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HomeMy WebLinkAboutResolution No. R24-36A RESOLUTION OF THE CITY COUNCIL AUTHORIZING THE MAYOR TO SIGN AGREEMENTS WITH JOINT POWER TRUST AND MUTUAL OF OMAHA FOR THE PROVISION OF THE EMPLOYEE HEALTH INSURANCE BENEFIT D RELATED PROGRAMS FORCITYLAUREL DEPENDENTS. WHEREAS, the City Council (hereinafter "City Council") of the City of Laurel (hereinafter "the City-) previously authorized the City's Health Insurance Committee to seek competitive information and quotes to provide health and related insurance for the City's employees and dependents; WHEREAS, the City sought competitive information and quotes to ensure that the selected parties will provide satisfactory health and related insurance coverage for the City's employees and dependents, as well as to ensure that the proposals would be in the City's best interests; WHEREAS, the City's competitive process of achieving quotes included quotes for employee health insurance, dental insurance, VSP (eye) insurance, short- and long-term disability coverage, and life insurance; WHEREAS, City Staff and the Health Insurance Committee reviewed various proposals and determined that the proposals submitted by Joint Power Trust and Mutual of Omaha are the most responsive to the City's needs and requests for appropriate and comprehensive health and related insurance coverage for City employees and dependents, and City Staff and the Health Insurance Committee hereby recommend approval of the same proposals; WHEREAS, in addition, the City has sought feedback from City employees regarding their interests related to health and related insurance coverage, and the City has evaluated the feedback received from responsive City employees; and WHEREAS, City Staff and the Health Insurance Committee recommend that the proposals submitted by Joint Power Trust and Mutual of Omaha are the most responsive to the City's needs and requests for appropriate and comprehensive health and related insurance coverage for City employees and dependents, and City Staff and the Health Insurance Committee hereby recommend approval of the same. NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Laurel, Montana: R24-36 Approve Change in Health and Related Insurance Providers Section 1: Approval. The City approves the changes in health and related insurance coverage to the following entities: Joint Power Trust and Mutual of Omaha. Section 2: Execution. The Mayor is hereby given authority to execute all related documents needed to ensure the appropriate change in health and related insurance coverage. Introduced at a regular meeting of the City Council on the 14th day of May 2024 by Council Member Mize. PASSED and APPROVED by the City Council of the City of Laurel, Montana on the 14th day of May 2024. APPROVED by the Mayor on the 14th day of May 2024. ATTEST: L��) kISt r, C erk-Treasurer APPROVED AS TO FORM: AlGht-L b6--� - Michele L. Braukmann, Civil City Attorney CITY OF LAUREL Dave Waggoner, Mayo R24-36 Approve Change in Health and Related Insurance Providers ~ > E C = c ❑ 3 3 3 0 3 3 3 c x �'• O O Z N G 3 � D � rOu t05 !09 rOo tOp _ c d J N 3 O C �" •• W N N lA l0 tD a c O < p a c n O � 3 � O O n O C O n 9 C N W d J N O C �" W N N lA l0 tD O < p Vl N N O 3 O O C O O O w W O G to N N lf1 0 O 0 O IN H N po W N O S 0 O G 01 J lD lD N ? O .0 N N N N 0 0 N G � en > r A O N v'a"o w N N W W N > O N O N O O IN O C O N 0 � N lfl H O W ? 01 (i1 NOS Vl W > C O W O < p Ol p1 � W po Ol � N Q' � 0 N N O O V N O Cil QOj O O V tD V W i.l V S O O lh O A Vl N O O O O 0 G W Vl NO D N W po Ln N W V Cil O O O m m o n �• vl V ? W ? V Gl O O 0 O O o � O O O W rD rD O N W W Vf G G lA t00 W W Ol O O O T 9 C N W d J N O C �" W N N lA l0 tD O? NO D V' N N O 3 O G to N N In n to N N N > r A O N N N O O C O N > C O W p1 � W po Ol � N Q' � 0 N N W V N O Cil QOj O O V tD V W i.l V S lh O A Vl N O O O O 0 G W Vl NO D N W O O O O 0 O O W r r O N W W Vf V>i lA t00 W W Ol O O O T tp In O � b W N W W O N O C c p Q 0 O Vl 0 O N sa — < N N W INJI Q s fD i Q� fD �i O O - O 1-• � p O O 9 i,UP Dante Olson I Abigail Cool 406-532-87641406-373-8624 Plan Employee Base Life Amount Accidental Death & Dismemberment Guarantee Issue Amount Employee Rate per $1,000 