CITY COUNCIL AGENDA ITEM
Memo Date: May 20, 2024
Agenda Date: June 4, 2024
Prepared By: Tammy Gemmati, Administrative Services Director
Through: Stockton Whitten, City Manager
Requested Action:
title
Approve, as recommended, the proposed Fiscal Year 2025 benefit renewal medical, dental, life, and disability insurance; and to authorize the City Manager to sign related agreements.
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BACKGROUND:
The City of Cocoa offers group medical, dental, vision, and life insurance to its employees and retirees and their dependents (subject to eligibility guidelines). For the Fiscal Year 2022 benefit renewal, the City's benefit broker Gehring Group (Gehring) released a Request for Proposal (RFP) for medical, dental, pharmacy, and Employee Assistance Program (EAP) benefit plans. Cigna was the lowest bid in all categories based on the City's network utilization. Since then, Gehring has been successful of negotiating the medical renewals to a lower rate increase versus the projected increases.
The City has an Insurance Task Force (ITF) committee comprised of different departmental and union representatives with the purpose to bring forth any concerns related to the City's benefit plans and to make recommendations on the insurance plans offered by the City. The City held an ITF meeting on May 16, 2024 to review the recommended renewal.
Medical Plan -For the Fiscal Year 2025 renewal, the initial projections based on the City's claims experience was anticipated to be a 10-12% increase due to the recent large claims experience. The Gehring Group worked directly with Cigna to negotiate the renewal down to a 5% increase.
With this renewal, the City will continue its practice of paying 100% of Employee contributions and the current funding ratio of dependent contributions (Employee +1: 56% Family: 58%). Here is a summary of the employee and City impact (based on current enrollment):
Fiscal Year
Total
City
Employee
Retiree
FY24
$5,645,093
$4,870,83...
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