Title
Approval for the Mayor and/or City Administrator to sign a contract with Aetna for group health benefits and approval of the City of Roswell Employee Benefits program for the period October 1, 2012 to September 30, 2013.
Presented by Dan Roach, Human Resources Director
Body
Item Summary:
An RFP was issued and invitations to bid were solicited from all major insurance providers in the marketplace for all lines of coverage (Medical, Dental, Life, STD/LTD). Bids were received and evaluated on the basis of coverage levels, disruption rates, price, short and long term funding strategy and competitor benefits. The recommendation is to bind coverage with Aetna for an HRA (Health Reimbursement Arrangement) and an HSA (Health Savings Account) for medical insurance coverage for all eligible employees, with a combined decrease of 0.45%. These plans are high deductible, consumer driven plans with the same plan design offered last year. The recommendations for ancillary lines of coverage are as follows: Dental - Aetna, Life - Aetna, STD/LTD - Aetna and vision insurance through Aetna (the premium to be fully paid by employees electing coverage), is recommended.
Committee or Staff Recommendation:
On July 25, 2012 the Community Development and Transportation Committee recommended placing this item on the August 13, 2012 Mayor and Council Agenda.
Financial Impact:
The FY 2013 Approved Budget for Group Insurance premiums is $6,338,331. Benefits included are health, dental, life, short-term disability, long-term disability and the Employee Assistance Program (EAP). The contract with Aetna is estimated at $5,296,284, on average the City contributes 87% and employees contribute 13% toward the cost. Funds are available in Org 60215402, Account 512100.
Presented by:
Dan Roach, Human Resources Director