RESOLUTION 92-20452 RESOLUTION NO. 92-20452
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
MIAMI BEACH AUTHORIZING THE MAYOR AND THE CITY
CLERK TO EXECUTE A CONTRACT WITH HUMANA HEALTH
INSURANCE COMPANY OF FLORIDA, INC. (HUMANA GOLD
PLAN) TO PROVIDE GROUP MEDICARE SUPPLEMENT PLAN
EFFECTIVE JANUARY 1, 1992, FOR THOSE CITY RETIREES
ELIGIBLE THEREFORE PURSUANT TO MIAMI BEACH CITY
CODE ARTICLE IV.
WHEREAS, pursuant to City of Miami Beach Bid Award No. 122-88/93 ,
the City Commission awarded the HMO, PPO and Medicare Supplement portion
• of Bid No. 122-88/93 to Humana Health Care Plans; and
WHEREAS, the current arrangement of City retiree members '
individual contracts with uniform rates and group billings to the City
for the Medicare Supplement portion has become cumbersome to administer
due to changes in the Florida Department of Insurance regulations; and
WHEREAS, it has become more cost effective and beneficial to
establish a group Medicare Supplement plan effective January 1, 1992 to
replace the current arrangement of City retiree members ' individual
contracts;
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, to amend Bid Award No. 122-88/93 to
authorize the Mayor and the City Clerk to execute a group contract with
the Humana Health Insurance Company of Florida, Inc. (Humana Gold Plan)
to provide a group Medicare Supplement plan effective January 1, 1992
for those City retirees eligible therefore pursuant to Miami Beach City
Code Article IV.
PASSED AND ADOPTED this 19th day of February, 1992 .
MAYOR
ATTEST:
FORM APPROVED
�-, L DEPT.
CITY CLERK
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CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 /I'('
OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010
FAX: (305) 673-7782
COMMISSION MEMORANDUM NO. Yg42.•
DATE: February 19, 1992
TO: Mayor Seymour Gelber and
Members of the City Commission
('p.
FROM: Carla Bernabei Talarico
City Manager
SUBJECT: REQUEST TO APPROVE HUMANA GOLD PLAN GROUP CONTRACT
Humana was awarded Bid No. 122-88/93 on July 24, 1989, which
included the Medicare supplement plan. The Humana Gold Plan is the
Medicare supplement plan offered by Humana which provides
prescription drug card coverage and maximum benefits are received
for in-patient and out-patient use of Humana-owned hospitals. This
plan, designed for individual enrollment, provided uniform rates
and group billings, enabling premium payments to be made with
deductions from retiree pension checks and City matching
contributions. The components of the Humana Gold Plan are rerated
each year effective January 1st, based on the benefits and any
changes to Medicare enacted by Congress.
The Humana Gold Plan has undergone changes to its benefits due to
Florida Department of Insurance regulations which affect members
enrolling in the plan after the new regulations are in effect. It
does not affect those members enrolled in the plan prior to the new
regulations becoming effective. Due to the changing regulations,
all City retirees who are members of the Humana Gold Plan do not
have the same benefits. This situation creates difficulties in
administering the plan.
Humana has proposed establishing a group Humana Gold Plan for the
Medicare supplement plan. There would be uniform and some enhanced
benefits, with a bonus of considerable premium savings. Currently,
the monthly premium charged is $166 per member, divided between the
retiree and the City. The current plan was scheduled for a 26%
increase effective January 1, 1992 , to $210 per member. By
establishment of the group plan, the rate would be $139 per member,
a 17% decrease. The City contribution would be reduced by
approximately $30, 000 per year from its current payment, in
addition to avoiding approximately $55, 000 per year that the
increase would cost.
The establishment of the group plan would be effective
retroactively to January 1, 1992 .
ADMINISTRATION RECOMMENDATION
The Administration recommends to the City Commission to amend Bid
Award No. 122-88/93 to authorize the Mayor and the City Clerk to
execute a group contract with the Humana Health Insurance Company
of Florida, Inc. (Humana Gold Plan) for the group Medicare
Supplement plan effective January 1, 1992 .
G 1
•
AGENDA
ITEM C y..4
DATE �►--
plipPIERIMPOMMEMMIIMMEMO ORIG :NAL
RESOLUTION NO. 92-20452
•
Authorizing the Mayor and the City Clerk
to execute a contract with Humana Health
Insurance Company of Florida, Inc. (Humana
Gold Plan) to provide group medicare
supplement plan effective January 1, 1992,
for those City retirees eligible therefore
pursuant to Miami Beach Ciyt Code
Article IV.