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Res No 113-24-16218RESOLUTION NO. 113-24-16218 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 ELIGIBLE EMPLOYEES AND PARTICIPATING RETIREES FOR FISCAL YEAR 2024-25 IN THE APPROXIMATE PREMIUM AMOUNT OF $18,490; PROVIDING FOR IMPLEMENTATION, CORRECTIONS, AND AN EFFECTIVE DATE. WHEREAS, the City of South Miami (the "City") is in need of dental insurance coverage for eligible employees and participating retirees for Fiscal Year (FY) 2024-25 ("Services't and WHEREAS, the City, through its insurance broker of record, US-I Insurance Services Inc. (the "Insurance Broker") solicited quotes from various dental insurance carriers; and WHEREAS, City Staff worked with the Insurance Broker to renegotiate its existing plan or find an acceptable alternative plan from different carriers; and WHEREAS, based upon the quotes received 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 FY 2024-25 at an approximate annual premium cost to the City of $18,490, all as set forth in the City Manager's 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 FY 2024-25 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. Page 1 of3 Res. No. l 13-24-16218 NOW THEREFORE, BE IT RESOLVED BY Tllli MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, AS FOLLOWS: Section 1. Recitals. The above-stated recitals are true and correct and are incorporated herein by this reference. Section 2. Authorizing City Manager to Engage Cigna for the Services. The City Commission hereby authorizes the City Manager to engage Cigna for dental insurance coverage for FY 2024-25 , at an approximate premium cost to the City of $18,490, all as set forth in the City Manager's Memorandum presented with this Resolution. The premium amount shall be charged to the designated departmental budget line items as proposed in the FY 2024-25 budget. Section 3. Implementation. The City Manager is hereby authori z ed to take any and all necessary action to implement the purposes of this Resolution, including executing any necessary agreement(s) with Cigna for the Services, subject to the approval of the City Attorney as to form and legal sufficiency. Section 4. Corrections. Conforming language or technical scrivener-ty pe corrections may be made by the City Attorney for any conforming amendments to be incorporated into the final resolution for signature. Section 5. Effective Date. This Resolution shall become effective immediately upon adoption. PASSED AND ADOPTED this 20th day of August 2024. ATIEr g cny ~~ APPROVE~--M€_P Page 2 of3 Res . No. 113-24-1 6218 READ AND APPROVED AS TO FORM, LANGUAGE, LEGALITY AND EXECUTION THEREOF WEIS &BI .L. CITY ATTORNEY COMMISSION VOTE: Mayor Fernandez: Vice Mayor Bonich: Commissioner Calle: Commissioner Liebman: 4-0 Yea Absent Yea Yea Commissioner Corey: Yea Page 3 of3 Agenda Item No:18. City Commission Agenda Item Report Meeting Date: August 20, 2024 Submitted by: Samantha Fraga-Lopez Submitting Department: Human Resources 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 ELIGIBLE EMPLOYEES AND PARTICIPATING RETIREES FOR FISCAL YEAR 2024-25 IN THE APPROXIMATE PREMIUM AMOUNT OF $18,490; PROVIDING FOR IMPLEMENTATION, CORRECTIONS, AND AN EFFECTIVE DATE. 3/5 (CITY MANAGER-HUMAN RESOURCES & RISK MANAGEMENT DIVISION) Suggested Action: Attachments: Memo - 2024-25 Dental Insurance.docx 49E7340-Reso Authorizing CM to Engage Cigna for Purchase of Dental Insurance CAv2.DOCX Dental Renewal Rates.pdf Sunlife Denial to Quote Email (002).pdf DTQ Lincoln.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 20, 2024 SUBJECT: Dental Insurance for Eligible Employees and Participating Retirees for Fiscal Year (FY) 2024-25 RECOMMENDATION:Authorize the City Manager to engage Cigna Healthcare for the purchase dental insurance for eligible employees and participating retirees for Fiscal year 24-24. BACKGROUND:The City’s Broker of Record, US-I Insurance Services Inc., solicited quotes from Cigna Healthcare,United Healthcare,Lincoln insurance, and Sun Life Insurance for the dental insurance coverages for South Miami eligible employees and participating retirees for FY 2024-25. Cigna Healthcare (“Cigna”)is the City’s current dental insurance carrier. The City currently contributes $9.99 per eligible employee, per month, toward