2003-25238 ResoRESOLUTION NO. 2003-25238
A RESOLUTION OF THE MAYOR AND CiTY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE
RANKING OF THE PROPOSALS RECEIVED FOR GROUP
EMPLOYEE BENEFITS PURSUANT TO THE REQUEST FOR
PROPOSALS ISSUED FEBRUARY 14, 2003, BY ARTHUR J.
GALLAGHER AND CO., THE CITY'S BROKER FOR GROUP
EMPLOYEE BENEFITS, AUTHORIZING THE ADMINISTRATION
TO ENTER INTO NEGOTIATIONS WITH HUMANA, THE CITY'S
CURRENT GROUP MEDICAL PROVIDER, FOR RENEWAL OF THE
GROUP MEDICAL PROGRAM AND, IF SUCCESSFUL,
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN
AGREEMENT, FOR AN ESTIMATED ANNUAL PREMIUM NOT TO
EXCEED $14,000,000; AUTHORIZING THE ADMINISTRATION TO
ENTER INTO NEGOTIATIONS WITH COMPBENEFITS, THE CITY'S
CURRENT GROUP DENTAL PROVIDER, FOR RENEWAL OF THE
GROUP DENTAL PROGRAM AND, IF SUCCESSFUL,
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN
AGREEMENT, FOR AN ESTIMATED ANNUAL PREMIUM NOT TO
EXCEED $520,000; AUTHORIZING THE ADMINISTRATION TO
ENTER INTO NEGOTIATIONS WITH HARTFORD, THE CITY'S
CURRENT PROVIDER OF GROUP LIFE, SUPPLEMENTAL LIFE
AND STATUTORY LIFE INSURANCE, FOR RENEWAL OF THE
GROUP LIFE, SUPPLEMENTAL LIFE AND STATUTORY LIFE
INSURANCE PROGRAM AND, IF SUCCESSFUL, AUTHORIZING
THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT,
FOR AN ESTIMATED ANNUAL PREMIUM NOT TO EXCEED $
415,000; AUTHORIZING THE ADMINISTRATION TO ENTER INTO
NEGOTIATIONS WITH FRINGE BENEFITS MANAGEMENT
COMPANY TO PROVIDE A FLEXIBLE SPENDING PROGRAM
AND, IF SUCCESSFUL, AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE AN AGREEMENT, FOR AN ESTIMATED
ANNUAL AMOUNT NOT TO EXCEED $8,000 AND, IF
UNSUCCESSFUL, AUTHORIZING THE ADMINISTRATION TO
ENTER INTO NEGOTIATIONS WITH UNITED GROUP PROGRAMS,
INC., THE CITY'S CURRENT PROVIDER OF THE FLEXIBLE
SPENDING PROGRAM; AUTHORIZING THE ADMINISTRATION
TO ENTER INTO NEGOTIATIONS WITH THE COMPREHENSIVE
COMPANIES, THE CITY'S CURRENT BROKER FOR VOLUNTARY
BENEFITS AND, IF SUCCESSFUL, AUTHORIZING THE MAYOR
AND CITY CLERK TO EXECUTE AN AGREEMENT; FURTHER
REJECTING THE BID FROM PRE-PAID LEGAL, INC. AS THE
SOLE BIDDER FOR A VOLUNTARY LEGAL PLAN; REJECTING
THE BID FROM AARP FOR SUPPLEMENTAL MEDICARE
INSURANCE AS THE SOLE BIDDER FOR SUPPLEMENTAL
MEDICARE COVERAGE.
WHEREAS, on February 14, 2003 a Request for Proposals for Group Employee Benefits
was issued by Arthur J. Gallagher & Co, the City's broker for group employee benefits, with twenty
(20) vendors responding; and
WItEREAS, on April 15, 2003, Arthur J. Gallagher & Co. began meeting with the City
Administration to present it's evaluation of the proposals received in response to the Request For
Proposals; and
WHEREAS, Arthur J. Gallagher & Co.'s recommendations are as follows:
1) renew its contract with Humana, the City's current group medical provider,
with a combined renewal increase of 8%;
2) renew its contract with CompBenefits, the City's current group dental
provider, with a combined renewal increase of 3%;
3) renew its contract with Hartford, the City's current group life,
supplemental life and statutory life insurance with a renewal increase of
36% on the basic life insurance and no increase to the supplemental life
and statutory life insurance;
4) enter into a contract with Fringe Management Benefits Company to
provide a Flexible Spending Program at a cost not to exceed $8,000, with
this benefit to be negotiated with all bargaining groups;
5) to renew the City's contract with The Comprehensive Companies to
provide Voluntary Benefits with these benefits being negotiated with all
bargaining groups;
6) rejecting the bid from Pre-Paid Legal, Inc. as the sole bidder for legal
services; and
7) rejecting the bid from AARP for Supplemental Medicare insurance as the
sole bidder; and
WI-IEREAS, the City Manager has reviewed and agreed with the aforestated
recommendations of Arthur J. Gallagher & Co.
