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HomeMy WebLinkAbout11. 18-496 SEPTEMBER 25, 2018 18-496 RESOLUTION (CARRIED 6-0 LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE EMPLOYEE HEALTH INSURANCE AGREEMENT WITH ANTHEM BLUECROSS BLUESHIELD AND DENTAL INSURANCE AGREEMENT WITH DELTA DENTAL OF WISCONSIN INITIATED BY: ADMINISTRATIVE SERVICES WHEREAS, the City of Oshkosh requested proposals for Employee Health Insurance for 2019; and WHEREAS, the proposal submitted by Anthem B1ueCross B1ueShield meets the requirements of the request for proposals, will allow the City of Oshkosh to experience no cost increases from the current City plan, and provide the least disruption to our employee population provider relationships; and WHEREAS, Delta Dental of Wisconsin offers the most advantageous Dental plan to meet the City's requirements. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the proper City officials are hereby authorized to enter into and take those steps necessary to implement an appropriate agreement with Anthem B1ueCross B1ueShield for participation in the Anthem B1ueCross B1ueShield health benefit plan in substantially the same form as the existing agreement, any changes in the execution copy being deemed approved by their signatures. BE IT FURTHER RESOLVED that the proper City officials are hereby authorized to enter into and take those steps necessary to implement an appropriate agreement with Delta Dental of Wisconsin for participation in the Delta Dental of Wisconsin dental plan in substantially the same form as the existing agreement and endorsements, any changes in the execution copy being deemed approved by their signatures. SEPTEMBER 25, 2018 18-496 RESOLUTION CONT'D BE IT FURTHER RESOLVED that the funding for these purposes are hereby appropriated from: Acct. No. XXX-XXXX-6306-XXXXX Health Insurance XXX-XXXX-6308-XXXXX Dental Insurance ��� %��Y - �„30 -. '� �� 5 Oshkosh TO: Honorable Mayor and Members of the Common Council FROM: John Fitzpatrick, Assistant City Manager/Director of Administrative Services DATE: September 20, 2018 RE: Employee Health and Dental Insurance Agreements BACKGROUND As Council is aware, through your direction and as a matter of good practice, the City regularly reviews our contract agreements and benefit structures in order to provide the best benefits possible for our staff at the most cost effective level possible for our taxpayers. With these thoughts in mind, and in consideration of the expiration of our agreements with Anthem B1ueCross B1ueShield and Delta Dental of Wisconsin at the end of 2018, city staff and Associated Benefits Risk and Consulting (ABRC) have been taking the appropriate steps to establish relationships with providers for health and dental benefits for 2019. ANALYSIS After evaluating current medical plan costs the decision was made to conduct a comprehensive request for proposals (RFP). The best option illustrated by the RFP and corresponding analysis was a no cost increase, available through renewal with Anthem B1ueCross B1ueShield. In addition to reducing the projected budget increase for health insurance we discussed with Council at Budget Workshop #1 from a 2.5% increase to a 0% increase, the Anthem B1ueCross B1ueShield option also includes value added services intended to defray our costs for Three Waves Health Clinic & Wellness Center, our health risk assessments, and our employee assistance program. This renewal option is also the least disruptive to our employees when considering the providers they currently have established relationships with. The dental plan was also assessed and the vendor with the most effective plan for the City continues to be our current provider, Delta Dental of Wisconsin. The projected increase for dental services in 2019 is 0%. Anthem and Delta agreements/applications are for 2019 only. FISCAL IMPACT Staff is estimating no cost increases for our combined health / dental programs in 2019. Although the city employee focus group