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ITEM: RESOLUTION NO. R2016-76 (EMPLOYEE HEALTH INSURANCE)
A RESOLUTION OF WELLINGTON FLORIDA'S COUNCIL AUTHORIZING THE MANAGER TO (1) RENEW A MINIMUM PREMIUM ARRANGEMENT AGREEMENT WITH CIGNA HEALTHCARE TO PROVIDE HEALTH INSURANCE TO ELIGIBLE EMPLOYEES, DEPENDENTS AND RETIREES; (2) CONTINUE WITH SELF FUNDED DENTAL INSURANCE UTILIZING DENTAL DECISIONS ADMINISTERED BY ANCHOR BENEFIT CONSULTING, INC.; (3) RENEW AGREEMENT WITH HUMANA TO PROVIDE VISION INSURANCE; AND (4) APPROVE HRA FUNDING FOR EACH ELIGIBLE EMPLOYEE; AND PROVIDING AN EFFECTIVE DATE.
REQUEST: Authorization to (1) Renew an existing minimum premium arrangement agreement with CIGNA HealthCare to provide health insurance to eligible employees, dependents and retirees, at a cost of approximately $4,859,249.04; (2) Continue with self-funded dental insurance utilizing Dental Decisions administered by Anchor Benefit Consulting, Inc., at an annual cost of $304,593.84; (3) Renew existing agreement with Humana to provide vision insurance to eligible employees and dependents at a cost of approximately $33,300 annually; and (4) Approve HRA funding for each eligible employee at $1,113.00 per employee.
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EXPLANATION:
1. Health Insurance Plan
The Village offers group medical insurance to existing full-time employees, dependents, and retirees through CIGNA HealthCare at a cost of approximately $4.695 million annually, based on the current enrollment of 288 active participants. The minimum premium arrangement agreement with CIGNA HealthCare is set to expire on December 31, 2016.
In order to ensure the best overall value to the Village, The Gehring Group, the Village's agent/broker of record, solicited quotes and evaluated different options from multiple carriers as summarized below:
Carrier
Coverage Type
Amount
% Increase
Increase Amount
1. Humana NPOS
Fully Insured
$4,431,351.84
-5.6%
($263,365.32)
2. United HealthCare
Fully Insured
$4,705,059.72
0.2%
$10,342.56
3. CIGNA Healthcare
(E...
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