WHEREAS, these recommendations were presented to the Group Insurance Board on June
3, 2003 with the Board agreeing with the recommendations and the City Manager; and
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby accept the ranking of the proposals received for group employee benefits
pursuant to the request for proposals issued February 14, 2003, by Arthur J. Gallagher and Co., the
city's broker for group employee benefits, authorizing the Administration to enter into negotiations
with Humana, the City's current group medical provider, for renewal of the group medical program
and, if successful, authorizing the Mayor and City Clerk to execute an agreement, for an estimated
annual premium not to exceed $14,000,000; authorizing the Administration to enter into
negotiations with CompBenefits, the City's current group dental provider, for renewal of the group
dental program and, if successful, authorizing the Mayor and City Clerk to execute an agreement,
for an estimated annual premium not to exceed $515,000; authorizing the Administration to enter
into negotiations with Hartford, the City's current provider of group life, supplemental life and
statutory life insurance, for renewal of the group life, supplemental life and statutory life insurance
program and, if successful, authorizing the Mayor and City Clerk to execute an agreement, for an
estimated annual premium not to exceed $ 415,000; authorizing the Administration to enter into
negotiations with Fringe Benefits Management Company to provide a flexible spending program
and, if successful, authorizing the Mayor and City Clerk to execute an agreement, for an estimated
annual amount not to exceed $8,000 and, if unsuccessful, authorizing the Administration to enter
into negotiations with United Group Programs, Inc., the City's current provider of the flexible
spending program; authorizing the Administration to enter into negotiations with The
Comprehensive Companies, the City's current broker for voluntary benefits and, if successful,
authorizing the Mayor and City Clerk to execute an agreement; further rejecting the bid from Pre-
Paid Legal, Inc. as the sole bidder for a voluntary legal plan; rejecting the bid from AARP for
supplemental Medicare insurance as the sole bidder for supplemental Medicare coverage.
PASSED AND ADOPTED this 11 th day of June ,2003
ATTEST:
CITY CLERK
F:'~IUMAXSall\COMM.RES\GroupEmployeeBenefitsRFPyr03.doc
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
· 'Ci~fforney ,~,F'~['_ Date
Gallagher Benefit Services, Inc.
May 27, 2003
A Subsidiary of Arthur J. Gallagher s. Co.
Jorge M. Gonzalez, City Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Re: RFP #23-02/03 Employee Benefits Recommendations
Dear Mr. Gonzalez,
At the City of Miami Beach's request, we released a Request for Proposal (RFP) for all
currently offered group employee benefits. The request included Medical, Dental, Life,
Accidental Death and Dismembem~ent, Statutory Accidental Death and Dismemberment,
Voluntary Benefits, Flexible Spending Account Administration and Medicare
Supplements. A vendor list has been provided illustrating what carriers were supplied the
RFP and those that responded by product (See exhibit A). In addition, the RFP was
posted on Demand Star by the City, giving all subscribers the opportunity to provide bids
on any or all lines of coverage. Recommendations will be discussed below.
Medical proposals were requested on both a fully insured and self funded basis.
Additionally, we requested the "carving out" of the pre-medicare retirees to determine if
any additional savings could be realized by self-funding this segment of the City's
population. Responses were received from the incumbent carrier Humana, and Cigna
Healthcare. Cigna's proposal did not duplicate the benefit schedules as requested. Plan
deviations resulted in an estimated 16.3% decrease in benefits. In addition, the current
PPO was replaced with POS product in an effort to reduce costs. Cigna also declined to
quote the retirees on a fully insured basis. The reinsurance related to the self-funded
portion of the plan was quoted on an immature basis, meaning no coverage is afforded for
claims paid after the end of the plan year. Reinsurance premiums and aggregate factors
were adjusted to represent a mature year. Cigna's approach leaves the City at risk for the
highest cost population segment. Humana indicated they could provide a proposal for self
funding the retirees and fully insuring the active employees, however they would not
provide reinsurance for the retirees. We discussed with reinsurers if they would offer
reinsurance on such a risk and they declined as well.
