City Council Meeting
City of DeBary
Subject: Employee Medical Insurance
From: Interim City Manager
Meeting/Hearing Date: December 7, 2016
( ) Ordinance
( ) Resolution
(x ) Other
( ) Supporting Documents/Contracts
Staff met recently with the City’s insurance broker to review multiple medical insurance proposals for 2017 and reduced the list to two options for medical coverage. The Florida Blue proposal is a continuation of the City’s current 80/20 plan but at a cost increase of 12.4% and the other proposal is a Florida Hospital Care Advantage 90/10 HMO Plan that is a 5.6% cost increase compared to the 2016 plan rates.
The Florida Hospital Care Advantage Plan consists of a regional network in Volusia, Seminole, Flagler, Orange, Osceola and Brevard Counties that offers greater protection for employees and their dependents through lower deductibles and lower maximum out of pocket costs. This plan will reduce the amount families would have to pay by up to $6,800 when compared to the Blue Cross Blue Shield proposal, should a catastrophic event be experienced. The plan also includes fitness benefits and identity protection at no additional cost.
The only disadvantage of the Florida Hospital Care Advantage Plan is that some employees whose providers are not currently in network may have to transfer to in-network providers to avoid paying out of network costs, which are still less than the total out of pocket costs associated the current plan.
Due to the enhanced benefits for employees at lower cost than the Florida Blue plan, it is recommended that City Council approve the Florida Hospital Care Advantage Plan at a cost of approximately $309,617 for 2017, which is 15% under budget.
Approve contract with Florida Hospital Care Advantage Plan for employee health care.
City Council Action:
( ) Approved As Recommended
( ) Approved With Modification
( ) Disapproved
( ) Continued Date:
( ) Other