Item 4A - Employee Benefits-InsuranceAGENDA ITEM:
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
Employee Benefits -Insurance
AGENDA ITEM# 4A
NOVEMBER 9, 2015
SUBMITTED BY: Catherine Berry, Esq., Human Resources Director eft
DATE:
BACKGROUND:
BUDGET:
October 22, 2015
For the 2015 renewal (last year), our insurance broker, Harden, contacted the major
providers of medical, dental, vision, life & voluntary life and short-term & long-term
disability insurance serving Northeast Florida. The City currently pays a substantial
portion of the premiums for medical insurance and the total premiums for basic life
insurance, which includes a free Employee Assistance Program. The Commission last
year approved a switch to United Healthcare for our health insurance provider, which
represented a $160,000 savings over the then-current Florida Blue provider and
approved staying with Standard as our life insurance carrier.
In addition, the Commission approved the following voluntary benefit providers,
which are paid 1 00% by the employee:
Dental: United Healthcare
Vision: Remained with Humana
Supplemental Life: Remained with Standard
Short Term and Long Term Disability: Remained with Lincoln
Supplemental plans: AFLAC
Our current health insurance provider, United Healthcare, proposed a 14.2% increase
in premiums, but our broker, Harden, was able to negotiate them down to 9%, which is
within the market trend. I recommend that we remain with our existing carriers and
offer the same plans as we offer currently, as described in the attached Executive
Summary.
Ifthese recommendations are approved, the total cost to the City for premiums paid
for health insurance, over those paid this year, is $66,891, which is under the
amount budgeted. The cost to the City for basic life premiums over those paid this
year will remain the same.
RECOMMENDATIONS:
1. Approve all employee insurances listed below effective January 1, 2016 through December 31,
2016.
2. Authorize City Manager to sign related insurance renewal documents:
City Sponsored:
Medical -United Healthcare
1
Life & Supplement Life (EAP is included) -Standard
Voluntary Products:
Dental -United HealthCare
Vision-Humana
Supplemental Life-Standard
Short and long term disability-Lincoln
Supplemental Plans -AFLAC
ATTACHMENTS: Executive Summary
REVIEWEDBYCITYMANAGER:~1 U~ c?~
2
AGENDA ITEM# 4A
NOVEMBER 9, 2015
CITY OF ATLANTIC BEACH
Executive Summary
October 22, 2015
Medical
Cur rent United Healthcare Plan
Renewal United Hea lthcare Plan (9% increase )
Employee contributi o n = $183,329 or ,.,.,.,.,.,,,,...,,.t .. 1" 23 %
Life I AD&D
Current Standard lifei AD&D
Ren ewa l Standard LifeiAD&D (no change )
EAP
Recommend EAP with life-Standard ($.35/EE) (no change)
Dental
Current Unite d HealthCare Pl ans
Recommended United Hea lthCare Pla ns (2.3% Increase)
Supplemental Life I AD&D Package
Current & Recommended Standard Vol. LlfeiAD&D
VIsion
Current Hum ana
Recomm ended Hum ana (no change}
Voluntary Short and long Term Disability-Lincoln
Supp l emental Insurance Pl ans (Cancer, Accident,
Hospitalization, Critical Illness ) -AFLAC
3
$500
$24,249
$24,808
Rat es Vary by Age
$6,22 0
$6,220
Rates Vary by Age
Rate s Vary by Age
A GENOA ITEM # 4A
NOVEMBER 9, 201 5