Loading...
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