Loading...
HomeMy WebLinkAbout2021-08-24 - Agendas - SpecialCity of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 City Council Final Agenda Tuesday, August 24, 2021 5:30 PM City Hall Room 219 City Council Members Council Member Sonia Gutierrez Ward I Council Member D'Andre Jones Ward I Council Member Mark Kinion Ward 2 Council Member Matthew Petty Ward 2 Council Member Sloan Scroggin Ward 3 Council Member Sarah Bunch Ward 3 Council Member Teresa Turk Ward 4 Council Member Holly Hertzberg Ward 4 Mayor Lioneld Jordan City Attorney Kit Williams City Clerk Kara Paxton City Council Special Meeting Final Agenda August 24, 2021 Call To Order Roll Call Pledge of Allegiance Mayor's Announcements, Proclamations and Recognitions City Council Meeting Presentations, Reports and Discussion Items Proposed Agenda Additions A. Consent: None B. Unfinished Business B1 2021-0573 2022 EMPLOYEE BENEFITS PACKAGE: A RESOLUTION TO APPROVE THE 2022 EMPLOYEE BENEFITS PACKAGE At the August 17, 2021 City Council meeting this item was tabled for one week. A Special City Council meeting will be called on August 24, 2021 to discuss this item. C. New Business: None D. City Council Agenda Session Presentations E. City Council Tour F. Announcements G. Adjournment NOTICE TO MEMBERS OF THE AUDIENCE City of Fayetteville, Arkansas Page 2 Printed on 811812021 City Council Special Meeting Final Agenda August 24, 2021 All interested persons may appear and address the City Council on Unfinished Business, New Business, and Public Hearings at City Council meetings. If you wish to address the City Council on an agenda item, please wait for the Mayor or Chair to request public comment. When the Mayor or Chair recognizes you, please start your public comment by giving your name and address. Comments are to be addressed to the Mayor or Chair. The Mayor or Chair will direct your comments to the appropriate elected officials, staff, or others for response. Keep your comments respectful, brief, to the point, and relevant to the agenda item being considered. Each speaker from the public will be allowed one turn to speak for discussion of an agenda item. Below is a portion of the Rules of Order and Procedure of the Fayetteville City Council pertaining to City Council meetings: Agenda Additions: A new item which is requested to be added to the agenda at a City Council meeting should only be considered if it requires immediate City Council consideration and if the normal agenda setting process is not practical. The City Council may only place such new item on the City Council meeting's agenda by suspending the rules by two-thirds vote. Such agenda addition shall be heard prior to the Consent Agenda. Consent Agenda: Consent Agenda items shall be read by the Mayor and voted upon as a group without discussion by the City Council. If a Council Member wishes to comment upon or discuss a Consent Agenda item that item shall be removed and considered immediately after the Consent Agenda has been voted upon. Unfinished Business and New Business: Overview Period: Agenda items at a City Council meeting shall be introduced by the Mayor and, if an ordinance, read by the City Attorney. City staff shall then present a report. An agenda applicant (city contractor, rezoning or development