Item 4A- Employee Benefits- Insurance 2017AGENDA ITEM:
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
Employee Benefits -Insurance
AGENDA ITEM 4A
NOVEMBER 14, 2016
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SUBMITTED BY: Catherine Berry, Esq., Human Resources Director l__b-)
DATE:
BACKGROUND:
BUDGET:
October 28, 2016
Two years ago, the City switched to United Healthcare as our health insurance
provider, which represented a $160,000 savings over the then-current Florida Blue.
Overall, the United Healthcare plans we offer have been great for the employees, and
include Mayo Clinic in network. For the 2017 renewal, however, due to two very
expensive claims, United Healthcare proposed a 26.7% increase in premiums. Our
insurance broker, Harden, "went to market" and contacted the major providers of
medical insurance serving Northeast Florida. They were able to get good rates from
Aetna and Florida Blue, but with limitations that will adversely affect the care our
employees receive. Neither Aetna nor Florida Blue's HMOs include Mayo in network
and Florida Blue no longer includes the Borland Groover Clinic.
Harden has continued to negotiate with United Healthcare, resulting in an overall
increase in premiums of less than 8%, with just a few tweaks in benefits to our
employees. The City currently pays a substantial portion of the premiums for medical
insurance and the approved budget includes a 10% increase in premiums, so this
proposal is within the budget. I have included a comparison of our current plans with
the proposed new plans.
The City also pays for basic life insurance for our employees, which includes the
valuable EAP program, and those rates remain the same.
In addition, Harden was able to negotiate good rates for the following voluntary benefit
providers, which are paid 1 00% by the employee:
Dental: Sunlife
Vision: Humana
Supplemental Life: Standard
Short Term and Long Term Disability: Lincoln
Supplemental plans: AFLAC
If these recommendations are approved, the total cost to the City for premiums paid
for health insurance, over those paid this year, is $65,744, which is under the
amount budgeted.
RECOMMENDATIONS:
1. Approve all employee insurances listed below effective January 1, 201 7 through December 31,
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2017.
AGENDA ITEM 4A
NOVEMBER 14, 2016
2. Authorize the City Manager to sign relevant insurance and insurance renewal documents:
City Sponsored:
Medical -United Healthcare
Life & Supplement Life (EAP is included)-Standard
Voluntary Products:
Dental -Sunlife
Vision-Humana
Supplemental Life-Standard
Short and long term disability-Lincoln
Supplemental Plans -AFLAC
ATTACHMENTS: Harden Presentation
REVIEWED BY CITY MANAGER: ---p;: ~f ~~
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