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HomeMy WebLinkAbout9.b. Employee Benefits: Health, Dental & Long Term Disability InsuranceCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: DECEMBER 7, 1993 AGENDA ITEM: EMPLOYEE MEDICAL, DENTAL AND AGENDA SECTION: LONG TERM DISABILITY INSURANCE PROGRAMS OLD BUSINESS PREPARED BY: SUSAN WALSH AGENDA f ADMINISTRATIVE ASSISTANT ATTACHMENTS: PROPOSAL RESPONSE SUMMARY APP VED B : AND ANALYSIS, MEMORANDUM On October 29, the city received sealed proposals for dental, medical and long term disability benefits. Attached for your review is a summary and analysis prepared by the city's consultant, Jeff Azen, of James Bissonnet & Associates. Mr. Azen has included in the attached booklet an executive summary on pages i and ii, which provides you a brief but good outline of the responses received and the recommendations of the Employee Benefit Committee and of Mr. Azen. Mr. Azen will be at the Council meeting to answer any questions. Also attached for your review is a memorandum which details the monthly and yearly costs for the city and employees by going with the recommendations of the Employee Benefits Committee. The recommendations are as follows: (1) Contract with Blue Cross Blue Shield but only have the Aware Gold Limited with Copay Plan and eliminate the 1st Dollar Plan; (2) Contract with Canada Life rather than Delta Dental for employee dental insurance; (3) Contract with Fortis Benefits for long term disability insurance with employees paying 100% of the cost and participating on a voluntary basis. In my memorandum I point out that if the City only offered the Aware Gold Limited plan in 1994, it would cost the City an additional $4520 a year than if the city offered the 1st Dollar Plan and the Aware Gold Plan. This difference in cost is because in the past the least expensive single coverage was offered to employees and the 65% family coverage cost was based on the most expensive family plan. I would like to note that in comparison to 1993 cost, there is only an $8 total increase per year for all employees. Therefore, by dropping the 1st Dollar Plan, there is virtually no increase in cost to the city from 1993 to 1994. Additionally, by going with Canada Life for dental insurance, the city will save approximately $4983 a year. RECOMMENDED ACTION: MOTION TO AWARD THE MEDICAL INSURANCE BID TO BLUE CROSS BLUE SHIELD, AWARE GOLD LIMITED PLAN WITH COPAYS, AWARD THE DENTAL INSURANCE BID TO CANADA LIFE, PLAN #2, AND AWARD THE LONG TERM DISABILITY INSURANCE BID TO FORTIS BENEFITS BASED UPON AN EMPLOYEE PAID VOLUNTARY PARTICIPATION PROGRAM. COUNCIL ACTION: CITY OF ROSEMOUNT M E M O R A N D U M TO: Mayor McMenomy Councilmembers Willcox, Wippermann, Staats, Klassen FROM: Susan Walsh, Administrative Assistant N DATE: December 3, 1993 SUBJ: Employee Insurance Programs This memorandum will address the recommendations to the City Council for employee medical, dental and long term disability insurance and the costs to the city and employees. MEDICAL INSURANCE: The recommendation is to award the bid to Blue Cross Blue Shield but only have the Aware Gold Limited Plan with Copays and drop the 1st Dollar Plan. The city's benefit consultant, Mr. Azen, feels the city will get better renewal rates if we only have one plan. I have listed below a cost comparison which illustrates the additional cost to the city if we only have the Aware Gold Limited plan. (1) If city retained both medical plans, the cost breakdown is as follows: City cost for single coverage: $119.54 x 27 employees = $3227.58 City cost for family coverage: $301.63 x 27 employees = $8144.01 Total monthly cost for City: $11371.59 Employee cost for 1st Dollar Plan single coverage: -0- Employee cost for Aware Gold single coverage: 10.33 Employee cost for 1st Dollar family coverage: 66.55 Employee cost for Aware Gold family coverage: 98.05 (2) If city only had the Aware Gold Plan, the cost breakdown is as follows: City cost for single coverage: $129.87 x 27 employees = $3506.49 City cost for family coverage: $305.25 x 27 employees = $8241.75 Total monthly cost for City: $11748.24 Employee cost for Aware Gold single coverage: -0- rA Employee cost for Aware Gold family coverage: 94.43 (3) Based on our current enrollment of 27 single coverage plans and 27 family coverage plans, the city would have an additional expense of $376.65 a month or $4520 a year if the city only offers the Aware Gold Plan. Employees would not pay any additional cost for the Aware Gold single coverage plan. Employees would pay $3.62 less a month for Aware Gold family coverage. DENTAL INSURANCE: The recommendation is to award the bid to Canada Life and no longer contract with Delta Dental. There is a reduction in cost to the city for employee coverage and to -the employee for family coverage as follows: (1) Based on enrollment of 54 employees in the dental plan for single coverage the costs are as follows: Delta Dental: $22.70 x 54 employees = $1225.80 Canada Life: $15.01 x 54 employees = $ 810.54 Total monthly savings to city: $ 415.26 ($4983 a year) (2) Delta Dental Employee Cost for family coverage: $35.80 Canada Life Employee Cost for family