CC Minutes 02/25/2008 - Laserfiche WebLink

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City Commission Meeting February 25,2008 Page 3 Company as Trustee.'; providing for the execution of the Declaration of Trust; providing for the Program Coordinator; providing for conflicts; severability and effective date." C. Health Insurance Renewal for City Employees (Removed from Consent at the request of the City manager. Item will be considered under separate motion)) D. Ratification of City Manager's Appointment to the Civil Service Board - The City Manager appointed Karen Almond, 792 N. Triplet Lake Drive, Casselberry, Florida, to the Civil Service Board; term effective to January 2010. MOTION: Moved by Commissioner Susan Doeruer to approve the Consent Agenda as amended with Item C to be considered by separate motion. Motion was seconded by Commissioner Sandra T. Solomon and carried unanimously on 4 - 0 voice vote. Item C - Health Insurance Renewal for City Employees (Removed/rom the COllsellt Agellda) Staff Presentation bv Randv Newlon, Finance Director: The City employees' The HMO health insurance coverage is due for renewal April I, 2008. The City uses Aon Consulting to negotiate insurance rates with potential carriers. The City's current health carrier, Cigna submitted a proposal that was negotiated by Aon with a 17% rate increase with no changes to the plan. The plan has two options, an HMO and a new HRA (Health Reimbursement Account), which replaces the POS (Point of Service). The HMO Plan has a $500 deductible for single employees and $1,000 for family coverage; out of pocket maximums are $1,500 for single employees and $3,000 for family. Co-pays are not limited by the out of pocket maximums. The HRA Plan includes a new feature which is a City funded account in the amount of$500 for an employee and $1,000 for family. The employee can utilize this account toward meeting the deductable. The HRA has a deductible of $1,000 for single employees and $2,000 for families. If an employee does not spend the full HRA allowance it will roll forward each year and grow for the employee's benefit. City contributions to the HRA remain with the City if the employee leaves employment. The estimated total cost to the City for the period April 1, 2008 through March 31, 2009 will be $1,346,551, which includes an increase of $14. If there is greater participation in the HRA, the City's contribution will be higher and the City may have to spend additional budgeted funds. Staff Recommendation: Approve the negotiated renewal with Cigna as negotiated by Aon Consulting. MOTION: Moved by Commissioner Jon Miller to approve the Health Insurance Renewal as presented. Motion was seconded by Commissioner Sandra T. Solomon and carried unanimously on a 4 - 0 voice vote.