Employee AD&D Rate per $1,000 Estimated Group Monthly Premium Estimated Group Yearly Total Rate Guarantee Plan Weekly Benefit Minimum Weekly Benefit Maximum Weekly Benefit Maximum Benefit Period Employee Rate per $10 Estimated Group Monthly Premium Estimated Group Yearly Total rfri7l+:A aCii°_il�Cuif�.ilEl�illi'V, Plan Benefit Amount Maximum Monthly Benefit Minimum Monthly Benefit Elimination Period Max Benefit Period Own Occupation Period Employee Rate per $100 Estimated Group Monthly Premium Estimated Group Yearly Total City of L2urel Group Paid Life, STD & LTD Comparison Dearborn/UNUM Mutual of Oma ha Mutual of Omaha Group Paid Life $15,000 & $10,000 Group Paid Life $25,000 Retiree Life $10,000 $15,000 & $10,000 $25,000 N/A $15,000 & $10,000 $25,000 510,000 $0.26 $1,301.36 $2.750 $15,616.32 $0.04 NA $525.12 & $281.40 $421.88 $195.25 $9,678.24 $5,062.56 $2,343.00 3 year Rate Guarantee Savings - $4,615.6 Unum Mutual of Omaha Group STD 60% Group STD 6045 $25 $25 $1,000 $1,000 11 weeks 11 weeks NA 24 Months $0.26 $1,301.36 $1,134.23 $15,616.32 $13,610.76 3 year Rate Guarantee Unum Group LTD 60% Mutual of Omaha Group LTD 60% $6,000 $6,000 $100 $100 or 10% 90 days 90 days RBD to SSNRA RBD to SSNRA NA 24 Months $0.37 $1,758.90 $1,166.53 $21,010.88 $13,998.36 3 year Rate Guarantee 3 year Rate Guarantee Savings - $2,005.56 Savings - $7,012.52 Life Proposal Voluntary/Employee Paid Product Benefit reduction on retiree: A^e 70.65% A^,c 75 - WN Total Savings: $13,633.76 -nm m m y m m m 20 go r () (A < = N 0 N W v W W lD W Nti N N o � -I! J v O m W � v m G) c M rD V)- tf). ifl. to Oo -P, 4�1 N 00 V (.n W 00 .p CDv a G) c n, N Q N A ih N U7 N W N p W Ul N N O o 7 3 rr rr •G �G O � rD olorn rn CIO i-+ N ..Na a m in �o p E W v o n Z n Y� D 7" O' ej lA (D n• < v N 0 a = x d (D C1 7 C T O3 — <' -O 3 a O O_ N n c N N (p (" °° C w o z c, W v 0 o 0 C) \ o (n .Y O -- D 0 0 0 rD m 00 oo v o d p o — (p � m � 3 Q z O ,�, Ln Q1 C C C) z z W O z �p y 0 0 o O Oj O —4 rD 0GQ 0, Ln rD o 0 77 fuS _ y 4::� C) rD , 0 rn � 00 Z t!) o O S 01 (JJ 0 00 O i rD v 3 v � r-s• rD m O z rb �"h N N N J A In A A W N lf, N tD A A N N O N CD �; rn v, � uj N 0 - IF 00 OOD" �,iiJl OA O) W - V n W 0 & Ocli_ N �A C f7 0 3 0 r �l 3 o T D m m m m m m m z (1 T O O O O d j mRn3M.=�, C: ID [rD 0omNID a O z 3 < o v � m fD O T 3 3 N N i i 0 o n OtWn D O O N N n w co o N �' N O V O O _D i N In o N O to a, N In co OO W O In of Vf a, V~i l~nn n A C, N N O O O O In a a � v O < G vs v� N in to v> a 'D N to �-+ m c t!1 N ol 10 W l!1 w _ mrD 00 � V W60 N A N co In co co N y o a N \ In O to 3 A N O O N N N CL 3 o o s d CD �; rn v, � uj N 0 - IF 00 OOD" �,iiJl OA O) W - V n W 0 & Ocli_ N �A C f7 0 3 0 r �l 3 i Proposal for -urel of La t i _D ' i i,: i e C-� e. _t - fP7 C) i g'a Y7;l.r t�i i$ The JPT a td EMVIS Advantage rj7 n, iIIss .a 7 at?Oj`j tL We aneterstand the cost drivers of health care Today and have responded ,,with comprehensive quality ben -fit offerings vrluch help our Plans — and their rnerabers — effect±vely mitigate rising health Care costs. While the J -PT ;provides benefit programs chat focus on individuals who have been diagnosed with a chronic health condition or have been hospitalized for an illness, we are also concerned with providing programs which focus on preventive health strategies. Determinants of Health Stahis 60% --- 50% __.... 40% - - - i 30% -- - I 20% -------- --- i 10% -- 0% Access to Genetics Environment Behavior i Care Source: Center for Disease Control and Prevention The JPT and EBMS have been partners in providing comprehensive benefit plans to governmental and publicly funded entities for more than twenty-five years. The strategies utilized within this partnership have enabled the JPT to provide stable rates and continually improving services throughout this period. Below you will see some of the services that the JPT provides to all fully pooled groups through EBMS. Thank you. for the apportu.ni(y to l-eview and issue a proposal jor . Listed below, please find the rates being proposed by the joint -Powers Trust. The next page contains a brief explanation of the requireinents associated with this proposal. National health benefit plan costs continue to climb every year. Reasons for this increase include