coverage: $33.74 LONG TERM DISABILITY INSURANCE: This will be a new plan for employees but will be paid by the employee. There will be no cost to the employee except for staff time to administer the plan. 1 REQUEST FOR 1994 PROPOSAL RESPONSE SUMMARY AND ANALYSIS ' (MEDICAL, DENTAL, AND LTD BENEFITS) Prepared for CITY OF ROSEMOUNT November, 1993 JAMES BISSONETT & ASSOCIATES EMPLOYEE BENEFIT CONSULTING ' 7901 FLYING CLOUD DRIVE, SUITE 154 EDEN PRAIRIE, MINNESOTA 55344-5384 OFFICE: (612) 944-7117 FAX: (612) 944-7056 1 1 n n 1 11 r_ CONTENTS 1 1 1 EXECUTIVE SUMMARY I. GENERAL INFORMATION 1 - 4 ' II. RFP MEDICAL BENEFIT & RATE ANALYSIS 5 - 9 III. RFP DENTAL BENEFIT & RATE ANALYSIS 10-12 ' IV. RFP LTD BENEFIT & RATE ANALYSIS 13-14 V. PROVIDER SURVEY 15-16 ' VI. ADDENDUMS A. EMPLOYER/EMPLOYEE CONTRIBUTION ANALYSIS Al - A10 ' (TOTAL CARRIER REPLACEMENT) t F1 1 1 L L 1 ' CITY OF ROSEMOUNT - EXECUTIVE SUMMARY - ' This Executive Summary and the attached "Request for 1994 Proposal Response Summary and Analysis" was prepared by the City's Benefit Consultant Jeffrey A. Azen of James Bissonett & Associates, Inc. The Executive Summary is based on the meeting held Wednesday, November 10, 1993 with the Employee Insurance Committee. 1 BACKGROUND INFORMATION: ' The City currently offers eligible employees a choice between two Blue Cross/Blue Shield (BC/BS) Plans; Base Plus Major Medical and Aware Gold Limited with Copays. Dental Benefits are insured through Delta Dental of Minnesota. The City currently does not offer Long Term I Disability Benefits to its employees. REQUEST FOR PROPOSAL (RFP) RESPONSES: RFD's were sent to forty-six (46) Insurance Companies and/or Health Maintenance Organizations. Based on the bid specifications, multiple plan design proposals for Medical, Dental, and Long Term Disability Benefits, were received from twelve (12) Insurance Companies and/or HMO's. The RFP Response Summary and Analysis compares proposal responses on the basis of benefit design, total plan costs, employer and employee contributions, retention costs, medical inflation trend projections and renewal rate guarantees. The Insurance Committee also reviewed the results of the Employee Provider Survey. I. The most competitive proposals for Medical Benefits were received from Blue Cross/Blue Shield (Preferred Gold Plan), Prudential, Medica and HealthPartners (Group Health & ' MedCenters). These Medical Proposals provided premium savings by reducing access to Providers. Projected annual medical premium savings ranged from approximately $3,000 (-2%) to 25,000 (-15%). II. Dental Proposals were received from three (3) Insurance Companies. Projected annual dental premium savings ranged from approximately $1,500 (-7%) to $3,500 (-16%). The ' highest levels of savings were available only by reducing access to Dental Providers through Dental Maintenance Organizations and/or Preferred Provider Organizations. However, ' lower levels of savings were available just by changing Carriers. III. Proposals for a Employee Paid (Voluntary) Long Term Disability Plan were received from six (6) Insurance Companies. In order to have this Plan, a minimum of 75% of eligible employees will have to participate. 1 Irosemount/execsum.doc n i F1 I I IBENEFIT COMMITTEE RECOMMENDATIONS: tL Medical Benefits: ' Since BC/BS did not increase rates for 1994, and since premium savings can only be generated by limiting access to Providers, the Benefit Committee recommends that the City Council award the Medical Bid to BC/BS. However, the Benefit Committee recommends ' that only the Aware Gold Limited with Copays Plan be maintained. This recommendation is based on the recommendation of Jeffrey A. Azen, the City's Benefit Consultant. Having only one plan will make it easier for the City to get fairer renewals by eliminating the "rate ' gaming" that has occurred in the past between the two plans. One plan will also be easier to administrate. t R. Dental Benefits: .T ' Change Dental Carriers to Canada Life with enhanced new benefits for child(ren) orthodontics. Even with the enhanced benefits, premiums will be reduced approximately ' 11%. To retain the current plan without Orthodontic Benefits with Delta Dental would have resulted in an increase in premiums of almost 14%. IIII. Long Term Disability Benefits: ' Award the Bid to Fortis Benefits conditional to satisfactory enrollment (75% minimum participation). I rosemounUexecsum.doc it l 1 ' GENERAL INFORMATION On October 07, 1993, the City of Rosemount provided formal (published) notice of its ' Request for Proposals (RFP's) for Medical/HMO, Dental, and LTD Benefits. The City required that sealed proposals be received no later than 3:00 p.m., October 29, 1993. On behalf of the City, James Bissonett and Associates, Inc., the City's consultant and ' agent -of -record, mailed RFP's to forty-six (46) Insurance Companies and/or Health Maintenance Organizations. RFP responses were received from twelve (12) Insurance Companies and/or HMO's. All twelve (12) RFP proposals were received within the ' required period. Jeffrey A. Azen of James Bissonett & Associates, Inc., has condensed the RFP responses and prepared the following Cost and Benefit