Item 4E AudioItem 4EItem 4E
Approve renewal of Approve renewal of
contract with Aetna for contract with Aetna for
employee medical and employee medical and
dental benefits dental benefits
City of Southlake Strategy MapCity of Southlake Strategy Map
The City of Southlake provides municipal services that support the The City of Southlake provides municipal services that support the highest quality of highest quality of
Fulfill OurFulfill Our
lifelifefor our residents and businesses. We do this by delivering for our residents and businesses. We do this by delivering outstanding value outstanding value and and
MissionMission
unrivaled qualityunrivaled qualityin everything that we do.in everything that we do.
Deliver on OurDeliver on Our
Safety Mobility Infrastructure Performance Management Quality PartnershipsSafety Mobility Infrastructure Performance
Management Quality Partnerships
and Securityand Securityand Service Delivery Developmentand Service Delivery Developmentand Volunteerismand Volunteerism
Focus AreasFocus Areas
C3 Provide attractive C4 Attract and keep top-tier
C2 Provide travel
C1 Achieve the
Serve OurServe Our
and unique spaces for businesses to drive a
convenience within
highest standards of
CustomersCustomers
enjoyment of personal dynamic and sustainable
city and region
safety and security
interestseconomic environment
B2 Collaborate with
B1 Implement andB3 Pursue
B5 Optimize
B4 Provide high
Manage theManage the
select partners to
share best practices innovative service
use of
quality customer
BusinessBusiness
implement service
across all departmentsdelivery options
technology
service
solutions
ProvideProvide
F3 Invest to provide and
F1 Achieve F2 Maintain or F4 Maximize
FinancialFinancial maintain high quality
competitive financial improve AA bond return on
public assets
StewardshipStewardship
benchmarksratinginvestments
L5 Actively promote
L1 Ensure our people
L2 Enhance L3 Attract, L4 Recognize
PromotePromote
opportunities for partnerships
understand the
leadership develop and and
LearningLearning
and volunteer involvement
strategy and how they
capabilities to retain a skilled reward high
and Growthand Growth
(individual and group)
contribute to it
deliver resultsworkforceperformers
Live Our Core ValuesLive Our Core Values
Integrity Integrity ƔƔInnovation Innovation ●●Accountability Accountability ●●Commitment to Excellence Commitment to Excellence ●●TeamworkTeamwork
BackgroundBackground
Insurance products bid in 2006Insurance products bid in 2006
••
Aetna awarded medical, dentalAetna awarded medical, dental
––
Aetna has been City provider since 1996 except for 14 Aetna has been City provider since 1996 except for 14
••
month period 2002month period 2002--2003.2003.
Excellent customer service and coverageExcellent customer service and coverage
••
Rate renewals based on:Rate renewals based on:
••
Claims paidClaims paid
––
HMO better than average; PPO highHMO better than average; PPO high
••
Dental averageDental average
••
Health industry “trend”Health industry “trend”
––
Medical inflation, services used, Medicare/Medicaid Medical inflation, services used, Medicare/Medicaid
••
Aetna Rate RenewalAetna Rate Renewal
Plan Plan City Rate City Rate Predicted Predicted Plan Plan
YearYearIncrease Increase TrendChanges Changes
(1)
BeginBegin(Medical)(Medical)(Y/N)(Y/N)
(2)
10-01-20067.3%12.0%Y
10-01-20079.9%11.1%N
10-01-20080.0%10.7%N
10-01-2009*5.0%10.0%N
•Proposed
1.Source: (Segal Health Plan Cost Trend Survey, The Segal Company, www.shrm.org)
2.Plan changes included increased co-pays and deductibles, increased premiums for employees
Aetna Rate RenewalAetna Rate Renewal
•5.0% rate increase; no plan changes.
•Estimated cost increase for FY 2010:
–Medical benefits$60,762
–Dental benefits$2,661
•Funds included in proposed FY 2010
budget.
RecommendationRecommendation
Approve renewal of contract with Aetna for
employee medical and dental benefits for
plan year October 1, 2009 through
September 30, 2010.
Questions?Questions?
Kevin HugmanKevin Hugman
(817) 748(817) 748--81938193