Discussion and possible action on any and all matters regarding the Employee Benefits Plan changes effective July 1, 2024. (Oscar Diaz, Vice President of CBIZ-Business Development)

This is a presentation regarding the Employee Benefit Plan changes, and the savings to the Employee Benefit Trust (EBT) and the City.  

At the meeting held on February 15, 2024, the City of San Luis (COSL) issued an amendment to the professional services agreement with CBIZ to align with the provisions in the Request for Qualifications and Request for Proposals.  Such provision indicated that any other source of income, revenue, or compensation, including but not limited to commissions received by the Broker/Consultant in connection with the City’s account must be disclosed and either remitted to the City, or subtracted from the fee received from the COSL.  As a result of this provision, the contracts for the following vendors have been amended to remove broker commissions from the Per Employee Per Month (PEPM) fees resulting in the following savings to:

The Employee Benefits Trust:

• Teladoc Health, Inc. (Healthiest You) – savings of approximately $4,400.  PEPM was reduced from $13.00 to $11.80 by eliminating the broker commission.

 The City:

• Basic Life insurance – savings of $23,045
• Vision plan – savings of $2,800

 Teladoc Health Inc. (Healthiest You) contract requires approval from the Board of Trustees. The Basic Life insurance and Vision plan contracts require approval from the City.

Additionally, the BlueCross/BlueShield Network fee will increase from $21.50 to $22.00 PEPM as stipulated in their two-year agreement signed/approved by the EBT on April 5, 2023.   

I MOVE TO APPROVE THE BENEFITS PLAN CHANGES AS PRESENTED.