CITY OF HALLANDALE BEACH

M E M O R A N D U M

DATE:             August 25, 2008

TO:                  D. Mike Good, City Manager

FROM:            George Amiraian, Director of Personnel/Labor Relations

RE:                  Request For Proposal/Group Medical and Dental Coverage

PURPOSE:

Discussion of Group Medical and Dental Coverage for FY 2008-2009 and authorize City Manager to select a company in the best interest of the City with costs not to exceed approved budgeted funds.

BACKGROUND:

The City of Hallandale Beach is currently contracted with Humana Health Plan as our Medical Benefits Carrier and Delta Dental as our Dental Carrier.

Humana has been the City of Hallandale Beach Medical Carrier since October 1, 2005.  Delta Dental has been the Dental Carrier since October 1, 1997.

DISCUSSION:

Humana Health Plan notified the City of Hallandale Beach that there would be a 14% increase in premiums for FY 2008-2009.  The Delta Dental increase for the FY 2008-2009 was 11%.  The City Manager instructed the City’s Insurance Consultant, Gallagher Benefit Services and Staff to initiate Request For Proposals (RFP) to obtain quotes from Medical and Dental Carriers based on our claims experience of 78%. Additional review of these proposals is needed before a determination can be made. The City’s renewal date is October 1, 2008.

Staff recommends that the authority of choosing a carrier for both Medical and Dental Benefits be given to the City Manager in the best interest of the City at a cost not to exceed $4,000,000 which is proposed for the FY 2008-2009 budget.

RECOMMENDATION

The City Commission:

• Authorize the City Manager to chose a Medical and Dental Carrier in the best interest of the City from companies responding to the Request For Proposal (RFP) FY 2007 -2008-005 with costs not to exceed the monies allocated in the proposed FY 2008-2009 budget.

• Authorize the City Manager to negotiate a contract with carriers chosen and the ability to renew on a year to year basis in the best interest of the City.

Reviewed

 ____________________________                                                   ________

D. Mike Good, City Manager                                                                     Date

  _____   Approved      _____     Denied       _____    Hold for discussion

COMMENTS: ____________________________________________________________________________________________________________________________________________

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