Item 5H-5L AudioITEMS 5H - 5L
Approve contracts to provide
embJAvee insurance benefits
Integrity 1 Innovation 1 Accountability 1 Commitment to Excellence 1 Teamwork
Background
■ RFP issued May 2006 for employee benefits to
include:
■ Medical
■ Dental
■ Group Life (basic, voluntary, AD&D)
■ Long term disability (LTD)
■ Flexible Spending Accounts (Section 125)
■ Vision coverage
Integrity 1 Innovation 1 Accountability 1 Commitment to Excellence 1 Teamwork
RFP Process
■ Proposals received June 26, 2006
■ 28 companies provided 57 proposals for various
benefits
■ Evaluation Criteria
■ Experience and reputation (30)
■ Schedule of benefits (20)
■ Rates (30)
■ Network access / penetration (10)
■ Reporting / cost management _(10)
Integrity 1 Innovation 1 Accountability 1 Commitment to Excellence 1 Teamwork
ITEM 5H
Approve a contract with Aetna to
provide employee medical
benefits
Integrity 1 Innovation 1 Accountability 1 Commitment to Excellence 1 Teamwork
Aetna — medical benefits
• (3) bids received —Aetna, UHC, BCBS
• Aetna, UHC invited for finalist presentation
• Highlights:
—Aetna initial proposal 22.9% inc.
• Same as current plans (HMO, PPO)
— UHC proposal
• less benefits, retiree rates separate, single op
tio
PPO
Integrity 1 Innovation 1 Accountability 1 Commitment to Excellence 1 Teamwork
Aetna — medical benefits
Aetna proposal after negotiation: 7.3% inc!
— Modest increase in co -pays, deductibles
— Incorporate most recent claims data favorable to City
— Concession from Aetna for multiple lines of coverage
Advantages to stay with Aetna:
— Best plan benefits with lowest cost
— Very good customer service over past two years
— Less disruption to employees
• (Aetna provider for 9 of last 10 years)
— Advantage to have medical and dental with one carrier
Within budgeted amount for FY2006-07
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Integrity 1 Innovation 1 Accountability 1 Commitment to Excellence 1 Teamwork
Approval of contract with Aetna to
provide employee medical benefits
Staff Recommendation: Approval
Integrity 1 Innovation 1 Accountability 1 Commitment to Excellence 1 Teamwork
ITEM 51
Approve a contract with Aetna to
provide employee dental benefits
Integrity 1 Innovation 1 Accountability 1 Commitment to Excellence 1 Teamwork
Aetna — dental benefits
• (15) bids received
• Aetna proposal: 4.0% inc.
• Highlights-
- Same as current plan
10— Offers DMO/PPO option and ability to switch
— Discount on medical rate
• Within proposed budget for FY2006-07
— Estimated City s �$74,252 annual
Integrity 1 Innovation 1 Accountability 1 Commitment to Excellence 1 Teamwork
Approval of contract with Aetna to
provide employee dental benefits
Staff Recommendation: Approval
Integrity 1 Innovation 1 Accountability 1 Commitment to Excellence 1 Teamwork
ITEM 5J
Approve a contract with Standard
Insurance Company to provide
employee basic and voluntary
group life and AD&D insurance
benefits
Integrity 1 Innovation 1 Accountability 1 Commitment to Excellence 1 Teamwork
Standard Insurance — group life
and AD&D
• (10) bids received
• Standard offers best benefit package with lowest cost
• Highlights:
— Open enrollment period for employees, dependents
— "Line of duty" benefit for police and fire
• Up to additional $50,000 for police, fire personnel killed in line of
duty
• Cost $0.01/$1000 = $100 / month
— Total proposed rate less than current rate
• Savings of approximately $4,OO�i
— 3-year rate guarantee
• Within proposed budget FY2006-07
— Estimated City cost: $14,692 annual
Integrity 1 Innovation 1 Accountability 1 Commitment to Excellence 1 Teamwork
Approval of contract with Standard -
Insurance Company to provide
employee basic and voluntary group
,life and AD&D insurance benefits
Staff Recommendation: Approval
Integrity 1 Innovation 1 Accountability 1 Commitment to Excellence 1 Teamwork
ITEM 5K
Approve a contract with CIGNA to
provide employee long term
disability (LTD) benefits
Integrity 1 Innovation 1 Accountability 1 Commitment to Excellence 1 Teamwork
CIGNA — LTD benefits
• (4) bids received
• CIGNA offers best benefit package with lowest
cost
Highlights-
- Comparable benefits to current plan
— Proposed rate less than current rate
• Savings of approximately $3,400 / year
— 2-year rate guarantee
Within proposed bud Y2006-07
Estimated City cost $26,000 annual
a�,
�� Integrity 1 Innovation 1 Accountability 1 Commitment to Excellence 1 Teamwork
Approval of contract with CIGNA to
provide employee long term disability
(LTD) benefits
Staff Recommendation: Approval
Integrity 1 Innovation 1 Accountability 1 Commitment to Excellence 1 Teamwork
ITEM 5L
Approve a contract with Total
Administrative Services
Corporation (TASC) to provide
employee flexible spending
account (Section 125),nefits
Integrity 1 Innovation 1 Accountability 1 Commitment to Excellence 1 Teamwork
TASC — Section 125 Administration
• (4) bids received
• TASC offers best administration benefits with lowest
cost
• Highlights:
— Additional benefits over current plan
• FSA debit cards, direct deposit of reimbursement checks
• On-line enrollment, self-service
Proposed costs less than current provider
• Savings of approxi 1,000 / year
— 2-year rate guarante
• Within proposed budget for FY2006
Integrity 1 Innovation 1 Accountability 1 Commitment to Excellence 1 Teamwork
Approval of contract with Total
Administration Services Corporation to
provide employee flexible spending
account benefits
Staff Recommendation: Approval
Integrity 1 Innovation 1 Accountability 1 Commitment to Excellence 1 Teamwork
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