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
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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
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Proposal for
-urel
of
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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