applicant, etc.) may present its proposal only during this presentation period, but may be recalled by a Council Member later to answer questions. City staff, Council Members and applicants may use electronic visual aids in the City Council meeting as part of the presentation of the agenda item. City staff s presentation and an Applicant's presentation whether presented by one or more than one presenter shall each be limited to a maximum of ten (10) minutes unless the City Council by unanimous consent or majority vote allows additional time. Public Comments: Public comment at a City Council meeting shall be allowed for all members of the audience who have signed up prior to the beginning of the agenda item they wish to address being opened for public comment. Speakers shall be limited to a maximum of five (5) minutes to be broken into segments of three and two minutes. Amendments may receive public comments only if approved by the City Council by unanimous consent or majority vote. If public comment is allowed for an amendment, speakers will only be allowed to speak for three (3) minutes. The City Council may allow both a speaker additional time and an unsigned -up person to speak by unanimous consent or majority vote. Courtesy and Respect: All members of the public, all city staff and elected officials shall accord the utmost courtesy and respect to each other at all times. All shall refrain from rude or derogatory remarks, reflections as to integrity, abusive comments and statements about motives or personalities. Any member of the public who violates these standards shall be ruled out of order by the Mayor, must immediately cease speaking and shall City of Fayetteville, Arkansas Page 3 Printed on 811812021 City Council Special Meeting Final Agenda August 24, 2021 leave the podium. Interpreters or Telecommunications Devise for the Deaf (TDD), for hearing impaired are available for all City Council meetings, a 72-hour advance notice is required. For further information or to request an interpreter, please call 479-575-8330. A copy of the complete City Council agenda is available on our website at www.fayetteville-ar.gov or in the Office of the City Clerk, 113 W. Mountain, Fayetteville, Arkansas (479)575-8323. All cell phones must be silenced and may not be used within the City Council Chambers. City of Fayetteville, Arkansas Page 4 Printed on 811812021 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Text File File Number: 2021-0573 Agenda Date: 8/24/2021 Version: 1 Status: Tabled In Control: City Council Meetinq File Type: Resolution Agenda Number: B.1 2022 EMPLOYEE BENEFITS PACKAGE: A RESOLUTION TO APPROVE THE 2022 EMPLOYEE BENEFITS PACKAGE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the 2022 employee benefits package as recommended in the staff memorandum attached to this Resolution. City of Fayetteville, Arkansas Page 1 Printed on 811812021 Missy Cole Submitted By City of Fayetteville Staff Review Form 2021-0573 Legistar File ID 8/17/2021 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 7/26/2021 HUMAN RESOURCES (120) Submitted Date Division / Department Action Recommendation: Staff recommends City Council approve the 2022 employee benefits renewals as proposed in the staff memo. Budget Impact: xxxx.xxx.xxxx-5108.xx