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ITEM: (1) RESOLUTION NO. R2013-75 (AUTHORIZATION TO RENEW THE WELLINGTON EMPLOYEE HEALTH PLAN WITH UNITED HEALTHCARE AND THE LIFE, SHORT TERM AND LONG TERM DISABILITY PLANS WITH CIGNA GROUP BENEFITS; AND (2) AUTHORIZATION TO COMMIT $100,000 IN PRIOR YEAR UNSPENT GENERAL FUND BUDGETS FOR HEALTH, LIFE AND DISABILITY PREMIUMS AND HRA ACCOUNTS TO THE INSURANCE RESERVE FUND TO OFFSET FUTURE INCREASES IN INSURANCE PREMIUMS)
A RESOLUTION OF WELLINGTON, FLORIDA'S COUNCIL AUTHORIZING THE MANAGER TO RENEW THE CONTRACT FOR EMPLOYEE HEALTH INSURANCE THROUGH UNITED HEALTHCARE AND THE CONTRACT FOR LIFE, SHORT TERM AND LONG TERM DISABILITY THROUGH CIGNA GROUP BENEFITS; AND PROVIDING AN EFFECTIVE DATE.
REQUEST: (1) Authorization to renew the Wellington Employee Health Plan with United Healthcare and the Life, Short and Long Term Disability Contract with CIGNA Group Benefits for the 2014 plan year and
(2) Authorization to commit $100,000 in prior year unspent General Fund budgets for health, life and disability premiums, and Health Reimbursement Accounts to the Insurance Reserve fund to offset future increases in insurance premiums.
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EXPLANATION: (1) Health Insurance Plan:
Wellington offers group medical insurance to existing full-time employees and retirees through United Healthcare, effective through December 31, 2013, at an annual cost of $3.709 million based on current enrollment of 263.
During the months of September - October 2013, The Gehring Group, Wellington's broker/agent of record issued a solicitation seeking insurance firms to provide a guaranteed cost premium proposal, with plan designs that match Wellington's current schedule. As a result of the competitive bid process, the following proposers responded for group medical insurance:
Proposers
Premium Increase From 2013
AETNA
19.8%
Blue Cross Blue Shield
29.3%
CIGNA Healthcare
14.3% Subsequently Revised to 10.5%
Humana
16.6%
United Healthcare
24.9% Subsequently Revised to 10...
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