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Home My WebLink About2000-23999 RESO RESOLUTION NO, 2000-23999 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS AND, IF SUCCESSFUL, FURTHER AUTHORIZING RENEWAL WITH HUMANA TO PROVIDE GROUP MEDICAL INSURANCE FOR EMPLOYEES AND RETIREES FOR A ONE-YEAR PERIOD EFFECTIVE ON OCTOBER I, 2000. WHEREAS, on July 7, 1999, the Mayor and Commission awarded a one-year contract with Humana, effective on October I, 1999, to provide Group Medical Insurance for Employees and Retirees; and WHEREAS, Humana has offered renewal rates, effective on October I, 2000, which are comparable to rates experienced by other govemrnental entities and private corporations; and WHEREAS, the Administration has determined that it is in the best interest of the City, its employees, and retirees, to enter into negotiations with Humana, and if successful, renew the current Group Medical Insurance; and WHEREAS, the Administration recommends that the Mayor and City Commission authorize the Administration to enter into negotiations with Humana and, if successful, authorize renewal with Humana, to provide Group Medical Insurance for Employees and Retirees, for a one- year period, effective on October I, 2000. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, the Mayor and City Commission hereby authorize the Administration to enter into negotiations and, if successful, further authorize renewal with Humana to provide Group Medical Insurance for employees and retirees, for a one-year period, effective on October I, 2000. PASSED AND ADOPTED this 12th day of July ,2000 ~}f~ City Clerk Mh Mayor APPROVED />S TO FORM & lANGUAGE & FOR EXECUTION F:IRISKI$ALL ICLlFFIHEAL THIRFP-CMIMED.ROO.WPD ~~iJ!@ ii'" ..., '" co "'''' '" re ... ~ It c: '$. 0> '" ~ ...'" '" ~~ ~ ~ ~ ~ ~ ~ :r. ~~ ~ ~~ c: ~ :!!i GO cO l<j .n ;ig ~ cO ~ 0 ~ ui a <:> '" ..., z z Z ~ zz I~ Ol! Z a ~ 12:ll co :;; ~ &0 ... 0 "- "- - l- I- Ii ~ ~ <:> ,... ~li! '" ;.; co ~ '" ... #- ~ ,.. ": "! ~ ~ ~ ~ ~ ~ '$. O! #- '" ~ ~ c: ~ '# ~ ci :;: '" <:> ... ..., ~ Si .... cO i on <:> ui m on co ~ Ci z z z z z "f ~ "f ~ i z "l co I. .., '" 12 on '" .... .... 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"" 0 ... v> ... .. .. lit ... .. lit 5 lit lit ! co c C ~ ~ 2! !- l- e OJ l- I- u: '~ e I:t; '+ '-+ -+ '" u l'i .. In .E + + + + u '" ... :g :3 In 10..., :a In on '" ,.. ,.. C ! ~~ co co", lie Ill! He co <:> IJ~ .. .. .. I~ ~i I~ :;; -e ,... ... ,.. .... I~ ::t I~ .... '" ,... ... >= 0 I~ a: I~ g: 0 E ~ "iii OJ E E 8 E I~ Q; "iii E E 0 "0 's a. lU .. " " " .. co ill co " " OJ co :;; ill E:::;;wE Q ltl .. %0 a. lU u. a. Ci5 0 0 U. lI.- a. u. iij 0 0 u. u. :J: ~ :cwf III u. . . . .. '" c: ! u C Q 'ii .. "D C .. Q. o c:: ..c: 1:1 ~ ! <:: e .. .. ~ ! f .!! i ... a a o . CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\cl.mlami-beach.fl.us COMMISSION MEMORANDUM NO. S5'7 - 0 '0 FROM: Mayor Neisen O. Kasdin and DATE: July 12,2000 Members oftbe City Commission Lawrence A. Levy () ~ City Man::v..,..."lI- A RE~TlON OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS, AND IF SUCCESSFUL, AUTHORIZING RENEWAL WITH HUMANA, TO PROVIDE GROUP MEDICAL INSURANCE FOR EMPLOYEES AND RETIREES, FOR A ONE-YEAR PERIOD EFFECTIVE OCTOBER 1,2000, TO: SUBJECT: ADMINISTRATION RECOMMENDATION Adopt the Resolution. FUNDING The estimated annual premium is $8,500,000.00. Premium contributions will be 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. This estimate is based on the existing number of employees and retirees enrolled in each of the plans. The estimated premium represents an annual increase of $958,000.00 for the City and a like amount for plan members. ANALYSIS The City is concurrently working on two options regarding the Group Medical Insurance plan in order to obtain the best possible insurance available. The City has issued an RFP for Group Medical Insurance in an effort to obtain a new plan and has also obtained renewal quotes from Humana regarding the current Group Medical Insurance plan. On May 10, 2000, the Mayor and City Commission authorized the Administration to issue a request for proposals (RFP) for Group Medical Insurance for the City of Miami Beach Employee's Benefit Plan. RFP No. 97-99/00 has been issued by the Procurement Department with a projected award date of September 27, 2000. APPROVED AGENDA ITEM fL7H 7-(2_-DD DATE On May 5, 2000, Humana provided renewal rates with increases of 10.6% for the HMO, 19.5% for the POS and 32.75% for the PPO. Humana has also provided rate reductions ranging from 3.1 % to 8% for the HMO and 6% to 10% on the PPO if the City decides to change the current benefit level. There are no rate reductions provided for the POS. Siver Insurance Consultants has reviewed the proposed increases and has advised that they are comparable to rate increases being experienced by other governmental entities and private corporations. *Please see the attached PlanIRate Options prepared by Siver Insurance Consultants. The Administration believes that it is in the best interest of the City, its employees, and retirees to negotiate, and if successful, renew the current Humana Group Medical Plan effective October I, 2000 and concurrently continue with the RFP process. By exercising both options, the City should be able to obtain the best Group Medical Benefit available. It is important to note that the renewal process needs to be completed as soon as possible to ensure that all plan participants have adequate time to make any plan changes they may desire due to the increase in rates. In the event the Administration receives a favorable response to the RFP, the plan with Humana may be terminated upon written notice prior to any premium due date (the premium due date is the first of every month). The Administration has reviewed this matter with Siver Insurance Consultants and the Health Advisory Cornmittee and has their concurrence. The Administration recommends that the Mayor and Commission adopt the attached Resolution, authorizing the Administration to enter into negotiations, and if successful, authorize the renewal with Humana, to provide Group Medical Insurance for Employees and Retirees, for a one-year period effective October I, 2000. LAL:~~:CI<< ~ Attachments f\RISK\SALL\Clift\Health\rfp-com\med-rOO