Citywide Account Number Fund Project Number Project Title Budgeted Item? Yes Current Budget $ 6,146,240.00 Funds Obligated $ 3,458,417.64 Current Balance 2,687,822.36 Does item have a cost? No Item Cost $ - Budget Adjustment Attached? No Budget Adjustment $ - Remaining Budget 2,687,822.36 V20210527 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Approval Date: Original Contract Number: Comments: CITY OF FAYETTEVILLE ARKANSAS MEETING OF AUGUST 17, 2021 TO: Mayor and City Council THRU: Susan Norton, Chief of Staff FROM: Missy Cole, HR Director DATE: July 23, 2021 SUBJECT: 2022 Employee Benefits Renewals CITY COUNCIL MEMO RECOMMENDATION: Staff recommends Council approve the employee benefits package for 2022 as outlined below and in the attached documents. BACKGROUND: Staff and Gallagher Benefit Services, the City's benefits broker, have reviewed the annual renewals for employee insurance plans. Employee benefits renewals are brought forward at this time to ensure the annual open enrollment may proceed according to schedule. DISCUSSION: Health Insurance The one year look back period of the City's health claims shows a 91.2% utilization rate of claims paid versus premiums paid. Under the City's current renewal rate guarantee with Arkansas Blue Cross Blue Shield, this utilization rate would result in a 6% premium increase for 2022 for the City's medical plans. Staff and the broker have reviewed the structures of the plans and utilization of the City's current offerings of both the HSA-compliant, HDHP and the PPO plan and recommend plan modifications to both plans to negate the 6% premium increase and lower premiums for both plans in 2022 as compared to current 2021 premiums. The 2022 HDHP plan will have a lower deductible ($2800 individual/$5600 family), after deductible is met coinsurance will be 80%, maximum in -network out of pocket ($5600 individual/$11,200 family). In adopting this plan structure, the overall premium will decrease by 7.4% from current year's premiums. The 2022 PPO plan will have a higher deductible ($1500 individual/$3000 family), however; this plan will provide co -pays for primary care, specialists and urgent care visits, co-insurance will be 80%, maximum out of pocket ($4500 individual/$9000 family). In adopting this plan structure, the overall premium will decrease by 0.6% from current year's premiums. Please refer to the attached document which reflects premium decreases and assumes current cost sharing percentages between employer and employee. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 Staff and the broker recommend renewing with Arkansas Blue Cross Blue Shield for 2022 with the proposed plan structure changes and premium decreases of 7.4% to the HDHP option and 0.6% to the PPO option. By moving to the proposed plans, annual cost savings will be over $800,000.00 to premiums. Staff recommends changing vendors for COBRA administration to Consolidated Admin Services (CAS). The move to CAS will cost an additional $2,556 annually over WageWorks based on current enrollment. CAS is an Arkansas -based provider that will provide better communication and support for internal and external customers than the current vendor. City Paid Life and LTD Benefits OneAmerica has provided a rate hold on