on health insurance, staff and City Manager Rohloff are pleased with the outcome of this year's process, all parties understand that it will be necessary to evaluate our plan in 2019 due to the one year agreement in order to consider what changes may be necessary in order to preserve the best benefits possible for our staff at the most cost effective level possible for our taxpayers moving forward. RECOMMENDATION Based on the analysis conducted, staff recommends approval of the aforementioned employee health and dental insurance agreements with Anthem B1ueCross B1ueShield and Delta Dental of Wisconsin. Please let me know if you have any questions regarding this matter and thank you as always for your assistance and support. Respectfully Submitted, John M. Fitzpatrick Assistant City Manager / Director of Administrative Services Approved: Mark A. Rohloff City Manager Attachments: Health Insurance RFP Summary Associated Benefits and Risk Consulting Confirmation Email cc: Michelle Behnke, HR Manager 2 City of Oshkosh HEALTH COVERAGE ALTERNATIVES Am. Am ;. ob Provider Network Well Prion3 POS Well Pnorit3-POS WVN WV'N WI NationalONE Focused Wl NationaIONE Focused Deductible PLAN I NARROW PLAN 2 NARROW PLAN I NARROW PLAN 2 NARROW PLAN 1 NARROW PLAN 2 NARROW In-Nct,"rk (Sing"/Family) so/so 5500 / $1,000 SO / $0 $500 / $1,000 $0/$0 $500 / $1,000 Out -of -Network (Sin le / Family) $600 / $1.200 $1,000 / $2,000 N/A N/A $600 / $1,200 $1,000 / $2,000 Coinsurance In -Network N/A 80% 100% 80% 100% 80% Out -of -Network 80% 60% N/A N/A 80% 60% Out-.fPocket Max Includes Deductible Includes Deductible Includes Deductible Includes Deductible Includes Deductible Includes Deductible In-Nebvork (Single / Family) $4,000 / $8,000 $3,000 / $6,000 $4,000 / $8,000 $3,000 / $6,000 $4,000 / $8,000 $3,000 / $6,000 Out -of -Network (Single / Family) $8,000 / SI6,000 56,000 / $12,000 N/A N/A $8,000 / $16,000 $6,000 / $12,000 Office Visits In-Netvork $20 Copay Ded, 80% Coins $20 Copay Ded, 80% Coins $20 Copay Ded, 80% Coins Out -of -Network Ded, 80% Coins Ded, 60% Coins N/A N/A Ded, 80% Coins Ded, 60% Coins Specialist In -Network $20 Copay Ded, 80% Coins $20 Copay Ded, 80% Coins $20 Copay Ded, 80% Coins Outof-Network Ded, 90% Coins Ded, 60% Coins N/A N/A Ded 80% Coins Ded 60% Coins Routine/Preventive Care In-Netvork 100% Coverage 100% Coverage 100% Coverage 100% Coverage 100% Coverage 100% Coverage Out -of -Network Ded, 80% Coins Ded, 60% Coins N/A N/A Ded, 80% Coins Ded 60% Coins Inpatient Hospital Services In -Network $300 Copay (Facility) Ded, 80% Coins $300 Copay Ded, 80% Coins $300 Copay Ded, 90% Coins $150 Copay (Physician) Outof-Network Ded, 80% Coins Ded, 60% Coins N/A N/A Ded, 80% Coins Ded, 60% Coins Outpatient Hospital Services In -Network $150 Copay Ded, 80% Coins $500 Copay Ded, 80% Coins $150 Copay Ded, 80% Coins Outof-Network Ded, 80% Coins Ded, 60% Coins N/A N/A Ded, 80% Coins Ded, 60% Coins Emergency Room In -Network $100 Copay $150 Copay, 80% Coins $250 Copay $150 Copay $100 Copay $150 Copay Outof-Netvork $100 Copay $150 Copay, 80% Coins $250 Copay $150 Copay $100 Copay $150 Co a Prescription Drugs -In-Network Rr MOOP$2,350/S4,700 Rx MOOPS4,I50/58,300 Rx MOOP52,350/$4,700 Rx MOOP $4,150 / $8,300 Rx MOOP $2,350 / $4,700 Rx MOOP $4,150 / $8,300 Tier I / Tier 2 / Tier 3 $5/$30/$60 $10 / $30 / $60 $5/$30/$60 $10 / $30 / $60 $5/$30/$60 $10 / $30 / $60 Mail Order Prescription Drugs Tier !