Exh 8DAGIJNDA ITI;NI #3D
JUNi 27, 200
CITY OD, ATLANTIC BI+/ACH
CITY CONINIIS5IONER MEETING
STAI'D' REPORT
AGENDA ITEIVI: Approve renewal of employee Health Insurance with Aetna
effective October 1, 2005 for a one year period and retain the
current benefits and City/employee contribution ratios.
DATE: June 21, 2005
SUBMITTI';D BY: George Foster, Human Resource Manager
BACI~GROUND: In September 2004, the City changed health insurance from BC/BS
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
' health insurance to be the cost of the HMO Employee Only health
insurance plus 55% of the HMO difference for any other
insurance, i.e., Employee PPO; Employee/Child(ren); Employee/
` Spouse or Employee/Family, that the employee selects.
This is the City's first renewal with Aetna and Aetna has provided
a renewal rated to the City with a +10.5% premium increase.
BUDGET:. Funds for this action will be included within the proposed 2005-
2006 budget.
ATTACHMENT: Current and proposed City /Employee cost information.
RECOMMENDATIONS: That the City Commission approve renewal of employee health
insurance with Aetna effective October 1, 2005 for a one year
period and retain the current benefits and City/employee
contribution ratios.
REVIEWED BY CITY MANAG
CURRENT
EMPLOYEE
COST OI' HEALTH INSURANCE
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AGENDA ITEM #3D
JUNE 27, 2005
1~0 58 Employee 9 Employeev ' 17 vEmployee 15 Employee
* Onl + Child + S ouse ~k'k + Famil
TOTAL $ 273.68 $ 511.97 $ 608.52 $ 799.35
CITY PAID $ 273.68 $ 404.73 $ 457.84 $ 562.79
EMPLOYEE $ 0.00 $ 107.24 $ 150.68 $ 236.56
PER PAY * $ 0.00 $ 53.62 $ 75.34 $ 118.28
QPOS 3 Employee 0 Employee 3 Employee 1 Employee
HMO/POS Onl + Child *** + S ouse + Famil
TOTAL $ 298.45 $ 558.29 $ 663.61 $ 871.60
CITY PAID $ 273.67 $ 404.73 $ 457.83 $ 562.80
EMPLOYEE $ 24.78 $ 153.56 $ 205.78 $ 308.80
PER PAY * $ 12.39 $ 76.78 $ 102.89 $ 154.40
PROPOSED
EMPLOYEE
COST OI+' HEALTH INSURANCE
Frrrrmr~~r.. ~nim rn~
HMO
58 Employee
* Onl
9 Employee
+ Child ~, ~.,
17 Employee
+ S ouse
15 Employee
*'~ + Famil
TOTAL $ 302.42 $ 565.73 $ 672.41 $ 883.28
CITY PAID $ 302.42 $447.23 $ 505.91 $ 621.88
EMPLOYEE $ 0.00 $ 118.50 $ 166.50 $ 261.40
PER PAY '~ $ 0.00 $ 59.25 $ 83.25 $ 130.70
EMPLOYEE
PAY PERIOD $ 0.00 $ 5.63 $ 7.91 $ 12.42
IlVCREASE
QPOS 3 Employee 0 Employee 3 Employee 1 Employee
HMO/POS ~Onl + Child *** + S ouse + Famil
TOTAL $ 329.80 $ 616.91 $ 733.29 $ 963.12
CITY PAID $ 302.42 $ 447.23 $ 505.91 $ 621.88
EMPLOYEE $ 27.38 $ 169.68 $ 227.38 $ 341.24
PER PAY **** $ 13.69 $ 84.84 $ 113.69 $ 170.62
EMPLOYEE
PAY PERIOD $ 1.30 $ 8.06 $ 10.80 $ 16.22
INCREASE
.k Does not include 5 retirees
** Includes City Manager
*** Does not include City Attorney
**** Deducted twice monthly for 24 pay periods only. Not deducted for third pay period of
months with three pay periods.
H:\oldpc\MyFles\OS-HealthlCITY & EMPLOYEE cost data 10-O1-OS.doc