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2011-27737 Reso Inc. RESOLUTION NO 2011 -27737 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY ADMINISTRATION TO ENTER INTO AN AGREEMENT WITH THE TRUSTMARK COMPANIES AND COLONIAL LIFE ACCIDENT AND INSURANCE COMPANY TO PROVIDE A VOLUNTARY ACCIDENT INSURANCE PLAN, FULLY FUNDED BY EMPLOYEE CONTRIBUTIONS. WHEREAS, the City currently provides its full -time employees access to a voluntary benefits program that supplements the City's core benefit plans (medical, vision, dental, disability and life) by providing a wide range of benefit options that allow employees to customize their benefit program at lower group rates; and WHEREAS, these options are provided at no cost to the City and are fully funded by employee contributions; and WHEREAS, the employees are provided voluntary benefit options which include universal life, disability, critical life insurance, a cancer policy, and discount legal services; and WHEREAS, at the direction of the City Administration, the City's Consultant, Gallagher Benefits Services, Inc. (Gallagher), issued a Request for Proposals (RFP) for a voluntary benefits program for both the City's full -time and part -time employees; and WHEREAS, the results and recommendation of this RFP were discussed at the April 13, 2011 City Commission meeting, with the Mayor and City Commission approving the offering of a number of voluntary benefits beginning January 1, 2012, including discount legal plans, critical illness, universal life and a hospital indemnity plan; and WHEREAS, Gallagher also recommended that the City Administration offer the Trustmark Companies Accident Plan Insurance (Trustmark) to its employees; and WHEREAS, believing their proposed plan provided a better benefit at reduced costs, Colonial Life Accident Plan (Colonial Life), a respondent to the RFP, requested that the Administration reconsider Gallagher's recommendation; and WHEREAS, the Administration agreed to work with Gallagher to re- examine the Accident Plan proposals, and bring the results to the Finance and Citywide Projects Committee for their review and recommendation; and WHEREAS, following a detailed re- examination, Gallagher informed the Administration that the Trustmark Accident Plan provided a better benefit than the Colonial Life Accident Plan, even though the cost of the Trustmark plan is slightly higher; and WHEREAS, these results were presented to the Finance and Citywide Project Committee during their June 23, 2011 meeting, with the members voting to return the item to the full City Commission for final evaluation and vote; and WHEREAS, based on the comprehensive summaries provided by Trustmark and Colonial Life, as well as Gallagher's examination, the Administration recommended to include both the Trustmark Accident Plan and the Colonial Life Accident Plan as a part of the City's voluntary benefit program; and WHEREAS, the Administration recommended for the voluntary Accident Insurance Plan benefit to be offered to full -time and part -time employees, along with the universal life, critical illness and hospital indemnity plans previously approved by the Mayor and City Commission, to be made available when the new insurance /benefit plan year commences on January 1, 2012; and NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the City Administration is authorized to enter into an agreement with the Trustmark Companies and Colonial Life Accident and Insurance Company to provide for both full -time and part -time employees, a voluntary accident insurance plan, fully funded by employee contributions effective January 1, 2012. PASSED and ADOPTED this /V day of grflistb-er , 2011. J 1 i l i / i!f / / M •' Mattie Herrera Bower ATTEST: w : ea rot (INCORP ORATED: APPROVED AS TO CITY CLERK $4-57 . :� FORM & LANGUAGE Robert Parcher -••••• N & FOR EXECUTION h /� 26 • t • , - ' Date Jose Smith O , T:\AGENDA\2011 \9 -14 -11 \Accident Plan Resolution.doc COMMISSION ITEM SUMMARY Condensed Title: A Resolution of the Mayor and City Commission of the City of Miami Beach, Florida, authorizing the City Administration to enter into an agreement with the Trustmark Companies and Colonial Life Accident and Insurance Company to provide a voluntary Accident Insurance Plan, fully funded by employee contributions. Key Intended Outcome Supported: • Control costs of payroll including salary and fringe benefits • Attract and maintain a quality workforce. Supporting Data (Surveys, Environmental Scan, etc.): I. 2007 Internal Support Functions Survey • Overall satisfaction of benefits administration was rated 75.6% as excellent or good combined Issue: Should the City enter into an agreement with the Trustmark Companies and Colonial Life Accident and Insurance Company to provide a new voluntary Accident Insurance Plan to employees, at no cost to the City, as the Accident Insurance Plan will be fully funded by employee contributions. Item Summary /Recommendation: At the direction of the City Administration, the City's consultant of record, Gallagher Benefit Services (Gallagher) issued their RFP for the City's voluntary benefit program. This item was discussed at the April 13, 2011 City Commission meeting, with the Mayor and City Commission approving the offering of a number of voluntary benefits beginning January 1, 2012. As a result of the RFP, Gallagher also recommended that the City offer the Trustmark Accident Insurance Plan to its employees. Disagreeing with the Accident Plan recommendation, Colonial Life Accident Plan requested that the Administration re- examine their proposed plan coverage and cost, as representatives of the Colonial Life Accident Plan believed their plan to be more competitive than the plan proposed by Trustmark. The Administration requested that Gallagher contact the two (2) Accident Insurance Plan proposers (Trustmark and Colonial Life), and obtain a detailed summary of the premiums and benefits proposed by each company. After a thorough re- examination, Gallagher again deemed that the Trustmark plan provided a better benefit than the Colonial Life plan, even though the cost for the Trustmark plan is slightly higher. This information was presented to the Finance and Citywide Projects Committee during their June 23, 2011 meeting. The item was discussed, with the members voting to send the item to the full Commission without recommendation. The item was placed on the July 13, 2011 City Commission Meeting Consent Agenda. Typically items on the Consent Agenda are routine and do not require discussion. The item should have been placed on the Regular Agenda in order to allow all Commissioners the opportunity to discuss it. The item was removed, and the Commission was notified that it would be included in the September 14, 2011 City Commission meeting under the Regular Agenda. Based on the updated comprehensive summaries provided by Trustmark and Colonial Life, as well as Gallagher's recommendation, the Administration requests to include both the Trustmark Accident Plan as well as the Colonial Life Accident Plan as a part of the City's voluntary benefit program, as it considers either plan to be in the employees' best interest. The voluntary Accident Insurance Plan benefit, if approved, along with the universal life, critical illness and hospital indemnity plans previously approved by the Mayor and City Commission, will be made available to both full -time and part-time employees when the new insurance /benefit plan year commences on January 1, 2012. Advisory Board Recommendation: The Finance and Citywide Projects Committee, at their June 23, 2011 meeting, voted to return the item to the full City Commission for final evaluation and vote. Financial Information: Source of Amount Account Funds: 1 N/A 2 3 OBPI Total Financial Impact Summary: NO FISCAL IMPACT The accident insurance plan is a voluntary benefit program, and is fully funded through employee contributions. City Clerk's Office Legislative Tracking: Sue Radig, Human Resources Benefits Administrator I Sign -Offs: Departme t Director • ssistant City Manager City Manager • • • Ra iro Inguan o, H da M. Fernandez, Jorge • n :lez Human Resources Director Assistant City Manager City M. . •er AA I A MtBE..ACH AGEAGENDA ITEM R 7F p DATE 7 -1 LI- 11 � City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager DATE: September 14, 2011 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY ADMINISTRATION TO ENTER INTO AN AGREEMENT WITH THE TRUSTMARK COMPANIES AND COLONIAL LIFE ACCIDENT AND INSURANCE COMPANY TO PROVIDE A VOLUNTARY ACCIDENT INSURANCE PLAN, FULLY FUNDED BY EMPLOYEE CONTRIBUTIONS. ADMINISTRATION RECOMMENDATION Adopt the Resolution. FISCAL IMPACT