Analysis. The City has retained for its ' inspection and review the original RFP Response Proposals. Irosemount/pninfo.doc 1 THE CITY OF ROSEMOUNT Responses to the Request for Proposal for 1994 Employee Benefit Proposals AETNA Received Declined No Response ✓ Blue Cross Blue Shield of Minnesota Received O9 Declined No Response Benefit.Trust Received Declined No Response Canada Life Received Z 9 Declined No Response CIGNA Received Declined No Response CNA Received Declined No Response Confederation Life Received Declined No Response Delta Dental Received 2S 93 Declined No Response Employers Health Insurance Company Received l -9 / Declined No Response Forltis Benefits Received 2g Declined No Response General American Life Insurance Co. Received Declined /0/13 93 No Response Great West Life/Annuity Insurance Co. Received Declined 10129' 3 No Response Group America Insurance Company .Received Declined No Response Guarantee Mutual . = ' Received Declined No Response Healtheast Care, Inc. Received Declined No Response v HealthPartners Received 2 9J Declined No Response IDS Received Declined No Response ITT Hartford Received Declined 29 13 No Response Kansas City Life Received Declined No Response LeSavage, R.J. Dick Received Declined No Response LOGIS Received Declined No Response Maccabbees Mutual Received Declined No Response Goe MassMutual Life Insurance Co. Received Declined ZS S,3 No Response 1 Medica Received_y?-?- 93 Declined No Response Metropolitan Life Insurance Co. Received Declined f O f 3 No Response MN Mutual Life Received Declined No Response 2 rosemount\rfpresp. doc MSI Insurance ' Mutual of Omaha National Schools Fund New England Life New York Life Insurance Company North American Life Insurance Northwestern National Life Paul Revere Insurance Group ' Phoenix Home Life ' Provident Life & Accident 1 Prudential Public Employees Insurance Plan (PEIP) Reliance Standard Life Insurance Co. Security Life Standard Insurance Company State Mutual Life Assurance Sun Life of Canada The Travelers Insurance UNUM Wausau Insurance Company Others ' Signatures: Rep esentative of City Consul ap rosesemount\rfpresp. doc Received Declined No Response Received Declined No Response %ofDeclined No Response Declined Received /0 L9 No Response Received Declined (q 3 No Response Received Declined No Response Received Declined No Response Received Declined p,? No Response Received Declined No Response Received Declined 2L 3 No Response Received Declined t6l 2'Z g.? No Response Received Lt/ ?9 3 Declined No Response Received Declined No Response Received d Z9 93 Declined No Response Received /U Declined No Response Received Declined No Response l Received Declined 41 t(113 No Response Received Declined No Response Received Declined No Response Received �b L9 `�3 Declined No Response Received Declined No Response Received Received Received Received Received 3 Declined No Response Declined No Response Declined No Response Declined No Response Declined No Response Date /a L2 9,jl,3 Date DATA BASE* ENROLLMENT COUNTS MEDICAL BENEFITS OR VOLUME Aware Gold Limited w/Copays Single Enrollees 13 Family Enrollees 26 First Dollar Plan Single Enrollees 14 Family Enrollees 1 Total 54 DENTAL BENEFITS Single Enrollees 28 Family Enrollees 24 Total 52 LONGTERM DISABILITY BENEFITS Covered Monthly Payroll @ 100% Participation $155,983 @ 90% Participation $140,385 @ 75% Participation $116,987 *Based on current enrollment information provided by the City of Rosemount September 1993 rosemount/dbase92.xis 11/8/93 4 = = = = = = M = = = = = = = = = = M = 0�; ............. M too g'i ........... ... ... . ...... Prudential Total Carrier Replacement Point- # of Physicians # of Clinics (A) of -Service Proposals with Out -of- 1st Year: 25.7% Network Benefits. Proposals are Prudential Plus. 2nd Year: N/A based on a Primary Care Primary Care 867 171 (Gatekeeper) Managed Care Ob/Gyn 132 64 3rd Year: N/A System. Pediatricians 147 59 4th Year: N/A Urgent Care N/A 18 5th Year: N/A Specialists 1,609 179 Hospitals N/A 27 (Hosp.) (B) 1994: 9% 1995: N/A (C) 1995: N/A 1996: N/A Blue Cross Blue Shield Total Carrier Replacement Point- # of Physicians # of Clinics (A) of -Service Proposals with Out -of- 1st Year: 26.1% Network Benefits. In addition to Blue Plus. 2nd Year: N/A the current plans, BCBS offered Primary Care 661 N/A 3rd Year: N/A the Blue Plus Network which is a Ob/Gyn 49 N/A 4th Year: N/A Primary Care (Gatekeeper) Pediatricians 140 N/A 5th Year: N/A Managed Care System. Additional Urgent Care N/A N/A rate reductions are available on the Specialists 116 N/A (B) above noted plans if the City will Hospitals N/A 25 (Hosp.) 1994: N/A participate in the ECSU Risk Pool. 1995: N/A NOTE.- All ECSU (Medical) Plans renew October 01 of each year. (C) 1995: N/A 1996: N/A rosemount\rfpbid s. doc M rosemount\rfpbids. doc M M M M M M M M M M M M M M M M M M M ............ W................... ............ .OMP nc..t ................ ............... ............... ................. ............... K", .......... ..... ......nn...... ......... ...... ....... . .... ........... ..... .............. ................................ HealthPartners Total Carrier Replacement Point- # of Physicians # of Clinics (A) of -Service Proposals with the 1st Year: 24.6% combined MedCenters and Group Combined Network. 206 2nd Year: N/A Health Networks and Out -of- Primary Care 800 N/A 3rd Year: N/A Network Benefits. HealthPartners Ob/Gyn 181 N/A 4th Year: N/A Choice Plan provides basically Pediatricians 215 N/A 5th Year: N/A 100% coverage for Physician Urgent Care 18 Office Visits and inpatient hospital Specialists 486 N/A (B) expenses (except inpatient hospital Hospitals N/A 25 (Hosp.) 1994: 10% mental health/chemical 1995: N/A dependency at 80-201%). HealthPartners second plan adds (C) 90-10% of first $1000 for all other 1995: N/A inpatient hospital expenses. 1996: N/A Medica Total Carrier Replacement Point- # of Physicians # of Clinics (A) of -Service Proposals with Out -of- 1st Year: 8.9% Network Benefits. In addition to Choice Network. 2nd Year: 8.9% Medica's Point -of -Service "Choice" Primary Care 725 N/A 3rd Year: 8.9% Network, Medica also offered its Ob/Gyn 263 N/A 4th Year: 8.9% "Premier" Network. The "Premier" Pediatricians 428 N/A 5th Year: 8.9% Network includes a Primary Care Urgent Care 21 N/A (Gatekeeper) Network in addition Specialists 1856 N/A (B) to the "Choice" Network. Self- Hospitals N/A 19 (Hosp.) 1994: 9% referral to the "Choice" Network 1995: N/A results in increased copays. Premier Network. - Primary Care 424 185 (C) Ob/Gyn 263 NIA 1995: 90/0 Pediatricians 165 41 1996: N/A Urgent Care 21 N/A Specialists 1856 N/A Hospitals N/A 19 (Hosp.) rosemount\rfpbids. doc M M M M M M M M M M M M M M M M M M M IR:rr .. W ..................... .....•... . . . . . . . . . . . . . . . . . . . . A . 0480. d:L . ...... "NOW" :1 Ox .............. ........... .............................. illAy. ij-X . .......... .......... U.N. W.R.'" See BCBS Blue Plus and Medica Premier for Network Information Public Employees POP operates as a Managed # of Physicians # of Clinics (A) Insurance Plan Competition Plan allowing each 1st Year: N/A employee the option of. BCBSs PreferredOne. 2nd Year: N/A Blue Plus, Medica's Premier and Primary Care 637 80 3rd Year: N/A Fortis/PreferredOne. A two year Ob/Gyn 211 71 4th Year: N/A commitment is required. Pediatricians 259 71 5th Year: N/A Urgent Care 13 Specialists 1316 650 (B) Hospithls 14 (Hosp.) 1994: N/A 1995: N/A (C) 1995: N/A 1996: N/A rosemounArfpbids.doc MEDICAL RFP RATE/PREMIUM COMPARISON (TWO-TIER RATE STRUCTURE) Aware Gold $129.87 $399.68 $144,959.88 N/A N/A First Dollar $119.54 $420.69 $25,131.00 N/A N/A Total $170,090.88 N/A N/A Aware Gold $131.76 1 $395.27 $143,878.80 ($1,081.08) -0.75% First Dollar $121.06 $363.17 $24,696.12 ($434.88) -1.73% Total 1 $168,574.92 ($1,515.96) -2.48% Aware Gold $129.87 $399.68 $144,959.88 $0.00 0.00% First Dollar $119.54 $368.18 $24,500.88 ($630.12) -2.51 % Total$169,460.76 ($630.12) -2.51% .....................:..... . Aware Gold $125.39 $385.90 $139,961.64 ($4,998.24) -3.45% First Dollar $115.42 $355.49 $23,656.44 ($1,474.56) -5.87% Total t $163,618.08 ($6,472.80) -9.32% Preferred Gold 1 $109.61 1 $337.33 1 $144,808.56 1 ($25,282.32) 1 -14.86% linnovation 1 $118.58 1 $355.75 ( $153,682.92 1 ($16,407.96) 1 -9.65% Plan: #371 $129.50 $387.40 $167,475.60 ($2,615.28) -1.54% #378 $120.90 $359.60 $155,682.00 ($14,408.88) -8.47% #303 $116.00 $347.50 $150,174.00 ($19,916.88) -11.71% l Choice 1 $115.50 $348.00 $150,174.00 ($19,916.88) -11.710 Choice w/Hosp. Copays 1 $114.00 $344.00 $148,392.00 ($21,698.88) -12.76% rosemou nt/rfpcomp.exl 8 11/9/93 u REQUEST FOR PROPOSAL COST ANALYSIS (TOTAL CARRIER REPLACEMENT) AL PLAN COSTS BCBS 1993 AG $129.89 $399.88 $119.54 $315.29 10.33 $84.39 1993 1ST$ $119.54 $420.89 $119.54 $315.29 0 $105.40 TOTAL $170,095 N/A ~ $140,890 N/A $29,208 N/A BCBS RFP AG $129.87 $399.88 $119.54 $301.83 10.33 1 $98.05 1ST$ $119.54 $388.18 $119.54 $301.83 0 $88.55 $189,481 -.37% $138,459 -3.15% $33,002 13.00% BCBS PREFGOLD $109.81 $337.33 $144,809 -14.87% 1 $109.81 $257.83 $118,988 -15.55% 0 $79.70 $25,823 -11.58% PRUDENTIAL $118.58 $355.75 $153,883 -9.85% $118.58 $272.74 $128,788 -10.01% 0 $83.01 $28,895 -7.91% MEDICA #371 $129.50 $387.40 $187,478 -1.54% $129.50 $297.14 $138,231 -1.89% 0 $90.28 $29,244 0.13% MEDICA#378 $120.90 $359.80 $155,882 -8.47% $120.90 $278.08 $128,815 -8.71% 0 $83.54 $27,087 -7.32% MEDICA#303 $118.00 $347.50 $150,174 -11.71% $118.00 $288.48 $123,924 -12.04% 0 $81.02 $28,250 -10.12% HEALTHPART. CHOICE $115.50 $348.00 $150,174 -11.71% $115.50 $288.83 $123,810 -12.12% 0 $81.37 $28,384 -9.73% HEALTHPART. W/COPAYS $114.00 $344.00 1 $148,392 -12.78% $114.00 $283.50 $122,310 -13.19% 0 $80.50 $28,082 -10.70% cArosem unt\cstsnol.sxl INSURANCE COMPANY Delta Dental Fortis Benefits Canada Life Prudential DENTAL INSURANCE RFP RESPONSES (Benefit Deviation Summary) DEVIATIONS FROM SPECIFICATIONS Benefit Reductions: Fully met specifications. Benefit Enhancements: There is a "Hold Harness Agreement" with Network Providers as it relates to charges (Service Fees) which exceed Delta's Contract Fee Agreements. Benefit Reductions: Plan Option # 1 fully met specifications. Alternate PPO Plans A & B have reduced benefits for services from Non -Network. Benefit Enhancements: PPO Plan B has In Network increased