Employer Paid Basic Life and Employer Paid LTD products for 2022. Staff recommends renewing with OneAmerica for the same benefit coverage and current rates. Flexible Spending Accounts Staff recommends American Fidelity continue as the administrator of Flexible Spending Accounts with no cost for services. Health Savings Accounts Staff recommends First Security Bank continue as the administrator of Health Savings Accounts with no cost for services. Employee Paid Dental Insurance Delta Dental has provided a rate hold for 2022. Staff recommends renewing with Delta Dental. Voluntary Employee Paid Benefits OneAmerica has provided a rate hold for 2022 on employee paid Short Term Disability and Employee Paid Life Insurance. Staff recommends renewing with OneAmerica for these products. Supplemental Benefits Paid by Employees Staff recommends continuing to offer additional supplemental benefits to employees through American Fidelity which include: Disability Income Insurance, Accident Only Insurance, Cancer Insurance, Critical Illness Insurance, Life Insurance, AF Term Life Insurance, AAF Permanent Life Insurance and Hospital Gap Insurance. BUDGET/STAFF IMPACT: The costs of these planned insurance/benefit items are being budgeted in the City's 2022 budget. Attachments: 2022 vs. 2021 Health Plan Costs 11 2022 vs. 2021 Health Plan Costs PPO Plan Rate Tier Total Monthly Premium 2021 Total Monthly Premium 2022 Monthly Employee Contribution 2021 Monthly Employee Contribution 2022 Monthly Employer Contribution 2021 Monthly Employer Contribution 2022 Employee/ Employer Cost -Share % Employee Only $678.44 $674.34 $172.92 $171.88 $555.06 $458.181 $755.461 $505.52 $502.46 25.499/6/74.51% Employee + Spouse $1,479.32 $1,470.36 $558.44 $920.88 $915.30 37.759/o/62.25% Employee + Child(ren) $1,221.16 $1,213.76 $460.981 $760.181 $755.58 37.759/6/62.25% Family 1 $2,013.42 $2,001.241 $760.061 $1,253.361 $1,245.78 37.759/6/62.25% High Deductible Health Plan Rate Tier Total Monthly Premium 2021 Total Monthly Premium 2022 Monthly Employee Contribution 2021 Monthly Employee Contribution 2022 Monthly Employer Contribution 2021 Monthly Employer Contribution 2022 Employee/ Employer Cost -Share % Employee Only $352.98 $326.98 $49.62 $45.96 $303.36 $281.02 14.06%/85.94% Employee + Spouse $761.28 $705.20 $113.26 $104.92 $648.02 $600.28 14.88%/85.12% Employee + Child(ren) $576.681 $534.20 $85.801 $79.48 $490.881 $454.72 14.88%/85.12% Family $1,069.041 $990.30 $159.041 $147.36 $910.001 $842.9414.889/o/85.12% Overall Comparison of Cost Savings of Staff Proposed Plan vs. Renewal Rate Rate Tier Current HDHP Rates HDHP w/ 6% Renewal Proposed HDHP Current PPO Rates PPO w/ 6% Renewal Proposed PPO Employee Only $352.98 $374.16 $326.98 $678.44 $719.15 $674.34 Employee + Spouse $761.28 $806.96 $705.20 $1,479.32 $1,568.08 $1,470.36 Employee + Child(ren) $576.68 $611.28 $534.20 $1,221.16 $1,294.43 $1,213.76 Family $1,069.04 $1,133.18 $990.301 $2,013.421 $2,134.23 $2,001.24 Total Monthly Premium $474,711.24 $503,193.91 $439,746.01 $56,650.94 $60,050.00 $56,308.19 Annual Premium $5,696,534.88 $6,038,326.97 $5,276,952.07 $679,811.28 $720,599.96 $675,698.33 Annual Costs Savings $761,374.90 $44,901.63 Total Annual Savings on Premiums w/ Proposed Plans: $806,276.53 CITY OF FAYETTEVILLE