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Home My Public Portal About1999-34 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. awe/ HITA H. ALVAREZ, CMC, VILLAGE C APPROVED AS TO FORA)AND LEGAL SUFFICI rt_ /1 FORA) RICHARD J. WE SS, VILLAGE ATTORNEY N. .,.SCO Village Council Joe 1. Rasco, Mayor Gregory C. Han, Vice Mayor Scott Bass Martha Fdez Le6n Broucek Alan H. Fein Mortimer Fried Robert Oldakowsld 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: MEDICAL INSURANCE. (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 STATEMENT: `TD PROVIDE A SAFE, 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 S.avings $ 48.36 $ 96.72 $140.28. Our recommendation is also heavily weighted by the fact that we are receiving good service from AvMed and our employees seem to be very satisfied with their plan and the doctors network, so 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 HIP were so competitive, we recommend that another quote be requested from them next year. TONG TERM DISABILITY: (Exhibit B) Hartford Life, ( our current carrier), #1 &lA 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 a maximum benefit payment of $5,000 per month. The 70% plan has a $6,000 maximum payment per month. Exhibit B shows Hartford slightly ahead of Guarantee Life due to the fact that it pays benefits an. 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 not 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. LIM AND ADM): (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 DISABILITY (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. DENTAL: (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 $40,000. per year. Again, we can make no recommendation on this coverage until the overall benefits are reviewed. VISION CARE; Most of the medical plans offered vision coverage as part of their medical policy. Currently, this coverage is offered through AvMed, and as it is recommended that we accept their coverage, C. Samuel Kissinger, Village Manager Page 4 April 19,1999 the vision coverage would remain with them. The vision coverage is minimal and it is recommended that when overall benefits are reviewed, that this coverage be enhanced. J.F.GAL, SFRICF,$: 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 $23.95 per month. It is recommended that we remain with Pre -Paid Legal since one of the benefits they offer is additional hours of service, at no additional cost, when the policy is renewed. Police officers can substitute a "Law Officer's Legal Plan" at the same cost as the extended family plan. This entitles them to 24 -hour telephone access to an attorney and additional, Administrative and Termination Hearing representation; however, they will lose the Moving Traffic Violation representation that they now have with the extended family plan. The Chief of Police may want to study this new coverage and let us know if he considers it to be better coverage for his staff. LIM and AD&D (for police and firefighters only) This coverage is mandated by Florida Statutes 112.19 and 112.91. Coverage is currently carried through The Hartford Life Insurance Company and they are the only ones who responded to our RFP. We recommend that this policy be renewed, covering only sworn law enforcement officers and fighters, and not administrative staff that are currently covered. J.ONG-TRRM CARR We had no response to our RFP for this type of coverage. C. Samuel Kissinger, Village Manager Page 5 April 19, 1999 CAFETERIA J ! IAN (AFL,AC) Our cafeteria plan, which is administered by KCI Financial Services, Inc., also provides several policies and programs through a pre-tax program. Our employees can select the following programs (the numbers in brackets indicate the number of employees who participate in them): ShortTerm Disability (5) Dental Care (43) Accident Insurance (43) Cancer Insurance (26) Hospitalization (5) Intensive Care (4) Group Term Insurance (3) Medical Reimbursement Plan (10) Child Care Deductions (3) 9333 If 11 gg 2 �tl W w 01 III( iLi Jjalif Ffi.qN -� .. g.o s O�� Si �� :! MM tg A 112 h `!!$ lli 3 8it 144 03 4444��8 O IIII JJJJ a C C? O Q a aaaaa a 01 01 01 a a 01 a 000000 N W A 00 01000000004.001 U. 01 a a a A 04.4 .. 