benefits for basic services (90%) and major services (60%). Benefit Reductions: Fee -for -Service Plan, so employees are responsible for filing of claims and ineligible coverage to the extent dentists fees exceed the 90th percentile of charges in the zipcode areas applicable. Fluoride treatment for dependents under age 14 (vs. age 19). Benefit Enhancements: Bitewing x-rays every six months (vs. twelve months); fluoride treatment every six months (vs. twelve); space maintainers covered at 100%, no deductible (vs. 80% subject to deductible); sealants covered at 80%, subject to deductible (vs. no coverage). Benefit Reductions: Fully met specifications Benefit Enhancements: Dental Maintenance Organization (DMO) offers no deductible (there is a $5 office visit copay) and increased benefits for most services (vs. current plan). rosemount/dentdev.doc 10 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Dental RFP Rate/Premium Comparison (Two -Tier Rate Structure) Plan Design #1 (1993 Rates) $19.95 1 $51.40 1 $21,506.40 N/A N/A Plan Design #1 (119 94 Rates) $22.70 1 $58.50 $24,475.20 $2,968.80 13.80% ..... .. . . ... . ... . .......... Plan Design #1 $18.19 $47.90 $19,907.04 ($1,599.36) -7.44% PPO -Dual Choice A $16.49 $43.43 $18,048.48 ($3,457.92) -16.08% PPO -Dual Choice B $18.27 $47.67 $19,867.68 ($1,638.72) -7.62% .............. Plan Design #1 $15.01 $45.33 $18,098.40 ($3,408.00) -15.85% Plan Design #2 $15.01 $48.75 $19,083.36 ($2,423.04) -11.27% Plan Design #3 $14.38 $46.55 "X: .................... . .................... $18,238.08 ($3,268.32) -15.20% .......... .... ................ .: .................... .. .................... ................ .. ............................................... .......................................................................... . ...................................................................... ........................................................................... ............................................... ......................................................................... ..... ...................................... ............................................................................. ..................... ..................... ..... ....................... ............................... . .. . ......... ....... x . ...... ....... ........... ...... ............ .... .................................................................................. ................. .. ........................ ... ..... ....... . . . ......... Plan Design #1 JbMO-Dual Choice) $17.50 1 $48.851 $19,948.80 1 ($1,557.60) -7.240 -Plan Design #2 (DMO -Dual Choice) $17.50 $52.85 1 $21,100.80 ($405.60) -1.89% IPlan Design #3 (DMO -Dual Choice) $17.15 $51.79 1 $20,677.92 ($828.48) -3.85% * aL Enrollment: 28/Month Family Enrollment: 24/Month Plan Design #11: Same as Current Plan I Plan Design #2: Current Plan w/Child. Ortho. Plan Design #3: Same as #2 w/$50 Cal. Yr. Ded. rosemount/dentcom.exi 11 11/8/93 N DENTAL RFP EMPLOYER/EMPLOYEE COST ANALYSIS (TOTAL CARRIER REPLACEMENT) :i?;i :;:;5;5iii:Y:iiiii:•ii;:{;ki::55;:};:;55:;:;:;:5;{::::::$ ' . 1C....... i�i:iii8:2::22'2::>+;••;; •: •::�i"±8iiiiiii8iii:: TOTAL PLAN COSTS EMPLOYER CONTRIBUTIONS EMPLOYEE CONTRIBUTIONS ': ........................:::: {:.... :.v.}yn4}::: i.?•}• t :}55:?2'}:{55:52:555::5::588:ii}i i:.v.;: $19.95 ..... .. ^:51!.x••` $0.00 + 55:•'.:5:; �:'{i5i �������� ii ::i:I�FRr1/lM::S�v: 86,703 }:�?��ay ri ?:.{�: N/A >•{>::>::»::>::>:< ..};}i.:i+.,^•.•':5'5:8;2 :::j{rii}' ?: is?;�'�:: w!Y 0 > 55:5::5:: zz<:>: i ..{.:..+ .Y.??>.� x:22 :? i:::�•Ip'tl•�� $51.40 :• $14,803 a"k5�./ 55j: iiia•}::::.}';?.}'.}::•. .;?. N/A Deka Dental 1993 Medica (Choice) art $19.95 $51.40 $21,506 N/A Deka Dental 1994 $22.70 658.50 $24,475 13.80% $22.70 $0.00 $7,627 13.78% 0 $58.50 $16,848 13.81% Canada Lite #1 $15.01 $45.33 $18,098 -15.85% $15.01 $0.00 $5,043 -24.76% 0 $45.33 $13,055 -11.81% Canada Life X2 $15.01 $48.75 $19,083 -11.27% $15.01 $0.00 $5,043 -24.76% 0 $48.75 $14,040 -5.16% Canada Life #3 $14.38 $46.55 $18,238 -15.20% 1 $14.38 $0.00 $4,832 -27.92% 0 $46.55 $13,406 -9.44% Prudential #1 (DMO) $17.50 $48.85 819,949 -7.24% $17.50 80.00 $5,880 -12.28% 0 $48.85 $14,069 -4.96% Prudential A2 (DMO) $17.50 $52.85 $21,101 -1.89% $17.50 $0.00 $5,880 -12.28% 0 $52.85 $15,221 2.82% Prudential #3 1DMO) $17.15 $51.79 $20,678 1 -3.85% $17.15 $0.00 $5,762 -14.04% 0 $51.79 $14,916 0.76% Fortis #1 $18.19 $47.90 $19,907 -7.44% $18.19 $0.00 $6,112 -8.82% 0 $47.90 $13,795 -8.81% Fortis PPOIA) $16.49 $43.43 $18,048 -16.08% $16.49 $0.00 $5,541 -17.34% 1 0 1 $43.43 $12,508 15.51% Fortis PPO(BI $18.27 $47.67 $19,868 -7.62% $18.27 80.00 $6,139 -8.42% 0 $47.67 $13,729 -7.26% o:\msemounhestanamd GROUP LONG TERM DISABILITY INSURANCE RFP RESPONSES (Benefit Deviation Summary) ' INSURANCE COMPANY ' Fortis Benefits ' Prudential UNUM u 1 Reliance Standard Security Life Insurance Company of America Madison National DEVIATIONS FROM SPECIFICATIONS Benefit Reductions: Fully met specifications. Benefit Enhancements: "FICA Plus" - Fortis Benefits will pay employer's share of FICA taxes and handle all tax reporting on disabled employees. Additional 10% discount