Exh 4B
Agenda Item:
Date: /- /~ - ~Q
CITY OF ATLANTIC BEACH
CITY COMMISSIONER MEETING
STAFF REPORT
AGENDA ITEM: Continuation of employee benefit insurance vendors
SUBMITTED BY: George Foster, Human Resource Manager
ACTION REQUESTED: Confirm/approve the continuation of employee benefit insurance
with the current insurance companies as follows: Health (American
Heritage Life); Life (Reliastar); DentaUVision (Denticare).
BACKGROUND: The City Commission has not specifically approved the
continuation of employee benefit insurance contracts. However,
this issue was provided to interim City Manager Thompson and
Finance Director Van Liere (see attachment) for presentation to the
City Commission during the budget process. The AHL health
insurance rate increases were approved within the October 1, 1999
budget. There were no rate increases to life insurance.
Although insurance is an exception to the formal bid process per
Sec 2-336(3) of the City Code, an RFP was prepared to bid the
City's employee benefit insurance with the following proposals
received: 8 life insurance; 5 health insurance with 10 options; 8
dental insurance with 19 options; and 2 flexible benefit
administration proposals with 3 options. On August 25, 1997, the
City Commission approved award of employee health insurance to
AHL; life insurance to Reliastar; and dentaUvision insurance to
Denticare.
Although insurance is an exception to the formal bid process, Sec
2-338(10) of the City Code requires that the City Commission
approve insurance contracts in excess of $10,000. Current total
(employee/employer) health insurance premiums are approximately
$288,000 per year with life insurance premiums (employee/
employer) approximately $15,000 per year. Denticare premiums
are paid by the employee.
BUDGET: Funds for this action is currently within the approved budget.
RECOMMENDATION: That the City Commission confirm action taken during the budget
process and confirm/approve the continuation of employee health
insurance with AHL, life insurance with Reliastar, and dentaUvision
insurance with Denticare.
REVIEWED BY CITY MANAGER:
CITY OF
r~~i~ uct~c ~eac~ - ~~vtida
800 SEbIINOLE ROAD
ATLANTIC BEACH, FLORIDA 32233-5445
TELEPHONE (904) 247-5800
FAX (904) 247-5805
SUNCOM 852-5800
August 18, 1999
MEMORANDUM
TO: David Thompson, City Manager
FROM: George Foster, Human Resource Manager
SUBJECT: October 1, 1999 Health Insurance Costs
Effective October 1, 1999 AHL increased premiums as follows:
PPi /10 + 16.7 °,/o
PPO + 15.0
- With BCBS, there were only two HMO/PPO categories with one Employee rate and one
Family rate.
- With AHL, the City has four HMO categories with four HMO rates anti four PPC cater Dries
with four PPO rates.
BCBS AHL AHL AHL
CATEGORY 10/01/96 10/01/97 10/01/98 10/01/99
HMO -Employee $ 163.52 $ 123.87 $ 131.30 $153.28
HMO -Employee/Child n/a $ 210.57 $ 223.20 $260.56
HMO -Employee/Spouse n/a $ 247.67 $ 262.53 $306.48
Iii 10 - Employee/Family $ 458.86 $ 380.54 $ 403.37 $470.89
PPO -Employee $ 163.52 $ 190.62 $ 213.49 $245.51
PPO -Employee/Child n/a $ 342.28 $ 383.35 $440.85
PPO -Employee/Spouse n/a $ 381.41 $ 427.18 $491.26
PPO - Employee/Family $ 458.86 $ 586.03 $ 656.35 $754.80
For each employee enrolled within a health plan, the City pays the employee HMOlPPO ray e with
the employee paying the difference.
The following cost comparison estimates were determined by the using 100 employees within
the HMO and 10 employees within the PPO.
COST TO CITY:.
NUMBER OF BCBS AHL AHL
EMPLOYEES 10/01/96 10/01/97 10/01/98
100 $ 16,352 $ 12,387 $ 13,130
10 $ 1,635 $ 1,906 $ 2,135
Totals $ 17,987 $ 14,293 $ 15,265
x 12 Months $ 215,844 $ 171,516 $ 183,180
Annual Savings* $ 44,328 $ 32,664
* Assuming no increases to BCBS premiums since 10/01/96
Savings would increase as BCBS premiums increased.
ATLANTIC BEACH & JACKSONVILLE BEACH
Effective 10/01/99
Atlantic Jacksonville
HMO RATES Beach Beach
Employee $ 153.28 $ 184.91
Employee/Child $ 260.56 $ 332.30
Employee/Spouse $ 306.48 $ 368.80
Employee/Family $ 470.89 $ 619.16
AHL
10/01/99
$ 15,130
$ 2,455
$ 17,585
$ 211,102
$ 4,824
cc: Nelson VanLiere, Director of Finance