ARKANSAS Renewal Analysis and Process Gallagher Benefit Services 1 8/17/2021 Gallagher Risk Management I Consulting © 2020 ARTHUR J. GALLAGHER & CO. I AJG.COM Tailored Solutions for your needs Energy Equity Advisors Healthcare Higher Education Gallagher Insurance Risk Management 1 Consulting Hospitality & Restaurant n•••nI C14) D) Public Sector Religious Nonprofit Transportation © 2020 ARTHUR J. GALLAGHER & CO. I AJG.COM �Il MEETING MgI2KE�,��(i �S 5����G T wTF�'i �y9 Develop Goals �,�Issue Ongoing t�s� Resolution Client Support •� 2 z � 2 y Q Z 2 Z Understand Your Data Compliance Project Support nagement m kk z c� w S 3 00 3� Identify Opportunities ?i Vendor Financial Management Monitoring aY a o�y o y,� Continue to Optimize �OddnS1N-461117021N3'8 NOI1tl'31NnWW00 • L COF Utilization Claims v. Premium Gallagher Insurance Risk Management I Consulting Paid Month/Year 05/2020 Mem bers 1,811 Contracts 780 Premium $520,271 Medical Claims $234,449 Pharmacy Claims $172,767 Tota I Claims $407,216 06/2020 1,793 773 $502,026 $299,047 $138,692 $437,739 07/2020 1,795 769 $522,210 $310,374 $144,292 $454,666 08/2020 1,808 774 $526,645 $456,266 $147,125 $603,391 09/2020 1,783 767 $518,022 $316,082 $129,389 $445,470 10/2020 1,788 775 $507,755 $327,354 $123,250 $450,603 11/2020 1,758 766 $508,222 $373,080 $118,270 $491,349 12/2020 1,764 768 $522,074 $382,672 $124,293 $506,965 01/2021 1,791 781 $541,577 $297,263 $85,608 $382,871 02/2021 1,780 776 $538,313 $386,882 $114,594 $501,476 03/2021 1,771 773 $532,195 $300,612 .5163,531 $464,143 04/2021 1,752 769 $531,595 $405,830 $168,052 $573,883 Total 21,394 9,2711 $6,270,906 $4,089,910 $1,629,862 $5,719,772 91.2% MLR © 2020 ARTHUR J. GALLAGHER & CO. I AJG.COM • •• •. enewal i Percent o ncrease Year 2016 6.4% 2017 5.6% 2018 20% 2019 15% 2020 0% 2021 6% '- • 5/1/15 — 4/30/16 $4,322,202 5/1/16 — 4/30/17 $4,576,036 5/1/17 — 4/30/18 $4,713,036 5/1/18 — 4/30/19 $4,831,586 5/1/19 — 4/30/20 $5,455,647 5/1/20 — 4/30/21 $5,719,772 Totals $29,618,279 Gallagher Insurance Risk Management 1 Consulting $4,216,666 102.5% $4,513,431 101.4% $4,913,154 95.3% $5,757,503 83.9% $6,274,795 86.9% $6,270,906 91.2% $31,976,456 92.6% 5 © 2020 ARTHUR J. GALLAGHER & CO. I AJG.COM Paid Distribution of Claims HDHP Gallagher Insurance Risk Management 1 Consulting JAN IS- DEC 18 JAN 19 - DEC 19 JAN 20 - DEC 20 CLAIMANTS PAID CLAIMANTS PAID CLAIMANTS PAID TOTAL PAID # % $ % # % ., % # ac $ 9E [�® 3 0.2% [$8,166] 02% 2 0.1% [$651] 0.0%(227 05% [$7,742) 0.2% . s 504 33:7% $0 0% 530 31.9% $0 0% 19A% $0 0% $10.01 -$499 581 38.9% $113,457 42% 625 37.6% $136,347 3.5% 44.8% $500-$999 , 122 8.2% $86,639 32% 140 8.4% $95,340 2.4% 13.7% 156,385 4.1% $ 1 ,000 - $2,499 103 6.9% $161,896 6.0% 135 8.1% $208,802 5.3% 142 1226,245 6.0% $2,500 - $4,799 65 4.3% $225,558 8A% 76 4.6% $279,940 7.1% 65 3.9% $236,140 6.3% ai5D00-$9,999 58 3.9% $423,899 15.7% 75 4.5% $521,270 13.2% 70 42% $521,246 13.7% $10,000-$14.999 25 1.7% $299,602 11.1% 28 1.7% $341,032 0.6% 27 1.65 $343,700 9.1% $15,000-$19.999 7 0.5% $113,909 42% 11 0.7% $100,946 4.0% 14 0.0% $253,060 6.7% $20,OM0-$24,999 8 0.5% $177,151 6.6% 11 0.7% $245,692 6.2% 9 05% $199,770 5.3% $25A00 - $49,999 13 0.9% $466,289 17.3% 15 0.9% $537,474 13.6% 15 0.9% $522,990 13.8% $50,000-$74,999 2 0.1% $136,895 5.1% 