Impact
WARD: City Wide
COMMITTEE: Human Resources
$ IMPACT: $211,548
Title
Approval of the 2019 Employee Insurance providers and plans and authorize the Mayor to execute all related documents
Body
ISSUE: Annual selection / renewal of employee benefits
BACKGROUND: Every fall, the city must re-evaluate and select its insurance plans and providers for Employee Benefits (medical, dental, vision, life, AD&D, short-term and long-term disability, flex spending and Cobra administration). Our consultant/broker, Marsh McLennan Agency (Guy Morrison) solicited bids through an RFP process. The RFP results were reviewed by MMA and city staff (HR, Finance, City Administration) to determine the best provider(s) and plan design(s) for the upcoming year.
RECOMMENDATION/REQUESTED ACTION:
Recommendation:
1) Renewal of medical insurance with Blue Cross/Blue Shield, with a change in co-pay for Specialist (from $25 to $35), adding a reduced co-pay (from $25 to $10) for use of the Telemedicine benefit and increase RxCopay for Preferred brand (from $30 to $40);
2) Increase the employee cost share of medical by 1% to 15%. Combined with #1, this results in an overall increase of $193,166 in cost to the City.
3) Renewal dental and vision insurance with current provider, Guardian.
4) Renewal of Life and AD&D insurance with MetLife. This results in an increase in cost of $18,482 to the City.
5) Change in COBRA and FSA administrator from WageWorks to Discovery. This results in a savings of $1,562 to the City
Requested Action: Approval of the 2019 Employee Insurance providers and plans and authorize the Mayor to execute all related documents.