelisa.Jimeno@floridablue.com