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Item 4E - MemoItem 4E CITY OF SOUTH LAKE MEMORANDUM July 29, 2024 TO: Alison D. Ortowski, City Manager FROM: Stacey Black, Assistant City Manager/Senior Director of Human Resources SUBJECT: Approve a contract renewal with Standard Insurance Company to provide an employee assistance program and employee long-term disability, life, and accidental death and dismemberment insurance for the Plan Year October 1, 2024 to September 30, 2025. Action Requested: Approve a contract renewal with Standard Insurance Company (The Standard) to provide an employee assistance program and employee long-term disability, life, and accidental death and dismemberment insurance for the Plan Year October 1, 2024 to September 30, 2025. Background Information: One of the City's goals is to be an employer of choice to attract and retain top talent. Providing a competitive, attractive, and financially sustainable benefits package is an essential component of this strategy. The City provides all employees with access to an employee assistance program as part of the comprehensive employee benefits package. It also offers full-time employees long-term disability (LTD) insurance, basic life insurance (Life), and accidental death and dismemberment (AD&D) insurance. EmNovee Assistance Program An Employee Assistance Program (EAP) is a workplace benefit that provides employees with confidential support for personal and work - related issues. It aims to improve employee well-being, productivity, and overall job experience by offering counseling, legal assistance, and financial guidance services. By addressing a range of problems, from mental health concerns to stress management, EAPs help create a healthier and more supportive work environment. Currently, the City's EAP provider, Alliance Work Partners, offers employees access to up to three counseling sessions per problem each year at no cost. The cost for this service is $1.99 per employee per month, amounting to approximately $13,731 annually. Alison D. Ortowski, City Manager July 29, 2024 Page 2 Item 4E The Standard offers an Employee Assistance Program (EAP) through its partner, Health Advocate, which provides a more comprehensive service with up to six counseling sessions per problem each year at no cost. This program also includes a digital platform for assistance via phone, email, messaging, or live chat and access to expert clinical support through telephone consultations, virtual telehealth, and in - person sessions. The cost of The Standard's EAP is $1.75 per employee per month, totaling about $12,075 annually. By bundling this EAP with other coverage from The Standard, the City can save approximately $1,656 annually while providing employees with enhanced EAP benefits. Lonq-Term Disabilitv, Life, and AD&D Insurance. The Standard has been the City's carrier for long-term disability, life, and AD&D insurance since October 1, 2019, following a competitive bidding process. The proposed renewal marks the fifth consecutive renewal, and the proposed rates are unchanged from the previous year. The Standard provides the following levels of coverage to employees: 1x annual salary up to $50,000. 60% of salary after a 1x annual salary 90-day waiting up to $50,000. Sworn public safety period. employees receive an additional 1x annual salary up to $50,000. A summary of the rates and the associated annual estimated premium costs is provided below. AD&D Rate / $1, 000 Basic Life Rate / $1, 000 $0.025 $17,995,200 $450 $5,399 $0.070 $17,995,200 $1,260 $15,116 Total: $91,386 Alison D. Ortowski, City Manager July 29, 2024 Page 3 Financial Considerations: Item 4E The City has had a favorable experience with The Standard. Renewing the contract allows the City to maintain consistency in providers with the same rates and offer a more robust EAP program at a lower cost. Coverage Est. Annual Est. Annual Cost Increase (Decrease) Employee Assistance Program $12,075 ($1,656) Long-term Disability Insurance $70,872 $0 Life Insurance $15,116 $0 Accidental Death & Dismemberment $5,399 $0 Insurance TOTAL: $103,461 ($1,656) The estimated costs above assume current employee enrollment. The proposed EAP, LTD, Life, and AD&D plan costs will be included in the proposed budget for Fiscal Year 2025. Strategic Link: Performance Management and Service Delivery: attract, develop, and retain a skilled workforce. Citizen Input/ Board Review: N/A Legal Review: Contracts have been reviewed by the City Attorney's Office Alternatives: Deny the contract with The Standard and seek alternative options. Supporting Documents: The following supporting documents are attached: • The Standard 2024 Renewal Summary • Health Advocate Proposal Staff Recommendation: Approve a contract renewal with Standard Insurance Company to provide an employee assistance program and employee long-term disability, life insurance, and accidental death and dismemberment insurance for the Plan Year October 1, 2024 to September 30, 2025. 