The current two tier rating system was reviewed versus a three tier system in an attempt
to better match the medical renewal rates to the City's employee and dependent
distribution. This reallocation caused a significant increase to the family rate and will be
revisited at the next renewal.
One Boca Place
2255 Glades Road, Suite 400 E
Boca Raton, FL 33431
561.995.6706
Fax 561.995.6708
www.ajg.com
Attachment B
Lastly, provider reimbursements were evaluated and no remarkable differences were
found. Given the plans proposed by the carriers, the overall impact of the discount
arrangements produces a slight advantage to Humana. The Cigna proposal offer no
significant advantage to the City taking into account plan designs funding arrangements
and overall pricing.
Gallagher Benefit Services recommends that the City renew with Humana effective
October 1, 2003, maintaining the existing five plans with an increase of 8% over current
costs. Humana's renewal also reflects the changes the City made last plan year with the
addition of the Low Option plans with higher copayments and deductibles as well as a
prescription drug formulary. Humana's renewal is very good in light of current trends of
15- 25% in renewal increases.
CompBenefits, the incumbent dental carrier, offered a renewal of the existing DMO and
PPO scheduled benefit plans at a 3% increase over current costs. If the City desires, a
third plan with benefits reimbursable on reasonable and customary basis, providing
higher benefits to the employees at an increase in cost, paid by the employees, can be
offered in addition to the existing plans. Additional proposals were received from 6
vendors, several of which attempted to duplicate costs as closely as possible while others
priced their standard benefit plans.
Delta Dental most closely matched the existing plan costs, but in doing so, compromised
the benefits offered. Although savings could be realized through lower premiums,
covered employees and their dependents could experience increased expense through
provider balance billing.
Safeguard offered three DMO options and one PPO. As pricing on the DMO's became
competitive, benefits were reduced below those currently offered. PPO pricing for family
coverage was significantly higher than current costs.
Cigna's dental proposal called for premium increases on both products without offering
dramatic benefit enhancements.
Humana offered a competitive employee rate for the DMO, but dependent costs again
were higher than current costs. Humana's PPO proposal called for significant premium
increases.
Reliance Standard proposed a dental PPO plan only also at an increase in cost.
In all instances, the DMO and PPO products could not be unbundled, thus eliminating the
opportunity to mix and match carriers with the most competitive products. The
alternative proposals do not offer any significant benefit to the employees unless the
increase in costs is absorbed by both the City and its employees. CompBenefits renewal,
at an increase of 3% is below Dental trend and we recommend renewal of the current
offerings. Offering an additional plan with greater benefits, with the additional cost borne
by the employees, is an option to be considered.
,¸
The Life, AD&D, Retiree, Statutory AD&D and Supplemental Life Insurance Request
for Proposal was forwarded to 15 life insurance carriers for quotation. Six responses were
received including the incumbent renewal.
Current loss history is attributable to the "average" number of responses. The basic life
incurred loss ratio from the period 10/1/98 - 11/30/02 was 162% with a billed premium
of $577,213 versus incurred claims of $894,842. Despite the high loss ratio, Hartford
reduced the original renewal from $0.33/$1,000 to $0.30/$1,000. This represents a 36%
increase over current cost. The annual increase in the basic life premium is $61,000, of
which, the City and the employees share equally.
In addition, supplemental life results were also poor. The incurred loss ratio for the same
period was 114%. The Hartford renewal however, reflected no change to the current
rates.
Alternate proposals were received. Vendors and respective costs are outlined in the
attached Exhibit B. Proposing carders were requested to split their basic and optional life
proposals to develop a more cost effective package for the City; however the carders
declined to do so stating higher than inforce supplemental life rates and the concern on
adverse selection. It was also apparent that a few proposing carriers attempted to cost
shift from the basic life to the supplemental life with the participation requirements
protecting their overall premium requirements. Should these participation requirements
not be met during the open enrollment, benefits currently in place could be lost. The
incumbent carrier, Hartford is reconu'nended for renewal of the Basic Life and AD&D
and Supplemental Life at the proposed renewal rates. Statutory Life is also recommended
for renewal at the current inforce rates.
Requests for Flexible Spending Account Administration produced 6 responses including
United Group Plan, Inc., the incumbent. Alternate proposals varied in both the services
provided and the costs associated. Several of the proposals received, required the offering
of voluntary products to validate the administration costs, which did not conform to the
RFP. Others could not provide the desired automated features the City desires, to
maximize employee satisfaction and ease of administration.