8 0.5% $491,192 12.5% 7 OA% $404,381 10.7% $75,000-$99,999 1 0.1% $79,776 3.0% 3 0.2% $280,563 7.1% 7 OA% $600,539 15.8% $100400 - $249,999 3 0.2% $4 18,598 15.5% 4 0.2% $618,58 1 15.7% 1 0.1% $176,240 4.6% ® ®® 78.4% of HSA Members spent < $1,000 in 2020 6 © 2020 ARTHUR J. GALLAGHER & CO. I AJG.COM Paid Distribution of Claims HDHP & PPO Combined JAN 1 8- DEC 18 JAN 19 - DEC 19 CLAIMANTS PAID CLAIMANTS PAID TOTAL PAID & # % $ j % # % $ 1 % ,so 1 7 0.4% ($10,019) 03% 6 0.3% ($19,039) 0.4% P1 $o , 557 32.2% $0 0% 604 31.7% $0 Oho 1 $0.01 -$499 638 36.9% $124,049 33% 679 35.6% $148,188 2.87. I$500-$999 142 8.2% $101,578 2.7% 155 8.1% $105,824 2.0% I$1 J000 - $2,449 , 129 7.5% $203,577 5.5% 160 8.4% $248,929 4.6% $2,500 - $4,999 95 5.5% $329,404 8.9% 103 5.4% $374,864 7.07o $5)000 - $9,999 77 4.5% $553,450 14.9% 92 4.8% $647,608 12.1% $11=0-$14,999 33 1.9% $402,634 10.8% 37 1.9% $459,297 8.6% $1 5D00 - $19,99 9 11 0.6% $105,659 5.0% 17 0.9% $294,403 5.5% $20=0 - $24,999 13 0.8% $287,655 7.7% 14 0.7% $314,313 5.9% $25d000 - $49,499 18 1.0% $642,349 17.3% 19 1.0% $660,203 12.3% $50dD00 - $74,999 4 0.2% $247,065 6.7% 9 0.5% $562,100 10.5% P $75DO®-$99,999 1 0.1% $79,776 2.1% 3 0.2% $280,563 5.2% $100,000-$249,999 4 0.2% $568,080 15.3% 7 0.4% $1,030,599 19.27. $i250400-$49P,999 - - - - 1 0.1% $255,727 4.8% Gallagher Insurance Risk Management 1 Consulting JAN 20 - DEC 20 CLAIMANTS PAID /12 0.7% \ ($8,394) 0.2% 355 19 3% \ $0 0% 782 42.57. 4,1 7n a7� 244 132% $169,149 3.2% 175 % $278,905 5.3% 85 4.67. $309,523 5.9% 84 4.6% $613,614 11.7% 34 I B% $437,003 8.3% 17 0.9% $309,297 5.9% 12 0.7% $269,024 5.1% 21 1.1 % $700,554 13.4% 10 05% $504,336 11.2% 7 OA% $600,539 11.5% 3 027. $524,570 10.0% 1 0.1% $279,704 5.3% 75.7% of all members Members spent < $1,000 in 2020 7 © 2020 ARTHUR J. GALLAGHER & CO. I AJG.COM Medical Renewal — PPO Gallagher Insurance Risk Management I Consulting Gruup Naar City of Fayetteville_ Fayetteville Public Library Age/Crender FaCtOT (Lao C r u u p Number (y) 028723 , 028724 Area Factor Lk" Effective Date 3JIJ2022 Industry Factor LISO Cur rem Renewal 4 6 7 $ I ine. of Business 6C BC B Plan Type PPO PPO PPO (�ruup/Benefil Custom 3.000 PPO Custom 1000 PPO ALT UPTION1 PLm Description PPU C r and fat he r ed Status Nun-Grandfalhered Nun-Crandf3the red N On-G ra ndfat he red In-Nalwork Benefits Ded urtihr- Individual $1, n110 $1,Dnn $1,snn Deductible - Family $2,000 $2,DDO $3,000 Cnln]nrariLe 80.0 80.0% 8D()% I rid ivid WI Cu i rrsur ante M as NIA NIA N/A Family Coinsurance Max N/A N/A N/A I nd ivid ual Tr ue O in Of Po[ke4 $3,000 $7,0n0 $4,.900 Family TrLIC Out CA Pocket $6,000 $6,nnn $anon IIrinary Care Cries Visits Coins after Ded Coins after ucd $40 Specialist Office Visits Coi ns after Ded Cum after Ded $80 Llr ge nt C are C ImiC V isit5 COinsaRer Ded Coins after Ded $80 F me.. rgP. myRoom Visit$ Coins afte..r Ded (Dins. afte..r Ded Coins ,aft er Ded I n patwrit :.r NicM COm4 after Ded COinc after Drd Coins after Ded Out pat r m Snrgir.al Service$ Coins after ped Coins after Ded Coins after Ded wellness Included Yes Yes Yes Out of Network Benefits Deductible hidivilual $1,000 $1,000 $1,500 nedurtihle-Family i),nlln 5z,ono S3,000 (ninsrrranrr 601 60.0% 60.09E I rid ivid a al Coi nsur ance. M ax $4,nnn $anon 5r,,nnn