Item 4B v~.
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CITY OF ATLANTIC BEACH
CITY COMMISSIONER MEETING
STAFF REPORT
AGENDA #4B
AUGUST 28, 2006
AGENDA ITEM: Approve renewal of employee Health Insurance with Aetna
effective October 1, 2006 for a one year period and retain the
current benefits and City/employee contribution ratios.
SUBMITTED BY: George Foster, Human Resource Manager
DATE: August 22, 2006
BACKGROUND: In September 2004, the City changed health insurance from BCBS
to Aetna after proposals from five insurance providers were
received and evaluated. This change resulted in a 44% reduction
in premium rates.
~„ The City also standardized the premium that the City pays for
employee health insurance to be the cost of the HMO Employee
Only coverage plus 55% of the HMO difference for any other
„~ insurance coverage that may be selected by the employee.
This is the City's second renewal with Aetna and Aetna has
provided the City with a renewal premium of +18.67% effective
10/01/06. The October 1, 2005 renewal premiuth was +10.5%.
BUDGET: Funds for this action will be included within the proposed 2006-
2007 budget.
~+ RECOMMENDATION; That the City Commission approve renewal of employee health
insurance with Aetna effective October 1, 2006 for a one year
period and retain the current benefits and City/employee
contribution ratios.
ATTACHMENT: Current and proposed City and Employee cost information.
REVIEWED BY CITY MANAGER:
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EMPLOYEE COST OF HEALTH INSURNCE
~"' AETNA GROUP # 322546
CITY PAYS 100% OF THE COST FOR THE HMO " EMPLOYEE ONLY" COVERAGE
~. PLUS 55% OF THE DIFFERENCE fN OTHER HMO COVERAGE AS SELECTED BY
THE EMPLOYEE. THE EMPLOYEE PAYS THE DIFFERENCE IN THE HMO AND POS
COSTS IF THEY SELECT THE POS.
2005 2005 2005 2005 2005
HMO CURRENT EMPLOYEE EMPLOYEE EMPLOYEE EMPLOYEE
ONLY & CHILD & SPOUSE & FAMILY
TOTAL BILL RATE 302.42 565.73 672.41 883.28
''""' CITY PAID 302.42 447.23 505.91 621.88
EMPLOYEE MONTHLY 0.00 118.50 166.50 261.40
PER PAiD PERIOD 0.00 59.25 83.25 13D.70
2006 2006 2006 2006 2006
;~ HMO OCTOBER 2006 EMPLOYEE EMPLOYEE EMPLOYEE EMPLOYEE
ONLY & CHILD & SPOUSE & FAMILY
TOTAL BILL RATE 358.$9 671.34 797.94 1,048.17
' CITY PAID 358.89 530.74 600.36 737.99
EMPLOYEE MONTHLY 0.00 140.60 197.58 310.18
PER PAID PERIOD 0.00 70.30 98.79 155.09
2005
POS CURRENT
TOTAL BILL RATE
CITY PAID
~'" EMPLOYEE MONTHLY
PER PAID PERIOD
2006
POS OCTOBER 2006
TOTAL 81LL RATE
CITY PAID
EMPLOYEE MONTHLY
PER PAID PERIOD
2005 2005 2005 2005
EMPLOYEE EMPLOYEE EMPLOYEE EMPLOYEE
ONLY & CHILD & SPOUSE & FAMILY
329.79 616.91 733.29 963.12
302.41 447.23 505.91 621.88
27.38 169.68 227.38 341.24
13.69 84.84 113.69 170.62
2006 2006 2006 2006
EMPLOYEE EMPLOYEE EMPLOYEE EMPLOYEE
ONLY & CHILD & SPOUSE & FAMILY
391.36 732.08 870.18 1,142.92
358.89 530.74 600.36 737.99
32.47 201.34 269.82 404.93
16.24 100.67 134.91 202.47
AGENDA #4B
AUGUST 28, 2006
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