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ITEM: RESOLUTION NO. R2015-91 (EMPLOYEE HEALTH INSURANCE)
A RESOLUTION OF WELLINGTON FLORIDA'S COUNCIL AUTHORIZING THE MANAGER TO (1) RENEW A MINIMUM PREMIUM AGREEMENT WITH CIGNA HEALTHCARE TO PROVIDE HEALTH INSURANCE TO ELIGIBLE EMPLOYEES, DEPENDENTS AND RETIREES; (2) RENEW EXISTING AGREEMENTS WITH CIGNA GROUP BENEFITS FOR LIFE, SHORT TERM AND LONG TERM DISABILITY; (3) CONTINUE WITH SELF FUNDED DENTAL INSURANCE UTILIZING DENTAL DECISIONS ADMINISTERED BY ANCHOR BENEFIT CONSULTING, INC.; 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 $4,641,621.24; (2) Renew an existing agreement with CIGNA Group Benefits for life, short term and long term disability at an annual cost of $207,542.26, with no changes to premium or covered benefits; (3) Continue with self-funded dental insurance utilizing Dental Decisions administered by Anchor Benefit Consulting, Inc.; and (4) Approve HRA funding for each eligible employee at $1065 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 $3.968 million annually, based on enrollment of 284. The minimum premium arrangement agreement with CIGNA HealthCare is set to expire on December 31, 2015.
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 CIGNA HealthCare
Self-Insured (expected cost)
$4,502,943.18
13.50%
$534,702.42
2. CIGNA Healthcare
Minimum Premium
$4,641,621.24
17.00%
$6...
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