There is no fiscal impact as the voluntary Accident Insurance Plan is paid fully by the employees who elect coverage. BACKGROUND During the June 23, 2011 Finance and Citywide Projects Committee (FCWPC) meeting, Committee members heard from representatives of the Administration and from Citrin Financial on this item. The FCWPC members thereafter agreed to send the item to the full Commission without recommendation. The item was placed on the July 13, 2011 City Commission Consent Agenda. Typically items on the Consent Agenda are of routine nature and do not require discussion. The item should have been placed on the Regular Agenda in order to allow all Commissioners the opportunity to discuss it. The item was removed, and the Commission was notified that it would be included in the September 14, 2011 City Commission meeting under the Regular Agenda. By way of further background, the City's voluntary benefits program supplements the City's core benefit plans (medical, vision, dental, disability and life) by providing a wide range of benefit options that allow employees to customize their benefit program at lower group rates. These programs are offered on a voluntary basis, with no cost to the City. The employees who choose to participate pay the full premium cost. _ r City Commission Meeting, September 14, 0311 Selection of a Voluntary Accident Plan Page 2 of 4 At the direction of the City Administration, the City's consultant of record, Gallagher Benefit Services (Gallagher) issued an RFP for the City's voluntary benefit program. This item was discussed at the April 13, 2011 City Commission meeting, with the Mayor and City Commission approving the offering of a number of voluntary benefits beginning January 1, 2012, including: • Discount legal plans; • Critical Illness Plan; • Universal Life Insurance Plan; and • Hospital Indemnity Plan. As a result of the RFP, Gallagher also recommended that the City Administration offer the Trustmark Companies Accident Plan Insurance (Trustmark) to its employees. Accident Plan Insurance provides benefits in the event of covered injuries that occur either at work or outside the work place. Benefits are paid directly to the participant to help offset unexpected medical costs and lost wages. The plan also includes a daily benefit for hospitalization due to illness. The plan is portable, meaning employees may continue coverage after leaving the City by paying their premiums directly to the carrier. This benefit is currently not offered to City employees. Disagreeing with the Accident Plan recommendation, Colonial Life Accident Plan (one of the insurance carriers responding to Gallagher's RFP) requested that the Administration re- examine their proposed plan coverage and cost, as representatives of the Colonial Life Accident and Insurance Company (Colonial Life) believed their plan to be more competitive than the plan proposed by Trustmark. The Administration agreed to work with Gallagher to undertake a thorough re- examination of the Accident Plan proposals, and bring the results to the Finance and Citywide Projects Committee (FCWPC) for their review and recommendation. Following the April 13, 2011 City Commission meeting, the Administration requested that Gallagher contact the two (2) Accident Insurance Plan proposers (Trustmark and Colonial Life), and obtain a detailed summary of the premiums and benefits proposed by each company. A copy of the benefit summaries submitted by Trustmark and Colonial Life are attached (Attachment A). A synopsis of the benefits provided in each individual plan's RFP response can be found on the following page. City Commission Meeting, September 14, 2011 Selection of a Voluntary Accident Plan Page 3 of 4 Synopsis of the Major Benefits for Accident Plan Insurance Trustmark Colonial Life Wellness Care • $50 per visit • None* • up to 2 visits per year Hospital Confinement • $400 per day • $300 per day • up to 365 days • up to 365 days Hospital Intensive Care • $800 per day • $600 per day • up to 15 days • up to 15 days Catastrophic Accident Benefit 1 • No reduction in plan benefits • Plan benefits are reduced by 50% at age 65 • 90 day waiting period before • 365 day waiting period before plan coverage begins plan coverage begins Maximum benefit payment Maximum benefit payment Employee • $100,000 • $100,000 Spouse • $ 