if City elects to participated in South Central ECSU LTD Pool. Benefit Reductions: Fully met specifications. Benefit Enhancements: None Benefit Reductions: Fully met specifications. Benefit Enhancements: FICA reports and W-2 statements prepared. Cola based on lesser of 10% or annual increase in the CPI. Benefit Reductions: Full Social Security Benefit onsets. Benefit Enhancements: Social Security Employer Tax Program - Reliance Standard will pay the Employer's portion of FICA Taxes and handle all tax reporting on disabled employers. Does not meet minimum specifications in terms of insurance companies financial strength and ability to meet its obligations to policyholders (as determined by the Independent Rating Sources of A.M. Best Company and/or Standard & Poor's). Benefit Reductions: N/A Benefit Enhancements: N/A Does not meet minimum specifications in terms of insurance companies financial strength and ability to meet its obligations to policyholders (as determined by the Independent Rating Sources of A.M. Best Company and/or Standard & Poor's). Benefit Reductions: N/A Benefit Enhancements: N/A Irosemounddevsumm.doc 13 LONG TERM DISABILITY RFP RESPONSE (Cost Comparison) 90 Day Elimination Period FORTIS RELIANCE MADISON SECURITY INSURANCE COMPANY BENEFITS PRUDENTIAL UNUM STANDARD NATIONAL LIFE A.M. Best Rating/Standard & Pooes Rating A + /AA A+ + /AA + A++/AA+ A/A- B+/(N/A) B+/(N/A) Rate Guarantee 2 YR 2 YR 2 YR 3 YR 3 YR 2 YR Pre-existing Condition Limitation 3/3/12 3/3/12 3/12 3/3/12 3/3/12 3/12 I. Rate/$100 of Covered Payroll w/o Cola* (a) w/100% Participation 0.32% 0.49% 0.56% 0.500/0 N/A 0.65% (b) w/90% Participation 0.35% 0.49% 0.67% 0.54% N/A 0.68% (c) w/75% Participation 0.40% 0.49% 0.67% 0.590/0 N/A 0.76% Projected Plan Premiums: (a) Monthly $499.15 $764.32 $873.50 $779.92 #VALUE! $1,013.89 (b) Monthly $491.35 $687.89 $940.58 $758.08 #VALUE! $954.62 (c) Monthly $467.95 $573.24 $783.81 $690.22 #VALUE! $889.10 II. Rate/$100 of Covered Payroll w/Cola (a) w/100% Participation 0.42% 0.60% N/A 0.64% 0.51% 0.80% (b) w/90% Participation 0.45% 0.60% N/A 0.73% 0.51% 0.84% (c) w/75% Participation 0.50% 0.60% N/A 0.51% 0.51% 0.95% Projected Plan Premiums: (a) Monthly $655.13 $935.90 #VALUE! $998.29 $795.51 $1,247.86 (b) Monthly $631.73 $842.31 #VALUE! $1,024.81 $715.96 $1,179.23 (c) Monthly $584.94 $701.92 #VALUE! $596.63 $596.63 $1,111.38 Note: 10% discount if City Note: 5% elects to discount w/6 participate in mos. waiting South Central period for new ECSU Pool hires. *Cost of Living Adjustments (Disability Benefits are adjusted each year based on CPI - See Benefit Comparisons) rosemountfltdrfpi.xls l—" t.n CITY OF ROSEMOUNT PROVIDER SURVEY Clinie/Hoa hal Doebr Name C State Practice Call 1112 BCBS Aware BCBS Blue Phis Medica Choice Prowler HpllhPartaew MW*mtm HeahbPartis Cres Hsalth lteatth Partaen Pradeatld MML Apple Valley Medical Center Crabb, Pallas Apple Valley MN Prhary Care 11 x X X X X A V. Med. Center coned Maas, English, Decker, Pal Apple Valley MN X x X Burnsville Family Phy. Berstow Burnsville MN Prinway Care t X x X x X X Central Pediatrics Keenan Woodbury MN Pediatrics 1 x x x X X X Stollen W at Paul IMN Chiropractor 1 X Daly, Corbett, Ogden $ Abid Corbett st. Paul MN Internist 1 X X x X Kibert St. Paul MN Digestive 1 X Jund Burnsville MN Ear, Nae, Throat 1 X Katz MN EndocrinokW 1 X Endocrinology Clinic Ru Mini— tis MN En 1 x x X Family Med. Clinic Severseike Minneapolis MN Primary Care 1 x X X X X x X Inver Grove Heights Family Practice Ferrara Inv. Grove Hgts MN Primary Care 2 x X X x X X X X Twito Burnsville MN Mental Health 1 X Metropolitan Pediatrics Tate Burnsville MN Pediatrics 2 X X X x X X x X Hubbard Burnsville MN Neurology 1 X OB/GYN Specialists PA Song Burnsville MN OB/GYN 1 X x x OB/GYN West lohnvon St. Paul MN OB/GYN 1 X x Oxboro Clinic Kistner Burnsville MN Primary Caro 1 X x X X x W' Edina MN Psychology 1 X River Valley Clinic Walsh Hastings MN Primary Caro 1 X x X x X X X River Valley Clinic Klottor, Disraeli Farmington MN Caro 2 x X X X X X X River Valley Clinic Evans Northfield MN Primary Caro 3 x X X x X X X Rosemount Family Physicians Detlehon, Lai Rosemount MN primary Care 12 x x x Shakopee Vision Clinic Consoer Shakopee MN Optometrist 1 x x x Southdale Family Praclice(Sundance Kocsis Shakopee MN Primary Caro 1 X x x X x Drs. Hill, Haislett, Wavrin Charvit, Haislet Edina MN OB/GYN 2 x x Southdale OB/GYN Consultan Duquette, Davenport I Burnsville MN OB/GYN s X X x x Southdale Pediatrics Johnson, Hoffman Edina MN Pediatrics 2 X X x X Westview Clinic 9omw West St. Paul IMN Primary Caro 1 x x x I x Farmington Clinic AOebami F MN Primary Caro 1 X I X x 61 100% 41% 1 60% 64% 31% 11% 41% 21% 1 44% romnowWwrraha tmel t 11 1 1 11 N m m m m s m m m m m m m m m m m m m m CITY OF ROSEMOUNT PROVIDER SURVEY Clinic/Hos ' alDocterlVaaa C ' 8ta/s Prictica Cwata ; BCBS Aarar► <: Sees 81ax 1Mra Medea Ct*tee t'reaater HwltYhrWn Ma�Catars HaallAhttmem . C Ileaid� ItaaltM I'irtYaea ['reientW . 