(7)(l)
CITY COMMISSION REGULAR MTG
- Meeting Date:
- 10/17/2018
- Title:
- Submitted By:
- Rhomari Jackson, City Secretary
- Department:
- City Secretary
Information
ACTION REQUEST (Brief Summary)
Consider and take action on Resolution No. 18-111, approving an agreement with a third party administrator(s) for the City's self-funded health, dental and vision insurance, ancillary services, and stop loss insurance for employee insurance benefits. (Human Resources)
BACKGROUND
The City is coming to the end of a three year agreement with Cigna to be a third party administrator of the City's self-insured health insurance program. City staff have worked with the City's insurance broker (Gallagher) to review proposals from various service providers for health insurance administration, Stop/Loss insurance, vision, dental, and ancillary services such as life insurance, catastrophic health insurance, etc. Gallagher has worked with staff to narrow down the final proposal and mix of providers and will review with the Mayor on Monday, Oct. 15. Once the final decision has been made, the City Commission will receive the relevant information in an email and the names and amount of the services. Due to deadlines for initiating open enrollment for health insurance in November, final action needs to be taken at this meeting on October 17th.
Update: After meeting with Gallagher, staff is recommending the attached Executive Summary (indicates service providers and costs/cost savings). The acceptance of this proposal does not affect plan designs or costs to the employees. It is only the selection of the Service Providers for the various aspects of the City's Health Care Benefits. In short, the City, working with Gallagher is anticipated to save an estimated $400,000 in medical expenses mostly due to savings provided through pharmacy rebates. The City will stay with Cigna & Express Scripts for the Medical aspects, Dental and Vision with MetLife, and Long Term Disability and Life insurance Voya. Since we are staying wth Cigna, the plan remains the same. MetLife and Voya bid based upon a comparable or better plan which were the same for the most part. All medical providers would remain the same, so no one will have to find new doctors or specialists.
Update: After meeting with Gallagher, staff is recommending the attached Executive Summary (indicates service providers and costs/cost savings). The acceptance of this proposal does not affect plan designs or costs to the employees. It is only the selection of the Service Providers for the various aspects of the City's Health Care Benefits. In short, the City, working with Gallagher is anticipated to save an estimated $400,000 in medical expenses mostly due to savings provided through pharmacy rebates. The City will stay with Cigna & Express Scripts for the Medical aspects, Dental and Vision with MetLife, and Long Term Disability and Life insurance Voya. Since we are staying wth Cigna, the plan remains the same. MetLife and Voya bid based upon a comparable or better plan which were the same for the most part. All medical providers would remain the same, so no one will have to find new doctors or specialists.