RESOLUTION 92-20569 CITY OF MIAMI BEACH
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CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FL ORIDA 33139
OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010
FAX: (305) 673-7782
COMMISSION MEMORANDUM NO. - ?i
TO: Mayor Seymour Gelber and DATE: 7 /22 /92
Members of the City Commission
FROM: Roger M. Carito, s
Y ger
Cit Mana
SUBJECT: AWARD OF BID NO. 102-91/96 , CITY OF MIAMI BEACH GROUP
MANAGED CARE/INDEMNITY DENTAL INSURANCE PLAN(S)
ADMINISTRATION RECOMMENDATION:
The Administration recommends to the City Commission that our Group
Managed Care/Indemnity Dental Insurance Plan be awarded to Prudential
Insurance Company of America for a one year period commencing October
1 , 1992 , with options to renew for four additional one-year periods .
BID AMOUNT AND FUNDING:
$556 , 000 . (Annual Estimate) Split 50/50 between employee/retiree
deductions and City contributions .
City contribution funding is available
from Budget Accounts of various
departments , subject to OMB approval .
BACKGROUND:
Due to changes in the group insurance market and in the City Commission
and Administration, it appeared to be in the best interest of the City
to solicit bids for the entire group insurance program at this time.
Towers Perrin, the City ' s Benefit Consultant, and the Administration
prepared the bid specifications , with the bid objectives and benefit
changes requested being developed in conjunction with the Group
Insurance Board which is comprised of administration, employee and
retiree representatives.
Invitation to Bid No. 102-91/96 was released on May 14 , 1992 , and bids
were received on June 18 , 1992 .
Towers Perrin evaluated all the bids received and presented a
Preliminary Report - Review of 1992 Bid Proposals and Initial
Recommendations to the City Administration and the Group Insurance
Board on July 10 , 1992 . On July 13 , the Group Insurance Board voted
to recommend the award of the bid for Group Managed Care/Indemnity
Dental Insurance Plan(s) to Prudential Insurance Company of America ,
commencing October 1 , 1992 . It is recommended that the awards be for
a one year period, with options to renew for four additional one year
periods.
A Final Report, prepared by Towers Perrin, has been distributed with
the agenda package, for your review.
FUNDI , APPROVED
A tY AGENDA
Ma gement and :ud•et ITEM
DATE 2 - 7Z
•
t t
AWARD OF BID NO. 102-91/96, CITY OF MIAMI BEACH GROUP MANAGED
CARE/INDEMNITY DENTAL INSURANCE PLAN(S)
July 22 , 1992
Page Two
ANALYSIS:
ADVERTISEMENT DATE: May 12 , 1992
PRE-BID MEETING DATE : May 22 , 1992 , 9 : 00 A.M.
BID OPENING DATE: June 18 , 1992 , 3 : 30 P.M.
NOTICES MAILED: Forty-Nine (49)
SPECIFICATIONS MAILED: Thirty ( 30)
REPLIES : Ten ( 10) , including 3 "No Bid" responses
Bids were received from:
Advantage Dental Health Plans
American Dental Plan, Inc .
American Medical & Life Ins . Co.
CIGNA
International Dental Plans, Inc.
Oral Health Plan
Prudential
"No Bid" responses:
Addison Financial Services, Inc .
Blue Cross/Blue Shield
Humana Health Care Plans
Towers Perrin evaluated the bids, with the following results .
It was determined that the following firms did not meet the City ' s bid
specifications , and would not be considered:
Advantage Dental Health Plans - did not offer an indemnity
dental plan
American Medical & Life Ins . Co. - does not have an existing
South Florida network
International Dental Plans, Inc. - did not offer an indemnity
dental plan
The remaining proposals were evaluated, based upon the following
criteria :
1 . Compliance with design and rating specifications
2 . A.M. Best Company rating of proposing companies
3 . Price competitiveness and multiple year rate guarantees
4 . Employee ability to switch among plans
Out of 100 maximum possible points, Prudential was the top ranked firm,
with 85 points awarded. Prudential ' s bid is their renewal offer to
extend the current experience-rated, non-participating (no refund)
contract with the City for the next year at the current inforce rates,
and with a guarantee that the renewal rates for the October 1 , 1993
plan year will not exceed ten percent. Prudential also agreed to
benefit enhancements in the indemnity option of the plan with no
additional premium cost.
CONCLUSION:
Because of Prudential ' s ability to meet the City ' s design requests, and
their bid which keeps the current rates in force from October 1 , 1992
to September 30, 1993 and places a not-to-exceed cap of 10% on rates
for the following year, the Group Insurance Board voted to renew the
current managed care/indemnity dental contract with Prudential , and the
Administration concurs with that decision.
RMC: EJ : j f
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ORIGINAL ' 2 o 9
RESOLUTION NO. 94-20569
Bid award No. 102-91/96, C.M.B. Group
Managed Care/Indemnity Dental Insurance
Plan.