6HealthAdvocatei M Life & Emotional Health (EAP) Prepared for: City of Southlake 4/29/2024 Life & Emotional Health Health Advocate Proposal Trusted support for organizations and their employees Health Advocate's Life & Emotional Health solution offers caring, in -the -moment support, to modern access to emotional health resources and first-class partnerships with human resources and leadership. From individual counseling to conflict resolution and crisis intervention, our experts give you the support you need to create a workplace that's emotionally healthy and psychologically safe. Digital engagement Our digital experience is inclusive and easy to navigate, with multiple ways for members to browse, access services and reach their optimal emotional well-being. • Personalized assessments, checklists • Schedule online counseling, coaching • State -specific Legal Center • Financial Fitness Center Call • Email • Message • Live Chat ga Expert clinical support Calls to our program are answered by a Health Advocate Master's -level EAP clinician, who provides confidential, in -the -moment support for a wide range of personal challenges. Experienced Work/Life Specialists help individuals achieve a healthy work/life balance. Masters- Emotional ManageI Financial level Wellness Assistancrk/Life & Legal clinicians Specialists Programcialists Experts 24/7 Support • 250+ Languages • HIPAA-Compliant (.,::. HealthAdvocateM ©2024 Health Advocate Life & Emotional Health Health Advocate Proposal Powerful digital resources Our digital platform offers self-service access to numerous resources and information, as well as real-time engagement through chat and instant messaging. Virtual self-service • Members log on to the Health Advocate website/app • Complete a virtual assessment • Choose a provider • Schedule their own appointment Digital Cognitive Behavioral Therapy (dCBT) Self -guided resource features evidence -based content, practical resources and inspiration to change thinking patterns and improve quality of life. Personalized Legal Center State-of-the-art legal library and state -specific templates to create wills, powers of attorney, rental agreements and more. Free consults with Legal Specialists and discounts if retained. Financial Fitness Center The latest resources to help employees reach their financial goals - budgeting, debt management, taxes, retirement planning and more. Free Financial Specialist consults and discounts if retained. Additional tools and resources • Leading -edge educational content across the emotional well-being spectrum • Courses, webinars, and personalized assessments • Content specific to users' needs and preferences �I HealthAdvocate ©2024 Health Advocate Life & Emotional Health Health Advocate Proposal Compassionate, in -the -moment support Our in-house clinicans offer caring, in -the -moment support when coaching on incredibly personal issues. With our hands-on approach and multiple ways to engage with us, we tailor our interactions to the needs of each individual. WR Live intake and in-depth clinical assessment U° Personalized care plan e Guidance to the most appropriate level of support: Q. Self -guided • In -person • Phone • Video Instant access to all program services Hassle -Free Claims — Health Advocate works closely Over 85% with virtually every health plan, so members can count of cases are on continuity of care and seamless integration with their successfully resolved within the program carrier's mental health network. Expansive open provider network Health Advocate has an extensive open network of over 65,000 licensed professional counselors in the U.S., Canada and Puerto Rico. Our program is Knox -Keene Licensed in California. Covering a wide range of specialties: �� • Stress • Gender identity • Anxiety • LGBTQIA+ • Depression • Substance abuse • Relationships • Trauma �-JtHealthAdvocatei" ©2024 Health Advocate Life & Emotional Health Health Advocate Proposal Complete end -to -end support Our solution supports mental and physical health, legal and financial wellness and work/life balance, as well as the health of your organization. Short -Term Mobile Leadership Onsite Counseling & Lifestyle and Online Support & Virtual Coaching Referrals Tools Center Training 24/7 Clinical Legal and Unlimited Disruptive Executive and Work/Life Financial Management Event Support Support Support Consultations Support (DEM) Program Work/life balance and optimal performance Work/life balance is essential to a healthy and productive workforce. Our team of trained experts helps ease the burden of everyday stressors by researching and arranging local resources — ensuring employees stay focused. Legal & Financial Concerns Relocation Issues Eldercare Time Management Childcare Identity Theft ©2024 Health Advocate (..::. HealthAdvocateM Organizational Support Health Advocate Proposal Focus on leadership and HR Our program recognizes that the stronger your leadership, the stronger your organization. That's why we provide the following valuable services: r- Management Assistance Program Managers and supervisors have unlimited telephonic access to our specialists for guidance on a variety of employee and workplace issues. Leadership Trainings