an aging population, swelling medical technology costs, growing hospital expenditures, rising prices and utilization of prescription drugs, poor lifestyle choices, and medical malpractice costs. The Joint Powers Trust must fund this annual inflation in order to remain solvent and continue to pay claims. Historically, the JPT average rate increase has remained well below that of the national trend. The JPT combats these rising costs by acknowledging the biggest cost drivers, providing services such as the Wellness and Prevention initiatives managed by our partner, It Starts With Me, and aggressive hospital provider contracts to control them. There are also multiple care management programs in place that also help significantly in controlling costs. Our integrated programs provide triggers that automatically refer cases that may benefit from the appropriate Care Management Program. Utilization Management deals with any inpatient admission. Case Management handles significant diagnoses that require a special level of management. Recently added is the Enhanced Case Management Program, which intervenes in cases that do not feed into the "normal" Case Management queue, in situations where a covered member may be heading toward catastrophic condition(s) and the resulting high dollar claims. The UM and CM Programs are URAC accredited through our partner, American Health Holdings. All claims experience in excess of $30,000 is fully pooled among the JPT groups. Therefore, your organization is less likely to be adversely affected by an employee with large claims. ' e pooling of experience ensures consistent rate adjustments and guards against the unpredictability that results when a plan stands alone. Without the benefit of pooled clainns, groups tend to experience greater fluctuation in rates, where one year's increase is incredibly high, but the next may be extremely low. The JPT also uses a fiscally sound approach to the proposal and renewal processes. The JPT sloes not use artificially low premium proposals in order to attract new business, nor are irresponsibly low renewals offered in order to retain business. The JPT offers a reliable solution and long-term approach. The JPT offers very low overhead and administrative costs, thereby allowing the bulk of premiums to be applied towards claims payment. ® ID Cards will have DED/OOP amounts included. Please let your membership know new ID cards will be sent out the month prior to your renewal. ® OON Balance billing — OON Emergency services, Air Ambulance, and non -network provider services at in network facilities are no longer allowed. If a member does receive a balance bill, please direct them to contact ELAP at the phone number on the EOB. ® Provider Directories — EBMS maintains the First Choice provider directories through the miBenefits platform. If a member has questions, they can call into our customer service center. Single $541.72 $807.67 $638.45 $561.83 Erri -ployee/Spo use $1,826.29 $1,750.74 $1,375.62 $1,2-10.55 Em-ployee/Chi Id(re ii) $1,3-19.29 $1,265.111 1 $995.25 $875.82 Fairtily $2,093.35 $2,006.54 $1,575.20 $1,386.18 Medicare Retiree Single $462.95 $444.22 $35'1.15 I 'Vledi- -are Retiree 2 Party $1,004.46 $962.90 $756.59 $665.80 Retiree 2 Party 1<1>65 $1,304.67 $1,251.39 $989.59 $870.84 Employee $ 29.93 $ 37.60 Employee $5.90 Employee Spouse $ 59.86 $ 75.19 Employee Spouse $13.75 Employee Children $ 62.86 $ 78.95 Employee Children $14.87 Employee Family $ 89.79 $ 112.78 Employee Family $25.17 ic) Please note, the JPT quote offered above is an approximation of the current benefits. The rates do include a base VSP vision exam benefit, and covered members can elect to purchase vision hardware benefits under the "buy -up" option. *An additional $1 in premium is assessed to Dental/Vision only members for COBRA tracking purposes. **$30 PEPM Commission included in rates. ***$10k of Life/AD&D included in rates. ****Proposal includes a 2nd year maximum increase guarantee of no more than 8.5% Please indicate your acceptance of the proposal by signing below. �7yf ��- By City of Laurel Please send signed/dated proposal to your Agent or Broker, or to: Maci Salazar, Relationship Manager Email: Msalazar@ebms.com '5� - , " 11-.5;Zwe Date