Fringe Benefit Management's proposal offers reduced overall cost to the City and can
meet the objectives mentioned above and is recommended to assume the administration
of the Flexible Spending Account effective October 1, 2003.
Requests were also made for alternate voluntary employee paid benefits. Proposals
received offered no significant benefit or cost enhancements to the employees of Miami
Beach and we recommend continuing to offer the current benefits through
Comprehensive Companies.
¸,
Pre-paid Legal Services Inc. was the only vendor to provide a bid on group legal services.
We recommend that City surveys its employees to determine interest in this benefit. We
do not recommend that the City accept Pre-paid Legal's proposal at this time.
We received a Group Medicare supplement Program t~om the AARP. This plan is
underwritten by United Health care. The program requires a minimum City contribution
of $50.00 per month per retiree electing the plan, and pays the first year AARP
membership ($12.50 per household) for all eligible employees. The AARP premiums are
no lower under group provision than if the retiree enrolled on an individual basis and they
also vary by State. We recommend that the City rejects the AARP proposal on a group
basis.
We appreciate the opportunity to work with the City of Miami Beach and its staff and
will answer any questions that may arise.
Sincerely,/ J/
Assist' Ric~ardan~~Jlce President
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
Condensed Title:
Group Employee Benefits as a result of RFP issued February 14, 2003 for plan year beginning October 1,
2003.
Issue:
Should the City accept the recommendations from Gallagher Benefits Services, the City's broker for
employee benefits, as a result of the RFP Issued on February 14, 2003 for Group Employee Benefits?
Item Summary/Recommendation:
The City Administration recommends that the Commission accept the recommendations of the Gallagher
Benefits Services for renewal of medical, dental, life insurance and voluntary benefits with the current
carriers; awarding the Flexible Spending Accounts Administration to Fringe Benefits Management; and
rejecting the bids from Pre-Paid Legal Services, Inc. and AARP for a supplemental Medicare plan.
Advisory Board Recommendation:
The Group Insurance Board agrees with the recommendations of the City Manager and Gallagher
Benefits Services.
Financial Information:
.~/ 2 260,000.00 Dental
300,000.00 Life
8,000.00 Flex.
FinanCe Dept. To~i 7,568,000.00
City Clerk's Office Legislative Tracking:
IT. C. Adderly
AGENDA ITEM
DATE
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci,rniami-beach.fl.us
COMMISSION MEMORANDUM
To:
Mayor David Dermer and
Members of the City Commission
Date: June 11, 2003
From:
Subject:
Jorge M. Gonzalez~
City Manager ~ ~x~-
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RANKING OF THE
PROPOSALS RECEIVED FOR GROUP EMPLOYEE BENEFITS
PURSUANT TO THE REQUEST FOR PROPOSALS ISSUED FEBRUARY
14, 2003, BY ARTHUR J. GALLAGHER AND CO., THE CITY'S BROKER
FOR GROUP EMPLOYEE BENEFITS, AUTHORIZING THE
ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH HUMANA,
THE CITY'S CURRENT GROUP MEDICAL PROVIDER, FOR RENEWAL
OF THE GROUP MEDICAL PROGRAM AND, IF SUCCESSFUL,
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN
AGREEMENT, FOR AN ESTIMATED ANNUAL PREMIUM NOT TO
EXCEED $14,000,000; AUTHORIZING THE ADMINISTRATION TO
ENTER INTO NEGOTIATIONS WITH COMPBENEFITS, THE CITY'S
CURRENT GROUP DENTAL PROVIDER, FOR RENEWAL OF THE
GROUP DENTAL PROGRAM AND, IF SUCCESSFUL, AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT, FOR AN
ESTIMATED ANNUAL PREMIUM NOT TO EXCEED $520,000;
AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS
WITH HARTFORD, THE CITY'S CURRENT PROVIDER OF GROUP LIFE,
SUPPLEMENTAL LIFE AND STATUTORY LIFE INSURANCE, FOR
RENEWAL OF THE GROUP LIFE, SUPPLEMENTAL LIFE AND
STATUTORY LIFE INSURANCE PROGRAM AND, IF SUCCESSFUL,
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN
AGREEMENT, FOR AN ESTIMATED ANNUAL PREMIUM NOT TO
EXCEED $ 415,000; AUTHORIZING THE ADMINISTRATION TO ENTER
INTO NEGOTIATIONS WITH FRINGE BENEFITS MANAGEMENT
COMPANY TO PROVIDE A FLEXIBLE SPENDING PROGRAM AND, IF
SUCCESSFUL, AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE AN AGREEMENT, FOR AN ESTIMATED ANNUAL AMOUNT
NOT TO EXCEED $8,000 AND, IF UNSUCCESSFUL, AUTHORIZING THE
ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH UNITED
GROUP PROGRAMS, INC., THE CITY'S CURRENT PROVIDER OF THE
FLEXIBLE SPENDING PROGRAM; AUTHORIZING THE
ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE
COMPREHENSIVE COMPANIES, THE CITY'S CURRENT BROKER FOR
VOLUNTARY BENEFITS AND, IF SUCCESSFUL, AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT; FURTHER
REJECTING THE BID FROM PRE-PAID LEGAL, INC. AS THE SOLE
BIDDER FOR A VOLUNTARY LEGAL PLAN; REJECTING THE BID FROM
AARP FOR SUPPLEMENTAL MEDICARE INSURANCE AS THE SOLE
BIDDER FOR SUPPLEMENTAL MEDICARE COVERAGE.