50,000 • $ 100,000 Child(ren) • $ 50,000 • $ 50,000 Emergency Room • $150 per visit • $200 per visit Accidental Death Benefit 2 If death is due to a If death is due to a common carrier common carrier accident accident Employee • $75,000 $150,000 • $75,000 $100,000 Spouse • $40,000 $80,000 • $75,000 $100,000 Child(ren) • $20,000 $40,000 • $15,000 $20,000 Ambulance Ground • $300 per transport • $500 per transport Air • $1,000 per transport • $1,500 per transport Monthly Premium Employee • $18.49 • $18.00 Family • $52.87 • $36.00 *The Colonial Life Accident Plan proposed in their initial RFP response did not include their Wellness (Health Screening) Rider. If included, the rider provides a $50 calendar year benefit for one person per policy for one of 18 health screening tests. The addition of this Wellness Rider may change the monthly premium costs. 1 Catastrophic Accident Benefit — This benefit helps families during the transitional period following a catastrophic Toss. The Catastrophic Accident Benefit provides a lump sum benefit for a catastrophic loss after fulfilling a waiting period. A catastrophic loss is the loss of use of sight, hearing, speech, arms or legs. 2 Accident Death Benefit — This benefit provides a lump sum for an accidental death that occurs within a set time period of a covered accident. The benefit increases if the accidental death is due to a common carrier. City Commission Meeting, September 14, 2011 Selection of a Voluntary Accident Ran Page 4 of 4 After the detailed re- examination, Gallagher informed the Administration that although the Trustmark plan provided a better benefit than the Colonial Life plan, the cost of the Trustmark plan is slightly higher. Based on the updated comprehensive summaries provided by Trustmark and Colonial Life, as well as Gallagher's recommendation, the Administration requests to include both the Trustmark Accident Plan as well as the Colonial Life Accident Plan as a part of the City's voluntary benefit program, as it considers both to be in the employees' best interest. The voluntary Accident Insurance Plan benefit, if approved, along with the universal life, critical illness and hospital indemnity plans previously approved by the Mayor and City Commission, will be made available when the new insurance /benefit plan year commences for City employees on January 1, 2012. Given that the Accident Insurance Plan is a new voluntary benefit not currently provided to employees, the Mayor and City Commission may opt to decline to offer this benefit to employees. If not approved, part -time employees, who are not eligible for the City's core medical, vision, dental, disability and life plans, will not be eligible to elect the Accident Insurance Plan coverage, which may help offset out -of- pocket medical expenses and lost wages. CONCLUSION The Administration urges the Commission to approved this resolution to offer both the Trustmark Accident Plan and the Colonial Life Accident Plan to City employees as a part of the City's Voluntary Benefit Program commencing January 1, 2012. T:\AGENDA \2011 \9- 14- 11\Accident Plan Memo.doc ATTACHMENT A Benefit Summaries Trustmark Accident Insurance Plan Colonial Life Accident Insurance Plan Trustmark Accident Insurance Plan Trustmark Coverage Type 24 -hour Hospital Plan Plan 3 Hospital Admission Benefit $2000 per admission Hospital Confinement $400 (per day up to 365 days) - Hospital ICU $800 (per day up to 15 days) Wellness Benefit $50 per vist Waiting Period 60 days. up to 2 visits per person per year, no cap on Maximum Visits number of family members. Catastrophic Accident Benefit No reduction schedule Employee $100,000 Spouse $50,000 • Children $50,000 Elimination Period 90 days Accidental Death Benefit Employee $75,000 Spouse $40,000 Children $20,000 Accidental Death Common Carrier Benefit Employee $150,000 Spouse $80,000 Children $40,000 Accident Follow -Up Treatment $100 Ambulance Ground $300 Air . $1,000 Appliance $200 Blood, Plasma and Platelets $600 Bums Flat Amount for: 3rd degree 35 or more sq. in. $20,000 3rd degree 9 -34 sq. in. $3,000 2nd degree for 36 % more of body $1,500 • Concussion - $200 Dislocations open reduction up to $8,000 closed reduction - up to $4,000 Doctor's Office Visit $100 Emergency Dental Benefit extraction • $100 crown $300 Emergency Room Treatment $150 Eye Injury $400 Fractures open reduction . up to $10,000 • • i • Trustmark Accident Insurance Plan dosed reduction up to $5,000 Chips 25% of closed reduction benefit Herniated /Ruptured Disc • $800 • Lacerations (based on size) $50 -$800 • Lodging (per night up to 30 days /per • person per accident) • $200 Loss of Finger, Toe, Hand, Foot or Sight of an Eye Loss of both hands, feet, sight of both eye or any combination of 2 or more losses $30,000 Loss of 1 hand, foot or sight of one eye • $15,000 Loss of 2 or more fingers, toes or any combination of 2 or more losses . $3,000 • Loss of 1 finger. or 1 toe $1,500 Physical Therapy $50(up to 6 visits per person per accident Prosthetic Device or Artifical Limb . More than 1 $2,000 One $1,000 Skin Grafts 25% of burn benefit Surgery Benefit open, abdominal, thoracic $2,000 exploratory $200 Tendon /Ligament /Rotator Cuff repair of more than 1 $1,200 repair of 1 $800 exploratory without repair $200 Torn Knee Cartilage $1,000 exploratory $200 Transportation • (100 miles up to 3 trips per person per accident) $600 • Rates • Composite or Age Banded Composite- Employee $18.49 Employee Spouse $28.33 • • Empoyee Child(ren) • $43.03 • • Employee Family $52.87 27-Jun-11 • Date • • , Sig ture • • • • r - Colonial Life Accident insurance Plan Colonial j Coverage Type 24 hour/ on and off Job coverage(coverage is worldwide) Hospital Plan Plan 1 Hospital Admission Benefit $2000 per admission per accident Hospital Confinement $300 (per day up to 365 days) Hospital ICU $600 (per day up to 15 days) Wellness Benefit Available as an optional rider. Wellness Rider was not included in proposed RFP rate. Waiting Period Maximum Visits Catastrophic Accident Benefit — 50% reduction at age 65 Employee _ $100,000 Spouse $100,000 Children $50,000 Elimination Period 365 days Accidental Death Benefit Employee $75,000 Spouse $75,000 Children - $15,000 • � i Accidental Death Common Carrier Benefit Employee $100,000 Spouse • $100,000 Children $20,000 Accident Follow-Up Treatment $120 (up to 3 visits) Ambulance Ground $500 Air $1,500 Appliance $150 Blood, Plasma and Platelets $300 Burris Flat Amount for: 3rd degree 35 or more sq. In. • $10,000 3rd degree 9 -34 sq. in. - $1,500 2nd degree for 36% or more of body $750 The Colonial Life Accident Insurance Plan benefit summary indicates the availability of a Wellness Benefit Rider and an increase in the monthly premium costs for their Accident Insurance Plan. This information was not included in the original benefits summary submitted in response to Gallagher's RFP. The Colonial Life Accident Plan Wellness Rider provides for the following Wellness Benefit: Wellness Benefit Available as an optional rider Waiting Period 30 days Maximum Visits $50.00 per calendar year for one person per policy Colonial Life Accident Insurance Plan Concussion $100 Dislocations _ open reduction _ up to $6,000 dosed reduction up to $3,000 Doctor's Office Visit $120 Emergency Dental Benefit extraction $100 crown - _ $200 Emergency Roam Treatment $200 Eye Injury • $500 Fractures open reduction up to $7,500 closed reduction up to $3,750 Chips 25% of closed reduction benefit ; Herniated /Ruptured Disc $400 Lacerations (based on size) $25 - $400 Lodging (per night up to 30 days /per person per accident) $100 for family member or companion Loss of Finger, Toe, Hand, Foot or Sight of 1 an Eye Loss of both hands, feet, sight of both eye or any combination of 2 or more losses $15,000 Loss of 1 hand, foot or sight of one e ye $7,500 Loss of 2 or more fingers, toes or any combination of 2 or more losses $1,500 Loss of 1 finger or 1 toe _ $750 Physical Therapy _ 1 $50 (up to 6 treatments) Prosthetic Device or Artlficai Limb More than 1 • $1,000 One • _ $500 Skin Grafts _ 25% of bum benefit Surgery Benefit open, abdominal, thoracic $1,500 exploratory $150 Tendon /Ligament /Rotator Cuff - repair of more than 1 - $600 repair of 1 exploratory without repair $100 Torn Knee Cartilage _ $500 exploratory _____ $100 Transportation - "I (100 miles up to 3 trips per person per accident) $ 300 Rates J f • Composite or Age Banded Composite Employee $18,00 per month Employee Spouse $24.00 per month Empoyee Child (ren) $30.00 per month Employee Family $36.00 per month 'I 1 Date 6/28/2011 Signature Da ' I• achman f n �!/ � �___ ______________.._ _ ..__ . . ..... _____ ______ __ . _.