HomeMy WebLinkAbout2017-173-3278 - Agreement with AvmedRESOLUTION NO. 2017-173-3278
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MIAMI
GARDENS, FLORIDA, AUTHORIZING THE CITY MANAGER TO
RENEW THAT CERTAIN AGREEMENT WITH AVMED, INC., FOR
EMPLOYEE GROUP MEDICAL INSURANCE FOR CALENDAR YEAR
2018; PROVIDING FOR THE ADOPTION OF REPRESENTATIONS;
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, in 2013, the City of Miami Gardens conducted a formal bid to obtain
Employee Health Insurance Plan services for Calendar Year 2014, and
WHEREAS, the contract was awarded to AvMed, Inc. ("AvMed"), with the option
to renew annually, as agreeable by both parties, and
WHEREAS, the City's current employee group medical insurance coverage with
AvMed expires on December 31, 2017, and
WHEREAS, AvMed has agreed to a zero percent (0%) increase from our current
2017 rates, resulting in a forty percent (40%) savings, compared to the initial proposal,
with no change to premiums or benefits, and
WHEREAS, City Staff recommends the City Council authorize the City Manager
to renew that certain Agreement with AvMed for employee group medical insurance for
Calendar Year 2018,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF MIAMI GARDENS, FLORIDA AS FOLLOWS:
Section 1: ADOPTION OF REPRESENTATIONS: The foregoing Whereas
paragraphs are hereby ratified and confirmed as being true, and the same are hereby
made a specific part of this Resolution.
Section 2: AUTHORIZATION: The City Council of the City of Miami Gardens
hereby authorizes the City Manager to renew that certain Agreement with AvMed, Inc.,
for employee group medical insurance for Calendar Year 2018, with no increase to
premiums.
Section 3: EFFECTIVE DATE: This Resolution shall take effect immediately
upon its final passage.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF MIAMI
GARDENS AT ITS REGULAR MEETING HELD ON NOVEMBER 8, 2017.
ERHABORiOFfO^DARti J/ICE MAYOR
ATTEST:
RONETTA TAYLOR, j^MC, CITY CLERK
PREPARED BY: SONJA KNIGHTON DICKENS, CITY ATTORNEY
SPONSORED BY: CAMERON D. BENSON, CITY MANAGER
MOVED BY COUNCILWOMAN DAVIS
SECONDED BY COUNCILWOMAN ROBINSON
VOTE: 6-0
Mayor Oliver Gilbert, III (Yes) (No) Not present
Vice Mayor Erhabor Ighodaro, Ph.D. _x (Yes) (No)
Councilwoman Lisa C. Davis _x (Yes) (No)
Councilman Rodney Harris _x (Yes) (No)
Councilwoman Lillie Q. Odom _x (Yes) (No)
Council Woman Felicia Robinson _x (Yes) (No)
Councilman David Williams Jr. _x (Yes) (No)
RESOLUTION NO. 2017-173-3278
18605 NW 27 Avenue
Miami Gardens, Florida 33056
City of Miami Gardens
Agenda Cover Memo
Council Meeting Date:
November 8, 2017 Item Type:
(Enter X in box)
Resolution Ordinance Other
X
Fiscal Impact:
(Enter X in box)
Yes
No Ordinance Reading:
(Enter X in box)
1st Reading 2nd Reading
X Public Hearing:
(Enter X in box)
Yes No Yes No
X
Funding Source:
General Fund Advertising Requirement:
(Enter X in box)
Yes No
X
Contract/P.O. Required:
(Enter X in box)
Yes No RFP/RFQ/Bid #: RFP 12-13-045
X
Sponsor Name
Cameron D. Benson,
City Manager Department: Human Resources
Short Title:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MIAMI GARDENS, FLORIDA, AUTHORIZING
THE CITY MANAGER TO RENEW THAT CERTAIN AGREEMENT WITH AVMED, INC., FOR EMPLOYEE
GROUP MEDICAL INSURANCE FOR CALENDAR YEAR 2018; PROVIDING FOR THE ADOPTION OF
REPRESENTATIONS; PROVIDING FOR AN EFFECTIVE DATE.
