CITY OF HALLANDALE BEACH

MEMORANDUM

DATE:                        August 12, 2009

TO: D. Mike Good, City Manager

FROM: George Amiraian, Director of Personnel/Labor Relations

SUBJECT:     Discussion of Group Medical and Dental Coverage for FY 2009-2010

PURPOSE:

To discuss Group Medical and Dental Coverage for Fiscal Year 2009-2010.

BACKGROUND:

The City’s current provider of Group Health Insurance is Vista (Coventry) Health Plan, which gave the City a proposed contract renewal with an increase of 17.9% for Fiscal Year 2010.  The Dental Insurance is provided by Delta Dental, which gave the City a proposed contract renewal rate for the upcoming fiscal year with a 4% increase.

DISCUSSION:

Staff and Gallagher Benefits Services, the City’s Insurance Consultant, have been negotiating with Vista Health Plan to reduce the proposed medical insurance renewal rate.  Vista offered four (4) Health Maintenance Option (HMO) Plans with an option for the Point of Service (POS).  A Preferred Provider Option (PPO) is also provided for retirees who live out of the tri-county area.

Staff has negotiated with Delta Dental to reduce the renewal rate to 0% and to maintain the same benefits for both Delta Care and Delta Dental.

Last year, the budgeted amount for insurance services, including Group Health Insurance and Dental Insurance, was $3,424,000, while for Fiscal Year 2010 staff is proposing a reduced budget of $3,320,000.

RECOMMENDATIONS:

1. The City Commission authorize the City Manager to continue negotiations with Vista (Coventry) Health Plan in the best interests of the City; and,

2. Authorize the City Manager to sign all necessary documents to execute agreements with both Vista (Coventry) Health Plan and Delta Dental, effective October 1, 2009, in an amount not to exceed $3,320,000; and,

3. Authorize the City Manager to renew the Health and Dental Contracts 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

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