and Workshops* Sessions empower management to learn new skills and techniques to strengthen overall performance. Leadership Referrals Our EAP Professionals consult with supervisors and managers on sensitive employee situations. Substance Abuse Professional (SAP) Evaluations* 2417 Disruptive Event Management Services Customized services help organizations quickly react and respond to events that impact employee productivity and well-being. Critical Incident Support for: • Natural disasters • Employee deaths • On-the-job accidents • Workplace violence • And more Violence Prevention Support Includes: • Threat Management Team • Threat of Violence Consultation • Fitness for Duty Evaluation with Violence Screen • Corporate Security Integration • Physical Security Audits • And more ©2024 Health Advocate (.,::. HealthAdvocateM Communications Health Advocate Proposal Educate... Promote... Engage! Our program includes a suite of materials and support to educate your leadership team, leverage your internal communications and keep everyone engaged. For Employees @1 Educational emails 0 Flyers Posters & awareness campaigns Home mailings* Digital monthly member newsletter rQ Promote the Health Advocate website and app For Leadership Employee benefit awareness sessions Manager training sessions* L=. Webinars Online trainings and coursework Ro+lh Onsite workshops* Health Advocate helps the whole family — Employees, spouses/partners, dependents, parents, parents -in-law ©2024 Health Advocate (..::. HealthAdvocateM Reporting Health Advocate Proposal Real-time reporting, driven by data and Al Measure the value and impact of our programs using real-time, interactive and integrated reporting tools. Abb F G 0 Engagement Cases across all percentage programs ` Soso U _ 0 0 © 0 Savings Memberjourney Satisfaction AI -driven and ROI insights scores recommendations Health Insights Dashboard* Key claims metric comparisons between time periods, individual health plans and sub -organizations Medical and pharmacy claims trends and outcomes Measurement against market trends and key cost savings opportunities Enhanced reporting on: • High -cost claimants • Chronic medical conditions • Pharmacy spending • Predicted risk 39,537 s129.6M 1 w 0.88 3S Re * Claims data required ©2024 Health Advocate (..::. HealthAdvocateM Pricing Life & Emotional Health (EAP) 1-6 face to face sessions $1.75 PEPM* Terms & Conditions Rates guaranteed through 09/30/2027. Pricing expires 60 days from the date of this proposal. Communications Materials: Health Advocate provides standard communications materials to clients for distribution to employees who are eligible for the program. *Life & Emotional Health (EAP) includes per issue, per member for in -person, video, & telephonic chat counseling, also includes family and work/life balance, financial wellness, legal services, concierge services, & Digital Cognitive Behavioral Therapy (dCBT). On -site support that is needed for any on -site training and/or disruptive event management is a fee of $275 per hour, plus travel expenses. ©2024 Healch "d t- 6 HealthAdvocate About Us Health Advocate Proposal Helping employers care for their employees & families in all ways. Always. Health Advocate offers a broad spectrum of integrated solutions that make healthcare easier and get people fully engaged in their health and well-being. A whole -person population health solution for everyone k* GUIDE ENGAGE M OWER IN PIRE PROTECT Health Advocacy Clinical Care Life & Emotional Personalized Health Screenings & Navigation Management Health (EAP) Well -Being & Vaccinations Member Website/App NCQA-Certified We welcome the opportunity to find out more about your organization's challenges so we can design a customized solution to meet your specific needs. We thank you for your consideration. Ashley Molina Client Success Executive, Channel 551.697.8212 amolina@HealthAdvocate.com (.,::. HealthAdvocateM @2024 Health Advocate Testimonials Health Advocate Proposal What our members are saying... It's important to me that Health Advocate was knowledgeable about LGBTQIA+ issues, and it's a testament to good mental health services that include everyone. It's a great resource for everyone. As a manager, I definitely let my people know it's available. I took the tobacco cessation workshop and have been tobacco -free for 6 months. I love the motivation my Wellness Coach provides. It has given me the extra push to live a healthier life. Both of the nurses were super helpful and knowledgeable. They were a voice when I didn't have one. My issue was big, but my advocate didn't stop until I had what I needed. Thankyou! This was a 10 out of 10 experience. I wish everyone had someone like you to help with situations like mine. The nurse was phenomenal with understanding our case and contacting providers to try to resolve our issue. The service provided by Health Advocate is truly remarkable. I would have paid thousands of dollars that I didn't truly owe. Health Advocate has always had my trust since they became a resource many years ago. Keep up the excellent work. My experience was top -tier, as they are available 24/7. Thank you. This is the best and most effective benefit my company provides. I've had very good experiences with the EAP, and I refer people all the time. I'm going through caregiving issues with my parents, and you find resources for me anytime I need help. I would probably not be in therapy now if I had to navigate the process of finding a therapist in my area. My advocate navigated that daunting and unpleasant process for me. They resolved my issue with minimal involvement on my part. This allowed me to focus on my work and not chasing healthcare workers. ©2024 Health Advocate (.,::. HealthAdvocateM City of Southlake RW 2024 Renewal Summary Policy 758490 Thank you for choosing Standard Insurance Company (The Standard) as your employee benefits partner since October 1, 2019. We appreciate your business and the opportunity to renew our commitment. We strive to provide City of Southlake and your employees outstanding value, expertise and personal service. As always, our goal is to help you take care of your business and your employees. Our team remains committed to helping you achieve strategic goals for your benefits program, streamline administration and increase employee satisfaction. In short — better results with less noise. Thank you again for your continued business. Our Approach to Renewals — Continued Partnership The renewal rates for your Group Life, Disability insurance will be effective October 1, 2024. In designing fair renewal pricing, we may review three components of rating: 1. The Manual Rate: We use your current census file demographics, plan design, industry and location to determine a rate for your coverage based on The Standard's book of business of other similar customers. We do this for groups of all sizes. 2. The Experience Rate: In addition, we may use your past claims history to help us determine your renewal rates. Whether we use your claims history — or don't include it — depends on the size of your group and the lines of coverage inforce. Especially for large groups, past claims experience can be a fair and useful predictor of future liability. 3. The Blended Rate: If applicable, we use a formula to determine how credible your Experience Rate is in predicting your future claims cost and blend it with your Manual Rate. This produces a Blended Rate that we use to determine your final renewal pricing. In this package, you'll see an experience table if we've used your claims history in our renewal pricing for a particular line of coverage. Otherwise, your renewal pricing is based solely on your manual rate. Please consider this renewal package the next step in our ongoing conversation about how we can best meet your needs. We may be able to work together to help you get more value out of your benefits program or reduce overall costs. We'd be happy to re-evaluate your plan design and benefits usage and discuss your options. Your Basic Life Renewal We understand that handling a Life insurance claim takes a special touch. Our Life benefits analysts complete annual grief training. This program helps them empathize with beneficiaries and recognize when they need special attention. We strive to help you make a tough time easier. Our goal is to provide support with easy claim filing, timely decisions, and prompt payment of approved claims. Census Demographics for Basic Life Female Lives 104 112 Male Lives 237 260 Benefit Volume $15,954,700 $17,995,200 % Benefit Volume Age 50 + 29% 25% Based on our thorough analysis, we're offering the renewal rate[s] listed below. October 1, 2024 $0.070 $0.070 * Rate mode is Per $1000 of Benefit ** Final premium change will be determined based on your group's composition at billing time Rate will be guaranteed for 2 years until October 1, 2026. 23 $2,040,500 -4% $0 The Standard is committed to helping you provide employees and their beneficiaries with the support they need. Below is a reminder of the additional services and tools offered with your Life plan. The Life Services Toolkit For employees, online services include estate planning and state -specific will preparation, identity theft prevention, financial calculators, wellness resources and more. For beneficiaries, the Life Services Toolkit offers grief and loss support by phone, online and face-to-face. They can also take advantage of access to financial counselors, legal consultation and other support services. This service is offered through a vendor that is not affiliated with The Standard. Travel Assistance Travel Assistance can provide a sense of security for your employees and their eligible family members anytime they travel with minimal restrictions. Available 24 hours a day — with access online or through a single phone call — Travel Assistance offers a full range of trip planning and travel support, including emergency evacuation services and medical, legal, and translation service referrals. This service is offered through a vendor that is not affiliated with The Standard. Your Additional Life Renewal Your Additional Life insurance from The Standard allows you to expand the benefit options