1V11'Fil. Abbot Nathweatem MN I x x x x x x x x Cambridge Hospital MN 1 x x x Divine Redeemer st Paul MN 1 x x x x x x x Fairview Rid ea &onside MN 23 x x x x x x x x x Fairview Riverside Minneapolis MN 1 x x x x x x x x x Fairview Southdale Edina MN 4 x x x x x x x x x Memy Med. Ctr. coon Rapids MN 1 x x x x x x Minneapolis Children Minneapolis MN 1 x x x x x x x x x Northfield Hospital NordtWd MN 1 x x x x x x Ramscy County Med. Ctr. St Paul MN 1 x x x x x x x x ReginaRcgina Medical Complex Has' MN I x x x x x x x x x South Suburban Medical Center F MN 1 x x x x x x x x x St. Francis Hospital Shakopee MN 1 x x x x x x x x St. Josephs st Pew MN 1 x x x x x x St. Mar YZ MN 1 x St. Paul Children's st Paul MN 3 x x x I x x x x x x U of M Hospital Minn lis MN I x x x x United Hospital st Paul MN s x x x x x x x Unity Fridley Fridley MN 1x x x x SO 100% 98% 92% 90% 94% 80% 80% 74% 82% annwuaVsurchsnmd 0 a m m m m m m EMPLOYER/EMPLOYEE CONTRIBUTION ANALYSIS e:kosemount%&nsl94 s.exl 9 EMPLOYER/EMPLOYEE CONTRIBUTION ANALYSIS c:kosemountune194 b.exl [---j a W m EMPLOYER/EMPLOYEE CONTRIBUTION ANALYSIS m = m m m alroeem*mtvansl94c.exl a EMPLOYER/EMPLOYEE CONTRIBUTION ANALYSIS c:kosemount%&nol94d.oxl EMPLOYER/EMPLOYEE CONTRIBUTION ANALYSIS c:Vosemount%anaI94e.exI gi!l; U K. -g gilii . . . . . . . . . . . . . . . . . :R7.7 .. . . . . . . . . X0. . . . . . . . . . . . . . . . . . . . . .. ........ . . i;M 4..::: . . . . . . . . . . ......... ......... . . . . . . . . . . . . . . 1W.W. ROOM" Q .... . . . . . . . A BCBS - AG IS)i $129.89 13 $1,889 $20,283 Prudential (s) $118.58 27 $3,202 $38,420 (f) $399.88 28 $10,392 $124o700 (f) $355.75 27 $9,805 $115,283 BCBS - 1 at$ (a) $119.54 14 $1,874 $20,083 (f) $426.89 1 $421 $5,048 Totals .................. 54 $14,175 ........... ................................. ......... $170,095 Totals $153,883 ($18,412) -9.65% ................................... .................................... .....X .. ........................................ .......... .......... SCSS - AG (a) $119.54 13 $1,554 $18,848 Prudential (a) $118.58 27 $3,202 $38,420 (f) $315.29 26 $8,198 $98,376 (f) $272.74 27 $7,364 $88,388 BCBS - lot$ (a) $119.54 14 $1,874 $20o083 (f) $315.29 1 1 $315 $3,783 Totals Totals $128,788 ($14,103) -10.01% ............................. ...................................................... X.x ............ BCBS - AO (8) $10.33 13 $134 $1,611 Prudential (s) $0.00 27 $0 $0 (f) $84.39 26 $2,194 $26,330 (f) $83.01 27 $2,241 $28,095 BCBS - 1st $ (a) $0.00 14 $0 $0 (f) $105.40, 1 $105 $1,265 1 Totals 1 54 $2,434 $29,206 Totals 1 1 $26,895 ($2,311)1-----7.91 % c:Vosemount%anaI94e.exI rn EMPLOYER/EMPLOYEE CONTRIBUTION ANALYSIS c:No**mount%"94 f.ex I m = m = = i = i = m = = = = m = m a m m m m m m EMPLOYER/EMPLOYEE CONTRIBUTION ANALYSIS c:%roeemount\enel94 g.exl 00 00 EMPLOYER/EMPLOYEE CONTRIBUTION ANALYSIS .....:..... :..: .. .) .,......r . ....vvv, }30C :.....: v... x .. .........:................... , .:.....a...... ...:r . ..:: ........... r.............. ... n......• ..,...........,....v... r:..... vn ....v }..... v...x4 ....n .::::::::.v :. .:...... .. \v.n..v ...,.:.:::: .::::: .:::: i....r..,{:.; .. .:..r.... n.., r,:. ...:... ..::::::•i:•:i:;•}:: :... ... {.: :>:'.:;:., .i.., .. i.. i}xi}}:•i•:+•i}:.;};.}}}•::.;a;;. �.....v::: n+tv.n....:: a;.;{.:{:.:{.}:.:..::..... .a .fin.. �vx::::::..... r............ :.;'}::.}:.:.}:. v:.v::: nv?.Ji:•i:•:titi•}:•}:r•.v r..�. ..v... ..4v.n.....v....a..,. .... r. ...:......, , .a.v..: v ........... , \nn }..... .. i. vvn\ ................ v .. n...........................................h...........:... n�......3.+E•............. ..:. : n......n n..........v......n ...... n...................n... n.}................ .. ....Y .... .............. v.. vv..... ......n...v .v ...v.. .... ........ v.........vn ....... .. n., vv ..v...... ....... ... v....... n............. ...a..,n...+.......r.x.:......:.v.:.r.:nn:......................................n....n n ......,.....v.......v :..:.:.............:... .. \..n. .........r.....:::::.:'v: nv w:;: }:::nv::.•::•T}:: .. .. - 2{i•}:.}::.... r:: {....... n.......... •:,{•::•.ti}{:{.}:.:n:•}}'{{:{.}ii:P:•.ti�i n... n.....:..n :..... .n.. r........... is•}:,?.}'•}:•}:•}:•}•}:.vv}}'?• n ...............v ....v..........x............ .....v..... n.4:::�::+n}}}:•}i!'}}}:v.4.f{: .: ..{........ v •}iti•;{.}:{?. v::?•:•:{�:•}:•} .n .a v..?v ......... n. n.. :. ,:....... . n:: v}....4n r........... ..'f, v . v.. r ...... ..: v:. . .:. v..r . : }.. r ..r.... .r ...,....,.,?..�+i`.n .:... n. vA ........... ................................................r ..,....... r .................. ......n....v... nv....v......vvxv........ . ............... n....... n... ......... ............... w::n:v:n�v:: xv:::: w: •: ...,..::::: •::.. v: .: ..; .}in:: •w:::: •w::: •: •w• ...... r ................. n...............: v. ,.:. v..:..:..:.. n•.....; •., ... .x.• , .. :;• .: .............. ..... ..., .. . , .... ..•........, ... .. . ..............n......v....................v.....n...................n.............................L..........r..v....r..............................................n... ............................ n........................................ .S.n..........n........................................ v n...., .....,................;..... . ....... ......................:..:::: ................... r.................................... m::::::::::::::: :..,. vn. r .rv. :r•:: r..