Family coinsurance Max $S,UVU $8,Uut] $12,uou Pharmacy Rx Deductible (Before Co pays Non -I I5A PI3 ris) $0 GP ne. riC $10 $10 $10 Dmterred Rrand $40 $40 $4n Non-Preterred Brand $GO SG9 $GU Specially $15U $15(1 $1S0 DPd net i We Type Fu01IIment Fulfillment Fulfillment Imi N❑ N0 NO Hearin Aid Yes Yes Yes Covers eTier Om lr ees Current Rates Renewal Rates Rates: O tion'I Rates: Option 5 Rates: Option 6 Rates: O tiun 7 Rates:0 tiun 8 Fmpicryee Onty 48 $678214 $719.14 $674.3) $O.nn $n.nn $n.nD Fmpiny" r Spouse 7 $1A79.32 $1,ms.111t $1,470.37 50.00 $0.00 $0.00 Employee Children) 3 $1,221.16 $1,294A2 $1,213.7G $0.00 $D.DO $9.00 Em ilu ee+Spa use *Child Ten 2 013A2 $1,2a41Z $0.00 $0.uu O.W I utal L rnp loyees/ M onthly Pre mium 63 $56,650.2 $6D,049.44 $56,107.25 $0.00 $D.Du $9.UU Ann uaI Pre mium $679,811-720,593.24 $ $515,686.98 $0.00 $0.00 $0.nll © 2020 ARTHUR J. GALLAGHER & CO. I AJG.COM Medical Renewal - HDHP Gallagher Insurance Risk Management I Consulting C nµp Name City of Fa Vattevil le_Fayettevi a Pu b lic Li b nary Age -,der Fa 0.869 &-4, Nun6cr[s] 028725 • 02872A Are Foote 1.059 Fff"n- Date 1f 1f 2 o22 I nduntry Factor 1. 1so cumin Renewal .1 2 - - 7 - Line Of RtAi r*. 8 BC la Nan Type STANDRRD HSA STANDAfia MASTANDAP.D F6"L Crnr 4lenehF 00 BC30.1D0_HDHP_E C =M&100 HDFP F RC 2A0CFR0 HnHP F PlanOesorl 'OR BC 2BC)aBD I iDI P E Grandathered Status No.rGrardtadh red NorrGrandathered Na Grardtadwed In-Netvmrk 15—ribs Deducahle - Inr -A'al s'vM umo ,p pm Deducahle -Famiy SFom A000 S,-, F, ] Crinsur_ IONIC% AMC& WUN Individual Colnslrance Max WA WA M1Y ramfly Careurance Mac WA WA W rndviduA Ifye Out OFF [Xket $SOW Alien $}bD0 Famdy True Out OF Pocke r Aorx7 A000 5A1,7[X] Fammary Care O ire M" C irn afrar ned Wir4 after ned Cni re, after ned rpeciallst Oftl ce N sets Calre at�f Ded Wlrs alter Ded GOlm atte Ded Lrgent Care Olnl c 4lsl t3 Gains attef Ded Co:after Ded Calns otter Ded Emergency Room Nsl is Co,m attef Ded Cabs alter Ded Colre atte Ded hr{ruhcvd Scrvi W-uFlxv Ded Colt. af4r Uud Caren uFlx•r Dcd Orapanenr Slurp r l Serwras C., after ned Wire, after Ded (-Iern after ned WellnexInd rxied Yes Yes Yes Out of Network Bmelhs UeduW hie-hrdividuul $CaOW $6,ow $k6400 Deducahle-Famly $12,000 $1M000 $ifa W C'omwr _ mcm W.[L5 bLU9i rndrldukd Coin;v met NA. SIZQW S3,2001) $1ta8W FamAy(mre,uran- Ntar SA000 S7'l,t]FA 5 600 Pha"I Rx ❑educable {Before Copays NorrI IS4 Plenq W Generic Cans after Ded Colns alter Ded Care after Ded Pr •!e—i•duiand Calm after Oed Colrr; after Ut•d (oim Jw: ued Non f§c•Fened 8rund Calm after Ded colrc;Atcr Ut•d Care uFlx•r Ucd $penalty Corral after pod Cobs after ned Corral Afr.r ned Deduuble type Embedded Embedded Embedded TMI NO No No Heap Nd Np N6 W mven Tler Ern Cur re nL Hu li•s Reruwul Mt— Rule•:: ❑ 11on 1 Hu li••:: np bona R'J" 00M.. Hull•.: U hon S R.h,' Opti..b Huk•s: U tion I Rur— Opw, 8 Ernployc•u r]nly -3 $371g3 S-314.1b $3'2Eig3 lu. LU 91L :i).W $0. $ow g1. rX] Employee+Spouse l0.` 570L 7R $R0[ 90 57[li Xl SC1.CA 90- SC1 x Sa psis Employee+Chlld[re n] b r,,57E.643 `G112B `,534.20 �.(b $D. r,,b. DO $D. $0.00 �.W Employee+S use+Children `10ea 5 130.1B �90.30 50.00 $D. r,,b. DO 9000 `MOO %00 Total Employees l Monthy Premium 7 WA711. , 50319RS1 $4474E.01 r%00 % `,,b.00 Aw $0 $B. Pnr—1 Remlum $5•b98r$A 3 S&0A316. 