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
ANALYSIS:
As a result of the Group Employee Benefits RFP issued on February 14, 2003 by Arthur J.
Gallagher & Co., the City's broker for group employee health benefits, twenty (20) vendors
responded to eight (8) lines of coverage - Medical, Dental, Life, Accidental Death and
Dismemberment, Statutory Life (Police Officers and Firefighters), Voluntary Benefits,
Flexible Spending Accounts Administration and Medicare Supplements. Gallagher's
recommendation letter, detailing each line of coverage, is attached (Attachment B). The
Administration met with Gallagher Benefit Services beginning April 15, 2003 to review their
recommendations from the RFP. The City Manager accepted their recommendations; the
Group Insurance Board met on June 3, 2003 and agreed with the recommendations.
MEDICAL:
There were two (2) proposals received for medical insurance -from our incumbent carrier,
Humana and from Cigna Healthcare. Cigna's proposal did not duplicate the benefits
schedules as requested and the PPO was replaced by a POS product in an effort to
reduce costs. Cigna also refused to quote on our retiree population on a fully insured
basis. Humana submitted a renewal of 8% for the five existing plans and the
Administration, and Group Insurance Board, recommends renewing with Humana with an
estimated annual premium not to exceed $14,000,000. This is a minimal increase in light
of what is occurring in the current healthcare market with projections of 15-25% increases
this year. The City's implementation last year of the Iow option plans, and the tier
prescription benefit, has helped control the cost increase. This minimal increase in
premium is allowing the Administration to recommend an increase in the percent the City
pays toward premium costs for the Iow option plans. The Administration recommends
increasing the amount the City pays from 65% to 75% for active employees and from 50%
to 51% for family. This is for the Iow option plans only; the high options plans will remain at
50% City and employee and retirees. Participation in the Iow option plans is subject to
negotiation with the C.W.A. and A.F.S.M.E.G.S.A. negotiated participation in the Iow
option programs last year. The attached chart (Attachment A) indicates the new monthly
employee premiums.
DENTAL:
There were six (6) proposals received for dental plans, including the incumbent carrier,
CompBenefits with a renewal proposal of 3% over the current costs which is below dental
plan trends. The other proposals offer no significant increase in benefit over the current
plan, without a comparative increase in premium. In addition to the current DMO and PPO
plans that are offered to the City, CompBenefits is offering a second PPO that provides
benefits reimbursable on a reasonable and customary basis, providing higher benefits to
employees, at a higher cost. This increased cost, over the current PPO, will be paid by the
employee. The Administration recommends renewal with CompBenefits for an estimated
annual premium not to exceed $520,000. The attached chart (Attachment A) indicates the
new monthly employee premiums.
LIFE, ACCIDENTAL DEATH & DISMEMBERMENT, SUPPLEMENTAL LIFE AND
STATUTORY LIFE INSURANCE:
There were proposals received from six (6) vendors including a renewal proposal from
Hartford with a 36% increase in premium for the basic life only. The loss ratio over the past
four years was 162% with billed premiums of $577,213 versus incurred claims of $894,842.
Despite this high loss ratio, Hartford held the increase to 36%. The renewal for accidental
death, supplemental life and statutory life (for Police Officers and Firefighters) included no
increase in premiums even though the supplemental life had a high loss ratio of 114%.
