Reso 2009-1390 - Laserfiche WebLink

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same as last year: provide for the same level of benefits with a national provider. Proposals were submitted to the following 8 firms with their response indicated: 1. Aetna- Quoted 1 plan 2. BCBS- Quoted 1 plan 3. Cigna- Still waiting for their decision 4. United-Quoted 2 plans 5. NHP-Quoted 1 plan 6. A vMed -Quoted 7 plans 7. Humana-Declined due to claims history 8. Vista - Verbally declined due to claims history, but have not yet received letter After extensive negotiations with Brown & Brown, the City's current health care provider, United Health Care (UHC), submitted a 'best and final offer' that proposed a 39.65% increase based on the City's claims history. This was essentially a 'take it or leave it' approach. Brown & Brown represents other UHC clients and they experienced rate increases ranging from 12% - 60%, with an average of approximately 30%. Per Siver Insurance Consultants, state-wide increases in health insurance for 2009 are expected to range from 10.5% to 14%. Based on the amount of the increase from UHC, City staff met with representatives from AvMed on Wednesday, February 4, 2009. The meeting was facilitated by Robert Hollander and Samantha Alvarez from Brown & Brown Insurance. Representatives from all city departments participated in the session. After two hours of discussion and an in depth question & answer session, the consensus of the City team was to move forward with the A vMed proposal for health Insurance. A vMed is a Florida based company that is known for their quality service and willingness to work with customers that have a one-time spike in claims and they have a large number of local government clients. Other Brown & Brown customers have found that there is not much difference between UHC participants (physicians, hospitals, clinics, etc) and A vMed participants. All Brown & Brown AvMed customers had a renewal rate of less than 10% this past year. The proposal A vMed submitted to the City is actually a slight decrease (2.5% for a Single Person) from our current rates with UHC. A vMed offers plans comparable to the three plans currently offered by the City (HMO, POS and NHP). There are also some coverage differences in the form of deductibles and co-pays that will help the City in controlling costs in the future. This information will be covered in detail with employees at upcoming informational and enrollment meetings. Based on the above, the City's review team fully concurs with the Brown & Brown recommendations (attached) which include: . Selection of A v Med as the healthcare provider with a slight decrease (1 % - 2 %) in annualized premiums. The plans selected are the HMO-OA 5228, POS-OA 5011 and HMO-OA 5076. The third plan is the lower cost option that we started making available last year. On an annual basis the total annual premium paid for these coverages will decrease by approximately $15,000. . Selection of Lincoln Financial Group as the provider for dental, life, disability and accidental death & dismemberment (ADD). This switch was planned for last year so that