Staff Summary:
Background
In 2013, the City conducted a formal bid to obtain Employee Health Insurance Plan services for Calendar Year
2014. The contract was awarded to AvMed, with a 1.5% rate increase for HMO Plan Coverage and 8.5% rate
increase for POS Plan coverage, with the option to renew annually, as agreeable by both parties.
Calendar Year 2015
When the City’s Group Health Insurance coverage expired on December 31, 2014, AvMed initially proposed a
4.5% overall cost increase to renew the City’s Group Employee Health Insurance for Calendar Year 2015. In an
effort to reduce renewal cost for employee health insurance for Calendar Year 2015 staff explored the viability of
modifying the insurance plan design to realize cost savings. As a result, staff identified a plan modification which
reduced the current overall cost by 2.9%, a 7.4% savings compared to the initial proposal. Accordingly, the HMO
Plan Coverage and the POS Plan coverage were renewed.
AGENDA ITEM K-11
AVMED RENEWAL
18605 NW 27 Avenue
Miami Gardens, Florida 33056
Calendar Year 2016
In an effort to reduce renewal cost for employee health insurance for Calendar Year 2016 staff explored the
viability of modifying the insurance plan design to realize cost savings. As a result, staff identified a plan
modification which reduced the overall cost by 5%.
Calendar Year 2017
The City’s Group Health Insurance coverage expired December 31, 2016. AvMed proposed a 3.1% rate increase to
our current 2016 in-force rates and current benefits to renew the City’s Group Employee Health Insurance for
Calendar Year 2017. After staff negotiations AvMed agreed to a 5% rate concession from our current 2016 in-
force rates. Resulting in an 8.1% savings compared to the initial proposal. This concession equated to
approximately a $332,000 annual savings to the City from the 2017 renewal increase.
Current Situation:
The City’s Group Health Insurance coverage expires December 31, 2017. AvMed proposed a 40% rate increase to
our current 2017 in-force rates and current benefits to renew the City’s Group Employee Health Insurance for
Calendar Year 2018. After staff negotiations AvMed agreed to a 0% increase from our current 2017 in-force rates.
Resulting in a 40% savings compared to the initial proposal with no change to premiums or benefits.
Analysis
Of the 410 employees and retirees currently enrolled under the City’s Group Health Insurance Plans – HMO, POS
and POS Choice combined; 96% (393) are covered under the HMO Plan, 4% (17) are covered under the POS Plan,
and 0% (0) is covered under the POS Choice Plan.
The City currently contributes 100% of the cost of the employee premium for the HMO Plan and a portion of the
cost of the employee premium for HMO dependent coverage.
The table below provides an analysis of the AvMed proposal to renew the City’s Group Employee Health Insurance
Coverage for Calendar Year 2018.
HMO Current Cost Proposal % Increase % Savings
Employee
Only $467.36 $467.36 0% 0%
Employee and
Spouse $887.98 $887.98 0% 0%
Employee
plus Family $1,261.82 $1,261.82 -0% 0%
POS Current Cost Proposal % Increase % Savings
Employee
Only $597.02 $597.02 0% 0%
Employee and
Spouse $1,134.33 $1,134.33 0% 0%
Employee
plus Family $1,611.89 $1,611.89 0% 0%
POS CHOICE Current Cost Proposal % Increase % Savings
Employee $581.71 $581.71 0% 0%
18605 NW 27 Avenue
Miami Gardens, Florida 33056
Only
Employee and
Spouse $1,105.25 $1,105.25 0% 0%
Employee
plus Family $1,570.57 $1,570.57
0% 0%
Proposed Action:
For the City Council to renew AvMed as the City’s carrier for Group Employee Health Insurance for Calendar Year
2018 with no increase to premium.
Attachment:
Attachment A – 2018 Benefits Proposal