/ Tier 2/Tier 3 $10/$60/$120 $20/$60/$120 $12.50/$75/$150 $25/$75/$150 $10/$60/$120 $20/$60/$120 Rates Plan 1 Plan 3 Total Current Renewal Current Renewal Option 1 Option 1 Option 2 Option 2 Employee 5 131 136 $777.73 $777.73 $705.72 $705.72 $803.08 $732.31 $797.72 $699.16 Employee/Spouse 7 114 121 $1,555.46 $1,555.46 $1,411.43 $1,411.43 $1,606.16 $1,464.62 $1,595.44 $1,398.32 Employee/Child(ren) 0 0 0 $1,555.46 $1,555.46 $1,411.43 $1,411.43 $1,606.16 $1,464.62 $1,595.44 $1,398.32 Family 9 231 240 $1,944.84 $1,944.84 $1,764.76 $1,764.76 52,008.23 $1,831.26 $1,994.83 $1,748.37 Monthly Totals S32280.43 S32280.43 I S661.011-90 $661,011.90 S33,332.59 $685,920.35 S33,110.15 $654,871.91 Annual Totals $387,365.16 $387,365.16 1 $7,932,142.80 $7,932,142.80 $399,99108 $8,231,044.20 $397321.80 $7,858,462.92 Combined Plan Totals $8,319,507.96 $8,319,507.96 $8,631,035.28 $8,255,784.72 Annual % of Increase/Decrease 0.00% 3.7% -0.8% Annual Dollar Increase/Decrease $0.00 $311,527.32 ($63,723.24) Value Added Services Clinic $200,000.00 $0.00 $0.00 Wellness (HRA) $20,000.00 $0.00 $0.00 nanra �.a.e: naam ra anenag a pan year ram rap m a -.o Not Competitive: W CA, WPS, WEA and Network Health Plan NOTE: Company logos are for information purposes only. Agents are independent and are not affiliated with the company. Our standard of can, and legal dun to the insured m p uvidbg tmura- products and services is to follow• the butn,ctiom fthe inured in good faid. This constitutes only a summary of the Health plan involved. The actual contract or plan doeument must be consulted to determine the goweming contractual provisions, limitations, or exclusions. There is no g arantm, expressed or implied by Associated Benefits and Risk Consulting or vendors of plan provisions or level of payments. amro o.r .mtan.„;.,,e-a- It. ratna --aa -as ca.m .. -y..Fc. Joeckel, Angela J. From: Hitner, Lana <Lana.Hitner@associatedbrc.com> Sent: Thursday, September 20, 2018 9:26 AM To: Fitzpatrick, John Cc: Kautza, Kim; Behnke, Michelle; Stage, Jan Subject: RE: City of Oshkosh - Medical & Dental Renewals Hi John, Yes, I will forward the documents once I receive them. Thanks, Lana From: Fitzpatrick, John [mailto:JFitzpatrick@ci.oshkosh.wi.us] Sent: September 20, 2018 09:25 AM To: Hitner, Lana Cc: Kautza, Kim; Behnke, Michelle; Stage, Jan Subject: RE: City of Oshkosh - Medical & Dental Renewals ASSOCIATED BANK SECURITY NOTICE: External email. Please make sure you trust the sender before responding, clicking links or opening attachments. if you suspect the legitimacy of ANY email, forward it immediately to the Cyber Defense Center. Thank you Lana. As we discussed, I assume you will also forward the appropriate documents to Michelle for approval by the City when you receive them from the vendors, is that correct? Thanks. J� John. Fitzpatrick Assistant City Manager / Director of Administrative Services City of Oshkosh 920.236.5002 Follow us: Web I Facebook I Twitter ^Cit f �Oshkosh From: Hitner, Lana [mailto:Lana.Hitner@associatedbrc.com] Sent: Thursday, September 20, 2018 9:17 AM To: Fitzpatrick, John <JFitzpatrick@ci.oshkosh.wi.us> Cc: Kautza, Kim <KKautza@ci.oshkosh.wi.us>; Behnke, Michelle <MBehnke@ci.oshkosh.wi.us>; Stage, Jan <Jan.Stage@associatedbrc.com> Subject: City of Oshkosh - Medical & Dental Renewals Hi John, This email is to confirm that the Anthem medical plan will be renewing effective January 1, 2019 with no increase to the rates. In addition, the Delta Dental dental plan will be renewing effective January 1, 2019 with no increase to the rates. Thanks, Associates! B#nef€ts and Risk Consulting Lana A. Hitner, HIA, GBA Account Executive I Associated Benefits and Risk Consulting Certified WELCOA Well Workplace Practitioner Office: 920-731-0400 711 Eisenhower Drive I Kimberly, WI 54136 Iana.hitner@associatedbrc.com *********************** NOTICE*********************** This e-mail and attachment(s) may contain information that is privileged, confidential, and/or exempt from disclosure under applicable law. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this message is strictly prohibited. If received in error, please notify the sender immediately and delete/destroy the message and any copies thereof. Although Associated Banc -Corp and/or its affiliates (collectively "Associated") attempt to prevent the passage of viruses via e-mail and attachments thereto, Associated does not guarantee that either are virus -free, and accepts no liability for any damage sustained as a result of any such viruses. 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