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HomeMy Public PortalAboutReso 99-34 Employees Medical Insurance, related benefits contractsRESOLUTION NO. 99-34 A RESOLUTION OF THE VILLAGE OF KEY BISCAYNE, FLORIDA; AUTHORIZING THE VILLAGE MANAGER TO ENTER INTO CONTRACTS TO PROVIDE THE FOLLOWING EMPLOYEE MEDICAL INSURANCE AND RELATED BENEFIT PROGRAMS; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Request for Proposals (RFP) were advertised on February 26, 1999, in the Miami Daily Business Review and mailed to interested potential agents and companies; and WHEREAS, proposals were received on April 9, 1999 by the Finance Director; and WHEREAS, the Village Manager and the Finance Director reviewed each proposal and have made a recommendation; NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF KEY BISCAYNE, FLORIDA THAT THE FOLLOWING COVERAGES BE AWARDED TO THE RESPECTIVE COMPANY AS FOLLOWS: 1. Medical Insurance, including vision care, be awarded to AvMed Health Plan 2. Long -Term Disability be awarded to Guarantee Life Insurance 3. Term Life and AD&D be awarded to Standard Life Insurance Company 4. Legal Services be awarded to Pre -Paid Legal Services, Inc. 5. Cafeteria Plan be awarded to AFLAC and administered through KCI Financial Services, including dental coverage through American Dental Plan 6. Police/Firefighters Life & AD&D be awarded to The Hartford Life Insurance PASSED AND ADOPTED this 27th day ofApril, 1999. OE '•SCO sl—WA, HITA H. ALVAREZ, CMC, VILLAGE C APPROVED AS TO FORkND LEGAL SUFFICI r RICHARD J. WE SS, VILLAGE ATTORNEY Village Council Joe 1. Itasca, Mayor Gregory C. Han, Vwe Mayor Scorn Bass Martha Fdez Lo6n Broucck Alan H. Fein Mortimer Fried Robert Gtdalcowslci Director Thomas N. Zannis, CPA VILLAGE OF KEY BISCAYNE Department of Finance and Administrative Services MEMORANDUM To: C. Samuel Kissinger, Village Manager From: Thomas N. Z Finance Director Subject: Employees Insurance Benefits Date April 19, 1999 The response to our Request For Proposals (RFP) was very good and we received the following proposals: 1JEDJCALJNSURANCE: (Exhibit A) AvMed, (our current carrier) #1 & #1A Aetna, #2 Foundation Health, (from two agents) #3, #3A & #8 Prudential, (from two agents), #4 & #9 Blue Cross/Blue Shield, #5 Humana, #6 Florida League of Cities, #7, A & B HIP Health Plan of Florida, #10 Most of the companies quoted two or more types of coverages that they offer. We used a grading sheet to select the best offer and the results are summarized in Exhibit A. We recommend that AvMed's proposal (listed as #1A) be accepted. This is basically a $10.00 co -payment for each visit to the Doctors office vs the $5.00 co -payment in #1; however, there is a big savings to the employee if the higher co -payment is selected inasmuch as 9 trips to a doctor's office would have to be made before the premium savings would be offset by the higher co -payment. Most employees make 2 to 3 visits to the doctor per year. The annual savings is listed below: 85 West McIntyre Street • Key Biscayne, Florida 33149 • (305) 365-5511 • Fax (305) 365-8936 MISSION STATEMEN1 •TO PROVIDE A WE. QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT.` C. Samuel Kissinger, Village Manager Page 2 April 19, 1999 Employee single -coverage cost Employee plus one dependant Family coverage Annual Savings $ 48.36 $ 96.72 $140.28. Our recommendation is also heavily weighted by the fact that we are receiving good service frc AvMed and our employees seem to be very satisfied with their plan and the doctors network, sc we don't want to change this scenario if there is no economic benefit to do so. AvMed's premiums have only increased by an average of 5.14% and the industry average has been running over 10%. We believe that sending the RFP out to bid had the effect of keeping AvMed's quotes lower than they might have possibly been at renewal. Because Aetna and HP were so competitive, we recommend that another quote be requested from them next year. LONG TRIM DISABILITY: (Exhibit B) Hartford Life, ( our current carrier), #1 &1A Guarantee Life, #2 & #2A Standard Insurance Co., #3 & #3A Each of the above companies quoted two plans, offering a 60% replacement and a 70% replacement of an employee's regular salary. The Village currently offers the 60% plan with maximum benefit payment of $5,000 per month. The 70% plan has a $6,000 maximum payme per month. Exhibit B shows Hartford slightly ahead of Guarantee Life due to the fact that it pays benefits z average of 6 months longer than Guarantee; however Guarantee's rate is 1/3 less, ($0,62 cents per $100 vs $0.97) and we recommend that we accept Guarantee's offer, even though it does nc have a policy conversion provision at termination of employment. There are sufficient funds to cover this new coverage with Guarantee Life in the 1999 budget. LIFE AND AD4D: (Exhibit C) Standard Insurance Co., (our current carrier), #1 Hartford, #2 Guarantee Life, #3 Principal Life, #4 C. Samuel Kissinger, Village Manager Page 3 April 19, 1999 Our recommendation is that we stay with our current carrier, Standard Insurance, since all factors being considered, they offer the lowest rate. ,SHORT TERM IZ1SARILITY• (Exhibit D) Guarantee Life, #1 & #1A Hartford, #2 Standard, #3D This coverage is currently available to employees through our Cafeteria Plan with AFLAC and premiums are paid with pre-tax dollars. At present only 5 employees carry this coverage. Basically, the plan calls for a weekly salary coverage of 60%, to a $1,400 maximum. for a 13 - week duration. It is estimated that this plan would cost the Village approximately $18,000+ per year. If accepted, this would offer Village employees a new, valuable benefit; however, we are not recommending coverage at this time because an analysis should be performed to study the effect on the Village's overall benefits. DRNTA! t: (Exhibit E) American Dental Group, #1 (current coverage through Cafeteria Plan, AFLAC) MetLife, #2 Florida League of Cities, #3 Principal Financial Group, #4 Cigna, #5 & #5A We currently have 43 employees who carry this insurance through our cafeteria plan. If the Village were to offer this benefit, it is estimated that the yearly premium would be about $40,000. per year. Again, we can make no recommendation on this coverage until the overall benefits are reviewed. VISION CARE: Most of the medical plans offered vision coverage as part of their medical policy. Currently, this coverage is offered through AvMed, and as it is recommended that we accept their coverage, C. Samuel Kissinger, Village Manager Page 4 April 19, 1999 the vision coverage would remain with them. The vision coverage is minimal and it is recommended that when overall benefits are reviewed, that this coverage be enhanced. J J.GAT „SERVICES. Pre -Paid Legal (current carrier) proposal from two separate agents Legal Clubs of America, Inc. We currently have two plans with Pre -Paid Legal. The regular, family plan is priced at $14.95 per month, and the extended family plan, for police and firefighters who are exposed to greater legal liability, is priced at $23.95 per month. It is recommended that we remain with Pre -Paid Legal since one of the benefits they offer is additional hours of service, at no additional cost, when the policy is renewed. Police officers can substitute a "Law Officer's Legal Plan" at