dental insurance coverage. For the City’s renewal Cigna quoted a substantially similar and rich plan to United Healthcare and Lincoln Insurance and Sun Life Insurance issued Decline to Quote letters. Upon review of the Cigna and United plans, it was determined that Cigna offers a wider network of providers and would allow for continuity of service by City employees. The employer-paid DHMO plan was quoted at a $11.33 per month (approximately $18,490.56 based on the budgeted eligible employees). AMOUNT:The estimated total annual premium cost for dental insurance benefits paid by the City would be approximately $18,490 based on the budgeted full-time positions in FY 2024-25. ACCOUNT:Premium charges for dental insurance coverages will be charged to the designated departmental budget line items as proposed in the FY 2024-25 budget. 2 CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER ATTACHMENTS:Ancillary Benefits Market Comparison Proposed Resolution 3 7um. City of South Miami Dental Plan Benefit Outline and Cost Summary October 1, 2024 Renew, Benefit Outline Carrier Plan Type Deductible (Individual/ Family) Waived For Preventive Annual Maximum Max Rollover Preventive Services Applies to Ann. Max. Basic Services Major Services Endodontics / Periodontics Implants Orthodontia Eligibility Lifetime Maximum Waiting Periods (Prev. /Basic/ Major) Non-Network Deductible (Individual/ Family) Annual Maximum Prev. /Basic/ Major Rates & Total Cost Base B-up Employee 32 45 Employee + Spouse 4 13 Employee+ Child(ren) 3 9 Employee+ Family 4 9 Total Employees 43 76 Annual Subtotal Percent Change by Plan Annual Total Change From Current Percentage Change Req. Participation Rate Guarantee Notes 1. Enrollment Source: Cigna Dental Renewal ONFIDENTIAL I© 2024 USI Insurance Services. All rights reserved. Current Base Buy-up CIGNA CIGNA Managed Dental Dental PPO $0/$0 $50/ $150 Yes Yes Not Applicable $5,000 Not Included Not Included Various copays 100% Yes Various copays 80% Various copays 50% Various copays Basic Various copays Major Various copays 50% Various copays Children Only $1,000 Late Entrant MAC $50/ $150 $5,000 100%/80%/ $9.99 $30.54 $17.82 $63.75 $25.23 $71.85 $36.38 $112.71 $7,346 $46,369 $53,715 Current Current Until 10/1/2024 Until 10/1/2024 Renewal Option 1 Base Buy-up Base Buy-up CIGNA CIGNA UnitedHealthcar UnitedHealthcar Managed Dental Dental PPO Managed Dental Dental PPO $0/$0 $50/ $150 $0/$0 $50/ $150 Yes Yes Yes Yes Not Applicable $5,000 Not Applicable $5,000 Not Included Not Included Not Included Not Included Various copays 100% Various copays 100% Yes Yes Various copays 80% Various copays 80% Various copays 50% Various copays 50% Various copays Basic Various copays Basic Various copays Major Various copays Major Various copays 50% Various copays 50% Various copays Children Only Various copays Children To Age $1,000 $1,000 Late Entrant I TBD MAC MAC $50/ $150 $50/ $150 $5,000 $5,000 100%/80%/ 100%/80%/ $11.33 $34.81 $10.46 $32.12 $20.22 $72.67 $18.30 $67.05 $28.63 $81.90 $22.65 $75.57 $41.29 $128.15 $28.75 $118.54 $8,334 $52,819 $7,090 $48,768 13.4% 13.9% -3.5% 5.2% $61,153 $55,859 $7,438 $2,144 13.8% 4.0% Current Current Current current Until 10/1/2025 Until 10/1/2025 Until 10/1/2025 Until 10/1/2025 From:Lisa Calzadilla To:Gonzalez, Jazmin; Howard Aberman Cc:Fraga-Lopez, Samantha; Kurt Cushing Subject:RE: Ancillary quote and summary Date:Monday, August 12, 2024 4:55:13 PM Attachments:image005.png image007.png image009.png EMAIL RECEIVED FROM EXTERNAL SOURCE Hi Jazmin, Please see below from SunLife. Lisa Calzadilla Employee Benefits Consultant USI Insurance Services 201 Alhambra Circle, Suite 900, Coral Gables, FL 33134 lisa.calzadilla@usi.com | www.usi.com ® c: 305.962-6976 8 TO: USI Insurance Services FROM: Lincoln Financial Group DATE: August 12, 2024 RE: City of South Miami Thank you for giving Lincoln Financial Group Insurance Company the opportunity to review the specifications for the above group. Unfortunately, we are unable to offer a proposal for this very important client due to group demographics. It is with much regret our response is unfavorable; however, please keep us in mind for future cases. Again, thank you very much for thinking of us. Lincoln Financial Group Abe Falkowitz Senior Account Director 954 599-5243 9