97 yS,2lE1972D1 SOW 71 eu.to Sam 00 W 9J.W SAW © 2020 ARTHUR J. GALLAGHER & CO. I AJG.COM Medical Rate Comparison Overall Comparison of 6% Renewal of Current Health Plans W Proposed Plan Design BCBS 6% Renewal of Current Ha HP Plan BCBS Proposed HDHP Plan De Sign Rate Tier ZDZ1 HD Hp Monthly Rates HDHP.. MA #of em ID es Monthly Premium cast to COF EE with renewal Monthly Premium Cost tD City wf Renewal parEE Tote l Annua l Cost to Employees with WA renewal Total Annual Coat to COF Proposed HDHP #of -ply- Monthly Premium cDst to COF EE Monthly Premium Cast to C'y Total Annual Coct to EE w Pro Dsed Total Annual tact to COF wf Pop -ad Employee Only $352.9C $374.16 3D4 $52.6a $321.56 $141,BB4.SD Si}73,O51).88 $326.46 304 545.96 $2E1.02 $167,66Z.a!! $1,025,160.96 Em to a+5 Dose $761.28 $806.96 iD5 $120.08 $686.86 $1513ao.86 $efi5466.80 $7O5.20 105 $i0d.92 $600.28 $132194.20 $756352.E0 Em to e + C1rld ran $576.68 $61116 fil $90.gtil $520.32 $66 562.72 $380 874.24 $534.20 fii "AS S454.72 $56 179.3fi $332 E55.04 Family $1,G64.Ob $1,133.19 236 $168.621 $964.561 $477,531.941 $2,731,653.92 OW.30 236 $14796 $842.94 $417,323,52 $2387,2a5.64 Total Employees 706 $897,300.161 $5,15L67.84 706 $775,364.16 $4,501,574.88 otal Suhstri bens (EE + Dependents 16601 1 1 166D BCBS 69'D Renewal of Current PPO Plan BCBS Proposed PPO Plan Design Rate Tier ZD21 PPO Monthly Rates PPO wf 6u Rene,raI #of employees Monthly Premium cast to €OF EE with wa rc l n Monthly Premium Cost tD City .1 Renewal per EE Total Annual Cost to Employees with 6% rxnewel Total Annual Cost to COF P-p-ad PPO #of -ploy- Monthly Premium oost to COF EE Monthly Premium Cost to City Total Annual Cost to EE w Proposed Total Annual Cost to COF wf Proposed Em to a Only$676.CG $719.14 48 � 183.30 $535. 94 $1B5 5B0.8D $30B 643.84 $674.34 46 iM.E8 $ 502.46 $94 00Z.88 $299 416.96 Em 1. a+5 ❑use $i,d79.32 S1,5mm 7 "591.9d $976.14 s49722.96 $91995.76 $1,A7a36 7 $555.06 $915.30 $46625.04 S715,995.20 Em 1. e + Childl-1 $1,221.16 SL294-4ZI 31 5488.641 SSDS.7BI $17,591.041 $24 008.08 SLZ13-761 3 $458.18 $755.581 $16 444.48 1 $27 300.8E Fa mi I $2,013.42 52,13422 151 E05.66 $1,321t.56 146 339.60 574 713.60 $Z,OOLZ4 5 $755.46 SL245.781 545 27.6fl $74 746.E0 otal Employees 63 $221.234.401 $499,361.29 63 1 $207,450.00 5468,249.84 otal Substribcrs(EE +DI Indents 921 1 1 1 92. Total Celt to Employces w 6% R--1 Plans $1,108,534.56 Total CDA to Employcec with Proposed Plan^. $982,814.16 Total Celt to COF wf 5% Renewal Plans $5,554,384.12 Total Celt to COF with Proposed Plans $4,969,824.72 © 2020 ARTHUR J. r-5,1_LP:GHER Council Member Benefits Fayetteville City Code § 31.16 Current Benefits Offered Health Insurance — (BCBS) Health Savings Account Flexible Spending Account Accidental Death & Dismemberment — (AML) Supplemental Products (American Fidelity): • Disability Insurance • Whole Life Insurance • Term Life Insurance • Texas Life Insurance • Hospital Gap Insurance • Cancer Insurance • Accident Insurance • Group Critical Illness Potential Offerings (2022) • Dental Insurance — (Delta) • Vision Insurance — (Superior Vision) • Life Insurance Flat Rate of either $5K, $1 OK or $15K - (One America) Thank You! G-) Gallagher Insurance Risk Management I Consulting © 2020 ARTHUR J. GALLAGHER & CO. I AJG.COM