the same cost as the extended family plan. This entitles them to 24 -hour telephone access to an attorney and additional, Administrative and Tenmination Hearing representation; however, they will lose the Moving Traffic Violation representation that they now have with the extended family plan. The Chief of Police may want to study this new coverage and let us know if he considers it to t better coverage for his staff. LIFE and AD &D.. (for police and firefighters only) This coverage is mandated by Florida Statutes 112.19 and 112.91. Coverage is currently carried through The Hartford Life Insurance Company and they are the only ones who responded to our RFP. We recommend that this policy be renewed, covering only sworn law enforcement officers and fighters, and not administrative staff that are currently covered. JA-NG-TERM CARK We had no response to our RFP for this type of coverage. C. Samuel Kissinger, Village Manager Page 5 April 19, 1999 CAFETERIA PLAN (AFLAC) Our cafeteria plan, which is administered by I(CI Financial Services, Inc., also provides several policies and programs through a pre-tax program. Our employees can select the following programs (the numbers in brackets indicate the number of employees who participate in them): Short -Term Disability (5) Dental Care (43) Accident Insurance (43) Cancer insurance (26) Hospitalization (5) Intensive Care (4) Group Term Insurance (3) Medical Reimbursement Plan (10) Child Care Deductions (3) 2 w m- V m b CO 1111 fib fll fif01121q lit% 0 11 g ell 1$ ppg g. Ofg Its ig O 01010 0101 00101fA 01010101 01 00101010101 N Co A 01010101010101N01010)A 0101 01010)0101 A CO AA • 0/010/ 001010101 OINK A01A010101 NWA 0 1010) 010)010101 01011 ANA01OA A A 0 0)0100)00 NN AN 0010)0100NNA01 0) N Us CA 0101 01 O 0010 x010101010101 00011 0101 01 A. 0101 000)010)NW01010 1 000101010101010101 OON CO 000100 0a 0 01 W N 01 A A 01 A 01 N V 0 010101 o .t 01014 01041 N 01 01 A Oita W 01 .1.010101 01010101010) 01 01 01 01 01 01 N01CA01A NN01 0101011//010 CO N 01 01 01 01 01 0 A N N V 01 01 00 N A to 01 N 010 AN 01 010101010101 3 s N 0101 4. 010 101 .A. v 0) W V 01 01 + +w 18 01 01 a CO m i 01 to 01 CO CO to CO 11 0010101 ) 0 0 0 0-4 0010101 W 0 01 01 01 W 0 NU101W 0 N N N W 0 01 01 01 0 0 01 N N W 0010 101 W 0 01 01 01 41 00000 0 in ChM 001010101 001010101 0 01 N 01 CO O U1 H 2 01 N 0) 01 01 01 a 0 0 O 01 ig CA O 0101 N 0001010101 N N NN N 0010/010101 N in 01 U1 in 010101 th01010101 0)01010101010101001 Us Chi n010101010)010A 0101010101 01 0 A 01 01 0 N 01 01 01 U1 01 01 01 01 0 10 A 01010 N 0101010101010101 01 010101 NMin 010101010101 01 0 0 01 01 01 01 01 01 01 01 0101 01 01 0100010101 0101010101 01 01 0101 01 0 0 01 01 01 0 01 01 01 01 01 01 tA 01 010000101010101010101010101 0101010101 1)01010101 01010101 01 010A0101 0101 01010101010101 010010101 00101010101010101 01 0 01 01 01 01 01 01 01 01 01 01 01 01 I; 1 N A EVALUATION MATRIX 1=POOR /10=BEST 5 = HARTFORD PROPOSAL #1 #1A #2 #2A #3 #3A 60% 70% 60% 70% 60% 70% ElImin. Period - 90 days 5 5 5 5 5 5 Duration: Prior 62 yrs old to Age 65 5 6 4 4 5 5 Age 62 = 42mos pmt 5 6 5 5 5 5 Age 64 = 30mos pmt 5 6 5 5 5 5 Age 66 = 21mos pmt 5 6 5 5 5 5 Age 68 = 15mos pmt 5 6 5 5 5 5 Dver 69 = 12mos pmt 5 7 5 5 5 5 Max Mo Benefit $5,000 5 7 7 7 6 6 Min Mo Benefit $50 5 5 5 5 7 7 3enefit % = 60% 5 7 5 7 5 7 Total 50 61 51 53 53 55 60.37 PER $100 6Q..97 PER $100 5 4 3 5 7 4 Total 5 5 4 7 3 4 imitations: 3onus/ Overtime 5 5 5 6 5 5 )her: Workers Comp 5 5 5 5 5 5 letirement Plan 5 5 5 5 5 5 're -Exist Cond 6/6/12 5 5 7 7 6 6 ;onversion - Yes 5 5 0 0 0 0 Joe Rehab - Yes 5 5 5 5 5 5 100% Participation 5 5 5 5 5 5 Total 35 35 32 33 31 31 RFPLTD99.WK4 EXHIBIT B 'i � .: I���_ re /�l�lE 1�.r�F :i V�1 iaE�., �)�- 4s(R`;A EVALUATION MATRIX 1=POOR /10=BEST 5 = STANDARD PROPOSAL #1 #2 #3 #4 2 Times Annual Earnings 5 5 5 5 Active Max =$250,000 5 5 5 5 Retired Max= $150,000 0 0 0 0 Retired AD&D - None 5 5 5 5 Disab. Premium Waiver 5 5 5 4 Reduction: 33% @ 70 4 4 5 4 50% ©75 4 4 5 4 Living Benefit Option 5 5 5 5 Total 33 33 35 32 Life @$0.27 per $1,0001m 5 4 3 3 AD&D $0.05 " " 5 5 4 3 Total fife @ 100% One Item © 50% Two +@100% Conversion - Yes 100% Participation Total 10 9 7 6 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 25 25 25 25 RFPLAD&D99.W EXHIBIT C EVALUATION MATRIX 1=POOR /10=BEST f kti,�nn� (1E1 0) (.:)1(%;4t et� iE S `f , S4t U r. 5 = NEW POLICY PROPOSALS #1 /MA #2 #3D 13w 26w 13w 12wk Elimination Period: 1 Day For injury 5 5 0 3 B Days for Sickness 5 5 0 3 Duration: 13 Weeks 5 5 4 26 Weeks 5 Max Wk Benefit $500 5 5 10 10 Min Wk Benefit $50 5 5 2 6 Benefit % = 60% Salary 5 5 5 5 Total 30 30 22 31 $10 Benefit Per/Mo: 30 or Less © $0.581$0.69 5 5 4 10 10-44 © $0.74/ $0.91 5 5 4 10 30-54 @ $0.94/ $1.19 5 5 4 10 30-64 $1.38/ $1.82 5 5 4 10 70-74@$2.08/$2.72 5 5 4 10 Total 70 25 20 50 Jmitations: 3onus/ Overtime 0 0 0 0 /Yorkers Comp -Excluded 0 0 0 0 Retirement Plan -Excluded 0 0 0 0 ore -Exist. Cond. 12/12 Mo 0 0 3onversion - Yes 0 0 0 0 Voc Rehab - Yes 0 0 0 0 Min 10 Empl or 25% Enroll 5 5 0 0 Total 5 5 0 0 RFPST[399.WK4 EXHIBIT D RFPDENTAL99.V EVALUATION MATRIX 1=POOR /10=BEST 5 = AMERICAN DENTAL (with KCI) EXHIBIT E PROPOSAL #1 #2 #3 #4 #5 5A Section 125 Plan (Pre -Tax * * . Deductable $50. 5 5 5 5 8 8 Waived for Preventive 5 5 5 5 5 Prev & Diagnostic 100% 5 5 5 5 5 Basic Service 80% 5 5 5 5 5 5 Major Restorative 50% 5 5 5 5 5 5 Max Benefit $1,500 5 3 3 5 Orthod Care to 19 Yrs 5 5 5 5 5 5 Max Orthod. $1,599 5 3 3 3 6 6 Total 40 31 36 33 39 39 Employee $11.00/Mo 5 3 2 2 4 5 Plus One $20.50/Mo 5 3 4 3 4 5 Family $27.50/Mo 5 1 1 1 2 3 Root Canal $240.00 5 4 4 4 8 7 Crown $240.00 5 4 4 3 3 4 Office Visit $5.00 5 6 6 Total Cafetirla Plan Conversion - Yes Voluntary Plan Out of Net Work 30 15 15 13 27 30 5 0 0 0 5 5 5 0 0 0 0 0 5 1 1 1 4 4 0 5 5 0 0 Total 15 6 1 6 9 9 w MIAMI DAILY BUSINESS REVIEW Published Daily except Saturday, Sunday and Legal Holidays Miami, Dade County, Florida. STATE OF FLORIDA COUNTY OF DADE: Beton the undersigned authority personally appeared Sookie Minns, who on oath says that she is the Vice Pasldent of toga' AdrerWing of the Mlaml Daily Business Rwlsw filch /Rand Review, a dilly (except Saturday, Sunday and Legal Holidays) newspaper, published et Miami in Dade County, Floride that the attached copy of advertisement, baing a Lead Advertisement of Notice in the matter of THE VILLAGE OF KEY BISCAYNE ACCEPTING PROPOSALS FOR HEALTH CARE AND LIFE INSURANCE FOR ITS EMPLOYEES In tine xxxxx wq pobUejlefif In said paper in Ulf issues of Court, Affiant ha'ther says that the said Misini Daily Business Review is a newspaper sued at Miami M said Dade Amide.CountyAmide. and that said eewspapsr has heretofore ' been continuously published in said Dade Coun, Flodda, each day day Sunday add Legal and has been entered as second class malt mutter at the post office In Miami in said Dads County, Fiodde, for a period of one preceding the first publication of the attached and of hsnt further says that she has nor promised any person, Ono or corporation rebate, commalabn or refund for the purpose this for publication in the said THE V1LLAGE OR.KEY BISCAYNE.' ihA Ytltago,of Koy$tseayne.4:accopw?9 p er: : health and-pfg°ktsu 3o' re►?!p,4aSlr ` .� further ititormat �`cb ' aiV: . • . sere 4 CPA • to`r'. it;tkbz'` •'` E=Maik Wo®V1th GYbIScaY•t(8Lus • ,, . • • • .; .y.µt.1 •