01010/ W010101a Was AMMO) N W A 000 00000 00^ A a A a 0 A ..C1 W W aOfOma01A01 AAa V a 01001 ON W 0000000014.0 ANO V 001000001 0000000000 0000004. 00M 0000000000 00000001000 00010 ) 000)01 000101 000 0 )0101 000 ma* +NW 001 a A014. O+W 00101 0101010)0101 0+N 000 000000 00101 000 0 0 0 0 0) A 1400 aaa 000001A OWA N 01 01 0000014 N 0(1 10 ) 00000+ 4.00 11 01 01ON W 0101010101010101010101010101 3 r a x4.010 10 AAA 0p 00 J CO 01 01 O a 01 00 01 to 01 d I 00001.4 0000.4 0a001W 0000 Co 00000 00000 001000 00101010 00000 001a0W 00000 00000 O a a a W 00000 0010101 W O a a W a W a N 0 O 0 a IR rw N 14= a 0 a m a a a a a a a o m m a 01001010101010101010101010101 010101010101010101010101010101 010101010101010101010101010101 01 0 A 01 01 0 01 0101 01 01 01 0101 a 0)00101010010101010101010101 a 0101101 010101010101010101 0100010101010101010105010101 0)00010101010101010101010101 010001010101010)010101010101 01000.aaaa01aaaa01a 010)01010101010101 010101010101010101 010101010101010101 01 O a 01 01 0000001000 4, 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 = 21 mos pmt 5 6 5 5 5 5 Age 68 = 15mos pmt 5 6 5 5 5 5 Over 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 Benefit %= 60% 5 7 5 7 5 7 Total 50 61 51 53 53 55 $0.37 PER $100 $0.97 PER $100 5 4 3 5 7 4 Total 5 5 4 7 3 4 Limitations: Bonus/ Overtime 5 5 5 6 5 5 Other: Workers Comp 5 5 5 5 5 5 Retirement Plan 5 5 5 5 5 5 Pre -Exist Cond 6/6/12 5 5 7 7 6 6 Conversion - Yes 5 5 0 0 0 0 Voc 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 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 $1,000/m 5 4 3 3 AD&D $0.05 " " " 5 5 4 3 Total Life @ 100% One Item d@ 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 '` „' RFPSTD99.WK4 EVALUATION MATRIX 1=POOR /10=BEST 5 = NEW POLICY PROPOSALS #1 #lA #2 #3D 13w 26w 13w 12wk Elimination Period: 1 Day For Injury 5 5 0 3 8 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 @ $0.58/$0.69 5 5 4 10 40-44 @ $0.741 $0.91 5 5 4 10 50-54 @ $0.941 $1.19 5 5 4 10 60-64 $1.38/ $1.82 5 5 4 10 70-74 @ $2.08/ $ 2.72 5 5 4 10 Total 70 25 20 50 Limitations: Bonus/ Overtime 0 0 0 0 Workers Comp -Excluded 0 0 0 0 Retirement Plan-Exduded 0 0 0 0 Pre -Exist. Cond. 12/12 Mo 0 0 Conversion - 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 ECSIBFr D RFPDENTAL99.WK4'`43 EVALUATION MATRIX 1=POOR /10=BEST 5 = AMERICAN DENTAL (with KCI) 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 30 15 15 13 27 30 Cafetiria Plan Conversion - Yes Voluntary Plan Out of Net Work Total 5 0 0 0 5 5 5 0 0 0 0 0 5 1 1 1 4 4 0 5 5 0 0 15 6 1 6 9 9 EXHIBIT E MIAMI DAILY BUSINESS REVIEW Published Daily except Saturday, Sunday and Legal Holidays Miami, Dade County, Florida. STATE OF FLORIDA COUNTY OF DADE: Before to undersigned arthodty personally appsa ed Soak h WMUama, who on oath says that the Is the Ylce President of Legal Advertising of the Miami Daily Business Review BM Miami Redew, a daily (except Saturday, Sunday and Lagal Holidays) newspaper, publlshsd et Miami In Dada County, Flod da; that the attached copy of adwrdsomenf, Whig a Legal Advertisement of Notice In the muter of THE VILLAGE OF KEY BISCAYNE ACCEPTING PROPOSALS FOR HEALTH CARE AND LIFE INSURANCE FOR ITS EMPLOYEES 1n the XXXX'X w p tbS hr said newspaper In the Issues of Court, Afflant further Review Is a newspaper that the mid Mimi Dally Busbies'Busbies'paper published at Mland M uldd Dade County, Florida, and that the sold newspaper has herekdont • been continuously published in said Dade County, Flo dde, each day Nucept Saturday, Sunday and Legal Holtd.ys) and has been entered as amend class mall matter at the post office M Miami M said Dade County, Raids, for a period of one , preceding the Mrat publication of the attached and afflant further says that she has nor promised any parson, Oren or corporation rebate, commbdon or rotund for the purpose this for publlcatlon an the said • THE VILLAGE OF; KEY. BISCAYNE.' • ThA Vfliage of icoyaiqcayne4-almePtIMI Pe4bsais..f94 health .cane anal-pfe�; : Fttr. further Infanniti Ilea`s •Cblhbaa;1,s:. • • • •' :••:"V• 3.r S',�4. Qf!:`.l':�p: '.. •.i ' FinanCieDireCtqL ., ? CPA , • J E�IAai�11 17111 Z,, ." •w %w�i�'L'6r,' f•i ?,• iii `1‘.i4t.• .; i 'u n, • ��j• , 99••022647~