The Administration recommends renewing with Hartford for an estimated annual premium
not to exceed $415,000.
FLEXIBLE SPENDING ACCOUNT ADMINISTRATION:
There were six (6) vendor responses for Flexible Spending Account Administration
including from the incumbent, United Group Programs, Inc. Fringe Benefits
Management's proposal was the most cost effective and beneficial to the employees with a
maximum annual administrative cost of $8,000. The Administration recommends
negotiating a contract with Fringe Benefits Management for administration of the Flexible
Spending Program. Participation in program by bargaining unit employees is contingent
upon negotiation.
VOLUNTARY BENEFITS:
There were five (5) vendors responding to the request for voluntary benefit programs,
including the City's current broker for voluntary benefits, The Comprehensive Companies.
Voluntary benefits are fully paid by the employee with administration expenses absorbed
by the City. One of the vendors, Pre-Paid Legal, Inc., was the only vendor submitting a
proposal for legal services and the only program they offer. The Administration
recommends rejecting the proposal from Pre-Paid Legal, Inc. as the sole bidder for legal
services. The Administration recommends that employees should be surveyed as to their
interest in a legal services plan before pursuing that plan. The Administration recommends
continuing with The Comprehensive Companies for the current programs in place and any
new programs the City may wish to implement over the term of the negotiated contract.
MEDICARE SUPPLEMENTS:
There was only one proposal received for Medicare supplementary coverage. This was
from AARP, with the plan underwritten by United Health Care. The premiums offered
under this program are no lower on a group basis than they are for an individual to pay on
their own. In addition, the premium amounts vary by regions of the country. The
Administration recommends rejecting the proposal.
Summary:
The renewal rate of 8% for medical coverage with Humana and 3% for dental coverage
with CompBenefits indicates that the City's continued review of the programs offered is an
important process for controlling health insurance costs while providing affordable, quality
programs to the employees and retirees of the City of Miami Beach.
The Administration recommends accepting the evaluation, ranking, and recommendation
of Gallagher Benefit Services of the proposals received for all lines of coverage as a result
of this RFP,
JMG:MDB:TCA:pah
EMPLOYEE MONTHLY RATES FOR MEDICAL INSURANCE - HUMANA
CURRENT RATE NEWRATE
(THRU 9/30103) EFFECTIVE 10/!/03
HIGH OPTION HMO HIGH OPTION HMO
EMPLOYEE (50%) $155.53 EMPLOYEE (50%) $167.96
FAMILY (50%) $385.49 FAMILY (50%) $416.33
POS POS
EMPLOYEE (50%) $199.89 EMPLOYEE (50%) $215.88
FAMILY (50%) $495.98 FAMILY (50%) $535.65
HIGH OPTION PPO HIGH OPTION PPO
EMPLOYEE (50%) $316.73 EMPLOYEE (50%) $342.06
FAMILY (50%) $777.08 FAMILY (50%) $839.24
LOW OPTION HMO LOW OPTION HMO
EMPLOYEE (35%) $100.57 EMPLOYEE (25%) $77.58
FAMILY (50%) $355.48 FAMILY (49%) $375.82
LOW OPTION PPO LOW OPTION PPO
EMPLOYEE (35%) $196.55 EMPLOYEE (25%) $151.63
FAMILY (50%) $686.30 FAMILY (49%) $724.64
EMPLOYEE MONTHLY RATES FOR DENTAL PLANS - COMPBENEFITS
CURRENT RATE NEWRATE
(THRU 9130103) EFFECTIVE t071/03
DMO (50%) DMO (50%)
EMPLOYEE $4.93 EMPLOYEE $5.08
EMPLOYEE +1 $9.20 EMPLOYEE +1 $9.48
FAMILY $11.97 FAMILY $12.33
PPO (50%) PPO (50%)
EMPLOYEE $11.01 EMPLOYEE $11.35
EMPLOYEE +1 $21.24 EMPLOYEE +1 - $21.89
FAMILY $32.55 FAMILY $33.55
PPO ELITE 400 NEW PPO ELITE 400
(50% OF REG.PPO + DIFF)
EMPLOYEE NOT OFFERED EMPLOYEE $18.23
EMPLOYEE +1 NOT OFFERED EMPLOYEE +1 $35.15
FAMILY NOT OFFERED FAMILY $53.87
huma~alAgroupinsur~openenrol~03~med*dent rate month
ATTACHMENT A