you offer your employees. Your Additional Life plan can offer choice, flexibility, convenience and greater peace of mind for employees. Census Demographics for Additional Life Female Lives 41 40 -1 Male Lives 128 130 2 Benefit Volume $22,285,000 $23,285,000 $1,000,000 % Benefit Volume Age 50 + 27% 25% -2% Based on our thorough analysis, we're offering the renewal rate[s] listed below. Age Graded Rates for Additional Life: 0 — 29 $0.058 $0.058 $2,840,000 $0 30 — 34 $0.061 $0.061 $2,570,000 $0 35 — 39 $0.075 $0.075 $5,640,000 $0 40 — 44 $0.117 $0.117 $3,750,000 $0 45 — 49 $0.184 $0.184 $2,740,000 $0 50 — 54 $0.286 $0.286 $2,840,000 $0 55 — 59 $0.456 $0.456 $1,010,000 $0 60 — 64 $0.570 $0.570 $1,825,000 $0 65 — 69 $0.820 $0.820 $50,000 $0 70 — 74 $1.348 $1.348 $10,000 $0 75 and over $4.280 $4.280 $10,000 $0 Total Monthly Premium Change: $0 Rate mode is Per $1000 of Benefit Age Graded Rates for Spouse Life: 0 - 29 $0.093 $0.093 $120,000 $0 30 - 34 $0.093 $0.093 $370,000 $0 35 - 39 $0.114 $0.114 $720,000 $0 40 - 44 $0.164 $0.164 $350,000 $0 45 - 49 $0.247 $0.247 $430,000 $0 50 - 54 $0.392 $0.392 $620,000 $0 55 - 59 $0.630 $0.630 $260,000 $0 60 - 64 $0.966 $0.966 $190,000 $0 65 - 69 $1.638 $1.638 $0 $0 70 - 74 $3.108 $3.108 $10,000 $0 75 and over $6.278 $6.278 $10,000 $0 Total Monthly Premium Change: $0 * Rate mode is Per Thousand ** Final premium change will be determined based on your group's composition at billing time Rate will be guaranteed for 2 years until October 1, 2026. Your Long Term Disability Renewal The Standard's Long Term Disability insurance helps your employees protect a portion of their incomes. Our holistic approach can also support productivity by helping employees stay at or return to work. This coverage includes a Reasonable Accommodation Expense Benefit, which reimburses employers for approved workplace modifications of up to $25,000 that enable disabled employees to return to or remain at work. The Reasonable Accommodation Expense Benefit is separate from the LTD benefit payment. Census Demographics for Long Term Disability Female Lives 104 112 8 Male Lives 237 260 23 Benefit Volume $2,011,707 $2,502,528 $490,821 % Benefit Volume Age 50 + 33% 28% -5% Experience Data for Long Term Disability Adjusted Premium $257,856 Incurred Claims $174,300 Number of Active Claims 2 Number of Closed Claims 0 Experience Rate 0.27 Credibility 25% Manual Rate 0.22 Blended Rate ' 0.24 * Blended Rate = (Experience Rate) (Credibility) + (Manual Rate) (1-Credibility) Based on our thorough analysis of the plan and future expected claim experience, we're offering the renewal rate[s] listed below. October 1, 2024 $0.236 $0.236 $0 * Rate mode is Percent of Insured Earnings * Final premium change will be determined based on your group's composition at billing time Rate will be guaranteed for 2 years until October 1, 2026. The Standard is committed to offering services that help employees feel successful at work and at home. To make sure you're aware of what's offered with your LTD plan, we've highlighted key services below. Employee Assistance Program The Employee Assistance Program (EAP) can help employees and managers resolve personal and workplace issues. The EAP provides 24/7 support from masters-degreed clinicians by phone, online, live chat, email and text. Employees and family members can receive referrals to support groups, a network counselor, community resources and face-to-face counseling sessions. EAP services can help with depression, family issues, life improvement, addictions, financial concerns, workplace conflicts and more. The EAP can also be connected to your health plan and other benefits you offer. This service is offered through a vendor not affiliated with The Standard. Thank You and Next Steps We appreciate the opportunity to continue our partnership with City of Southlake. A summary of our Renewal Offer is in the chart below. Thank you for allowing Standard Insurance Company the opportunity to support your insurance needs. Basic Life Travel Assistance Basic AD&D Additional Life Spouse Dependent Life Member AD&D Spouse AD&D Child AD&D Child Dependent Life LTD Employee Assistance Program *The above shown rates are monthly. $0.070 Per $1000 of Benefit Included in Rates for Life $0.025 Per $1000 of Benefit Rate Varies Rate Varies $0.030 Per $1,000 of Benefit $0.030 Per $1,000 of Benefit $0.030 Per $1,000 of Benefit $0.200 Per $1000, Elective $0.236 Percent of Insured Earnings Included in Rates for LTD $0.070 Per $1000 of Benefit Included in Rates for Life $0.025 Per $1000 of Benefit Rate Varies; No Change Rate Varies; No Change $0.030 Per $1,000 of Benefit $0.030 Per $1,000 of Benefit $0.030 Per $1,000 of Benefit $0.200 Per $1000, Elective $0.236 Percent of Insured Earnings Included in Rates for LTD You can count on us to help you retain and attract employees by providing the benefits and services they value — now and for years to come. We're always available to address any questions you have about this renewal or for any service needs. Please reach out to the Dallas group office at (800) 727-7112 and we'll be happy to help.