08-04-09 Item 7South Miami
All- America City
1 f
CITY OF SOUTH MIAMI ! 1v
INCORPORATEUR OFFICE OF THE CITY MANAGER
INTER- OFFICE MEMORANDUM 2001
To: The Honorable Mayor & Members o e City Commission
Via: W. Ajibola Balogun, City Manager
From: Jeanette Enrizo, Human Resource M n
Date: July 28, 2009 nda Item No.:
Subject: Authorizing One Year Contract Renewal with AVMED Health Care
REQUEST: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF SOUTH MIAMI, FLORIDA, AUTHORIZING THE
CITY MANAGER TO RENEW THE CONTRACT WITH AVMED TO
PROVIDE GROUP HEALTH INSURANCE FOR CITY OF SOUTH
MIAMI FULL TIME EMPLOYEES TO BE CHARGED TO
DEPARTMENTAL ACCOUNT NUMBERS RESPECTIVELY;
PROVIDING FOR AN EFFECTIVE DATE.
Reason/Need: We have received renewal rates from our current group health insurance
carrier, AVMED. AVMED initially proposed a 10.6 % increase; however, we were
successful in negotiating the rate increase to 4.2 %. The City had $515,689 in claims vs.
$683,602 in premium. Although, renewal rates were received from AVMED, the Agent
of Record recommended that we seek out bids from other carriers to ensure that we are
being offered competitive rates. Our Agent of Record solicited bids from eight
companies. Bids were received from the following companies:
AETNA
AVMED
BCBS
CIGNA HEALTHCARE
HUMANA
NHP
UNITED HEALTH CARE
VISTA
Submitted proposal
Submitted proposal
Declined to quote
Submitted proposal
Submitted proposal
Submitted proposal
Submitted proposal
Submitted proposal
The Insurance Committee met to review and compare all the different alternatives. The
Committee Members that participated were as follows:
Maria Garcia — City Manager's Office
Maria Virguez — Finance
Carol Bynum — Code Enforcement (AFSCME)
George Greene — Motor Pool (AFSMCE)
Captain Lisa Morton — Police (PBA)
James McCants — South Miami Community Redevelopment Agency
Maria Stout -Tate- Planning
Lorenzo Woodley — Parks and Recreation
Michelle Egues — Human Resources
Slaven Kobola — Public Works and Engineering Department
The Insurance Committee made a recommendation to the City Commission to renew with
AVMED for another year without any changes to the current benefit plan design.
LOW HMO
EE
$372.84 (City portion)
EC
$659.93
ES
$734.50
FAM
$1099.88
HIGH HMO POS
$432.52
$502.01
$765.56
$888.55
$852.06
$988.95
$1275.93
$1480.91
With the Triple Option, the City would cover the employee rate of $372.84 which is a
(4.2 %) increase. Based on current enrollment assumptions (134' FTE), the annual
increase from this year to next year would be approximately $ 24,184.48. Current staffing
levels are at 151 full time employees.
Cost:
Funding Source: Departmental Account Numbers
Backup Documentation:
Ll Proposed Resolution
• Proposals from Insurance Vendors
• AVMED Contract
I RESOLUTION NO.:
2
3 ARESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
4 SOUTH MIAMI, FLORIDA, AUTHORIZING THE CITY MANAGER TO RENEW
5 THE CONTRACT WITH AVMED TO PROVIDE GROUP HEALTH INSURANCE
6 FOR CITY OF SOUTH MIAMI FULL TIME EMPLOYEES TO BE CHARGED TO
7 DEPARTMENTAL ACCOUNT NUMBERS RESPECTIVELY; PROVIDING FOR
8 AN EFFECTIVE DATE.
9
10 WHEREAS, the Agent of Record (Employee Benefits Consulting Group) secured 8 bids
11 for the City's Group Health Insurance and recommended AVMED as the lowest responsive
12 bidder; and
13
14 WHEREAS, the Insurance Committee compared the insuran ce rates, benefit plan
15 designs, provider network as well as our previous claims experience /ratio; and
16
17 WHEREAS, the Insurance Committee unanimously voted to renew with AVMED for
18 another year; and
19
20 WHEREAS, the City Commission wishes to renew Group Health Insurance with
21 AVMED to all full -time employees; and
22
23 WHEREAS, with the selection of AVMED, the designated Agent of Record is
24 Employee Benefits Consulting Group until contract expiration or until otherwise determined by
25 either party.
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27 NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY
28 COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, THAT;
29
30 Section 1. The contract shall be effective October 1, 2009 and shall be renewable on an
31 annual basis.
00
33 Section 2. This engagement is at will and shall continue until either party terminates the
34 engagement by giving written notice to the other party. The City shall not be charged for agent
35 of record services; Employee Benefits Consulting Group shall be compensated by the insurer. .
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Section 3. This resolution shall take effect immediately upon approval.
PASSED AND ADOPTED this day of , 2009.
ATTEST:
CITY CLERK
READ AND APPROVED AS TO FORM:
CITY ATTORNEY
APPROVED:
MAYOR
Commission Vote:
Mayor Horace Feliu:
Vice Mayor Brian Beasley:
Commissioner Velma Palmer:
Commissioner Valerie Newman:
Commissioner Lew Sellars:
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CITY COMMISSION
Insurance Workshop
Workshop date: July 21, 2009 Time: 6:30 p.m.
Next Regular Meeting date: July 21, 2009• Time: 7:30 p.m.
6130 Sunset Drive, South Miami, FL Phone: (305) 663 -6340
1. Employees' Health Insurance Workshop - Benefit /Price
Comparison Overview
2. Adjournment: 7:30 p.m.
CITY COMMISSION WORKSHOP, 1
AGENDA — July 21, 2009
CITY OF SOUTH MIAMI
OFFICE OF THE CITY MANAGER
INTER - OFFICE MEMORANDUM
To: The Honorable Mayor &
Via: W. Aiibola Balogun, Cit
From: Jeanette Enrizo, Human
Date: July 17, 2009
Subject: Insurance Workshop
y Commission
Item No.:
South Miami
AH- America City
'1 I I r
zoos
On Friday, July 17, 2009, the Insurance Committee met to discuss and finalize
recommendation/selection of health insurance carrier. The following employees were
present:
Maria Garcia — City Manager's Office
Maria Virguez — Finance
Carol Bynum — Code Enforcement (AFSCME)
George Greene — Motor Pool (AFSMCE)
Captain Lisa Morton — Police (PBA)
James McCants — South Miami Community Redevelopment Agency
Maria Stout -Tate- Planning
Michelle Egues — Human Resources
Slaven Kobola — Public Works
Upon further discussion and review, the Insurance Committee voted to renew with
AVMED with a 3 Tier Option (Low Option HMO, High Option HMO and POS). The
increase to the City for fiscal year 2009/2010 would be 4.2 %. The Insurance Committee
will be presenting their recommendations next Tuesday, July 21, 2009 at the Workshop.
I am forwarding all information that was provided to the Committee for your review and
consideration.
El
City o( South it4iama
MEDICAL PROPOSAL ANALYSIS
JULY 2009
Employee Benefits Consulting Group