�. r. 4'i ka.... ..h.. r.... ......n..... ., tr..r: x:.•: •n•:...,.} F r......:...:...:...a r :.v+ v..v ..............: r...4 .;.::::: ,• r.v. •v:,rr?^::::::::.v:::::: :; •o..: •.....v............... ...,................ •:::: �:: tttix•}:.!:.}:•}}'•^•:., r:::::::: :n?:rw.!:}}•:: �:?:?•}ii:•i •: .. ..v:•. v!.{.: ..,{.... }!:tiv:•..... •: ;n:: •.v::::: is i:n ::.L:::: ,•!:•}::v+•vx:: .: w:?:•.+•}:Sk Sk.S : •?'{k}:Si:C k:::.?.. .v nY:!!Y.•$}}:{{: Y•.'•:?•:tii}'•i }'•: } \::•'i '}:'•:... .... ,r...:.:2 ..........yy::�� . r. ..... .... ......v.{...v..9.vn.vv................... ....:. ... ................. n...................................:..r..... .... }.. a ...:..1...... n ............................... .., .... ...ti+�:...... .... . .. \..:.... .. r.... 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Medica Premier BCBS - AO (s) $129.89 13 $1,889 $20,283 #303 (s) $118.00 27 $3,132 $37,584 (f) $399.88 28 $10,392 $124,700 (f) $347.50 27 $9,383 $112,590 BCBS - 1st$ (s) $119.54 14 $1,874 $20,083 (f) $420.89 1 1 1 $421 $5,048 Totals 54 $14,175 1$170,095 Totals $150,174 ($19,921) -11.71% n.... ?;}:.; :}; y•: ;....:..:: n.:. r..; r.; v.. •v::.,::v va•:: i+•: v: r: :::.. ...y. .: .. �. Gi.Riliin7��WJ:1'.�Vi7�.::::::::^.•iiiiiii::;:ytisyi:;:$;:;}:k:;:;:;:j::{;:;:j :.f•:: tS^:•}x?:!:.`:.`iskv........}}:!!:::•?:....... r: a...v.:: . w:.v::::::: .v.; ,...,r......................v......v............................................. k•:✓:2:iri: iri}:...........}•!•}}!}4.-•}:•}}!v:•}.iii.. ..•i:•}i;}:C:•>:; nv; }::::::: x:: w:::::::::::::::::::::::::::::::::::.v:::::.v:::::::::::: v........... ::::::::::::::::::ti::�ii iii:�:;:;:$::;:;:;:?:::{t:;`:;:;:iiYry::tijj:•.:: •:tiriii ktik:: iii•:i:::i i•:i::::<ik::::k}....................... �. ...; ......... 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T�4..�1..4....C'�........................flata�..........�''ou�s........�retnlum.. f:.. •}:.;:.:.:;•}:•. .}:tt:•}}:• ........tiliff#kMi....... .}:.:?:}:.::>�remhtert::�::{.::::4r::i.'as1::::>:::»:::::.ar.. . •: .:�tia >:•'•:»%:. i....... HeahhPartners Choice w/Hosp. BCBS - AG (s) $129.89 13 $1,889 420,283 Copay (s) $114.00 27 $3,078 438,938 (f) $399.68 26 $10,392 $124,700 (f) $344.00 27 $9,288 $111,456 BCBS - tst8 (s) $119.54 14 $1,874 $20,083 (f) $420.69 1 $421 $5,048 Totals 54 414,175 1$170,095 Total 4148,392 1 (421,703) -12.76% !8 E IPI.OYER.: pfiTii...11..lQNS T ::....::::::::>::;::::::::::::::::>::::s::?>:::><:»:<:;::;::::::>;::::>::::;....::>::... _......;......:: ............................................................................................... ..... <:»::... ':>::t.22'•.'SE-'.:v"•.3:•?:#h%'.rrrr +3r#5�'` `2?7.t.::t?'•<:`•> HeahhPartners Choice w/Hosp. BCBS - AG (s) $119.54 13 $1,554 $16,648 Coe (s) 4114.00 27 43,078 $36,936 (f) $315.29 26 $8,198 $98,376 (f) $283.50 27 47,115 $85,374 BCBS - 180 (s) $119.54 14 $1,674 $20,083 (fl $315.29 1 $315 $3,783 Totals 54 $11,741 4140,890 Totals 4122,310 (418,580) -13.19% :.:i::.:}}}i:}::}:::::.}Isis»}}}}}}v}:}:?}:};}:}:}}}?:::: •}v;.+}v:::.}'::::....:...::..v.,........v...v....................................................::::: :.....:..............::........ •::..•v:.:....... . .... :•:: .:. ...:....:....................................................••.....•:•.•:,.•....::4•:.::::?::::: ..... ............. :..•• ::... ..... :........t.....•{{4:::•}:4:•.}}}}:w:}:v:•}:•.?+.v:•}}}:•r}:•i:v:4:4:4:4:4:•}}:4:4:4:4:4:4:4:?4:•}:{4:41:4:4}:4}:4}}}:4:4. •::: :wr.....:................ nv: {:4vw.::n:{::.}}:{.4: ::::.: n.:::::.v.::::: m:.v:::::: :.:.:: ,.,....:...; .......} rrt,•v.: t......4 .., }}iiii <:':i::'4i}i$riiiiiit�ii}... t. .:. \..:................{..: •}:?, {1 4n....... .... .. ...\Jii..... .. r , ...............................................................................................................................::::::::::.......:::.v:::.::::}::::::::::::.v:::::::::::::::.v::::: ............................................................................................................................................................ . ....... . . ... . ............................................................w::\w:::::::::.v:.:vw::.vnw.:::::::::r: ................:..:.. .. .... .... .. .:: n......... ......n................................................................... .... .. x::::::::::::::::::: n.� . . .. . . . v}:: }::•nvvv:r}:.t:.v;'?wnvv.v::nv:::::::::.v.,v::.n:: :v::::::.v}:: }:::::::v}: ... •: }:::: •.v:::::::::::::::: .. n..... n.............. •:tw:: h{v.•:: .r..v..... ..... nv: v: •:::nv}:.v: • : ••: v:? v •Y..:.vnvw::::::;::: xt...........v-*"M r ntit. ....... .....: }.••.. :v:.::.v:::::::}:•}:•:•}}'?{C:::•: . n v......t...... . .. ....4t.....t........ }:.v::::: w:;: .. tw"ii:>,• }:::nw:;:: •.v:.wr:: •.vw:: x: x.•r.• ::i •. n. �. t:4:{•: •v::i�:<?t•'•: • .v::::::::; rv:}::::::::.w:::::r.v:nv.:v:::.v.v::::.vx::::.v::::.v:::::: �. .........r:..................................................................v.................... .. . .............................................................................. 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