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171-23 RESOLUTION
113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 171-23 File Number: 2023-904 2024 ANNUAL BENEFITS RENEWAL: A RESOLUTION TO APPROVE THE 2024 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 2024 employee benefits package as recommended in the staff memorandum attached to this Resolution. PASSED and APPROVED on August 1, 2023 Page 1 Attest: v • Kara Paxton, City Cl Treasurer _j�,. FAYE77`V;`(f CITY OF FAYETTEVILLE ARKANSAS MEETING OF AUGUST 1, 2023 TO: Mayor Jordan and City Council THRU: Susan Norton, Chief of Staff FROM: Missy Cole, Human Resources Director DATE: SUBJECT: 2024 Employee Benefits Renewal RECOMMENDATION: CITY COUNCIL MEMO 2023-904 Staff recommends City Council approve the employee benefits renewal package for 2024 as outlined below and in the attached presentation. BACKGROUND: Staff and Brown & Brown, 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 118.30% utilization rate of claims paid versus premiums paid. Under the City's current renewal rate guarantee with Arkansas Blue Cross Blue Shield (AR BCBS), the utilization rate would result in a 19.8% premium increase for 2024 for the City's medical plans. In negotiations with BCBS, the City was able to reduce the premium increase to 3.8% for the High Deductible Health Plan (HDHP) and 6.0% for the PPO Plan if the City will move the Dental Plan, City -paid Basic Life/AD&D, Voluntary Life/AD&D and City paid Long Term Disability. The IRS increased the HDHP minimum deductible limits for 2024; resulting in an increase to the HDHP deductible of $200 (individual) and $400 (family). The IRS also increased the allowable contribution amount for a Health Savings Account (HSA). HSA annual contribution maximums for an individual will be $4,150 (up from $3,850) and $8,300 for a family (up from $7,750). The City of Fayetteville will increase their annual contributions for employees' HSAs by $200 (individual) and $400 (family). Employee Paid Dental Insurance The one-year look back period shows the loss ratio for the City's dental claims at 84.77%, with a premium renewal increase in the amount of 4.91 % with Delta Dental (current vendor). AR BCBS dental rates were slightly higher at a 5.2% increase; however, the packaging of AR BCBS products mentioned under Health Insurance above results in an overall premium savings of 16% for the HDHP and 13.80% savings for the PPO plan therefore staff recommends moving the dental plan to AR BCBS with the same plan design and a rate locked in for two years. Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 Employee Paid Vision Insurance Staff recommends staying with VSP through AR BCBS with current plan designs and rates. Rates are part of a three-year rate guarantee which began in 2023. City Paid Life/AD&D, Voluntary Life/AD&D and LTD Benefits Staff recommends moving these products to USAble through AR BCBS from One America as part of a package of services that will lessen the premium increase of the health insurance as stated above. Products and rates are comparable. Voluntary Employee Paid Benefits Staff recommends renewal with OneAmerica for Short Term Disability. 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 Saving Accounts with no cost for services. City of Fayetteville will increase the amounts contributed to employee HSA accounts for 2024. HSA annual contributions will equal $1,050 (EE), $1,480.08 (EE + Spouse), $1,890 (EE + Children), and $2,280 (Family coverage). COBRA Administration Staff recommends Consolidated Admin Services (CAS) continue as the administrator of COBRA services. 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, AF Permanent Life Insurance, Hospital Gap Insurance and Short Term Disability Insurance. BUDGET/STAFF IMPACT: The costs of these planned insurance/benefit items are being budgeted in the City's 2024 budget. ATTACHMENTS: Staff Review Form - Benefits 2024, BB Presentation -Council, Revised BB Presentation - Council Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 _= City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 - Legislation Text File #: 2023-904 2024 Employee Benefits Renewal A RESOLUTION TO APPROVE THE 2024 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 2024 employee benefits package as recommended in the staff memorandum attached to this Resolution. Page 1 Missy Cole Submitted By City of Fayetteville Staff Review Form 2023-904 Item ID 8/1/2023 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 6/30/2023 HUMAN RESOURCES (120) Submitted Date Division / Department Action Recommendation: Staff recommends City Council approve the 2024 employee benefits renewal package as proposed in the staff memo. Citywide Account Number Project Number Budgeted Item? Yes Does item have a direct cost? No Is a Budget Adjustment attached? No Purchase Order Number: Change Order Number: Original Contract Number: Comments: Budget Impact: Total Amended Budget Expenses (Actual+Encum) Available Budget Item Cost Budget Adjustment Remaining Budget Citywide Fund Project Title $ 7,923,241.00 $ 3,471,279.74 a 4,451,961.26 Previous Ordinance or Resolution # Approval Date: 4,451,961.26 V20221130 �iBrown & BrowA. Renewal Analysis and Process July 2023 CITY OF FAYETTEVILLE ARKANSAS Overview Medical-BCBS • Original Renewal 19.8% • Packaged with Dental, Life, Disability • 2021 CY Loss Ratio is 131 % • 2022 CY Loss Ratio is 111.3% • 2023 YTD Through 5/2023 = 76.8% Vision-BCBS VSP • Second year of two-year rate guarantee Dental -Delta Dental • Move to USAble/BCBS for significant medical savings • Two-year rate guarantee Base Life & LTD -One America • Move to USAble for significant medical savings • Two-year rate guarantee Brown & Brown INSURANCE' EMPLOYEE BENEFITS FSA-American Fidelity • Continue with administrator HSA-First Security Bank • Continue with current administrator Cobra -CAS • Continue with current administer Voluntary Life Benefits -One America • Move to USAble for significant medical savings • Two-year rate guarantee Voluntary Benefits -American Fidelity • Renew with no changes 13 BROWN & BROWN 1 2 Historical Lookback 2016 6.4% 2017 5.6% 2018 20% 2019 15% 2020 0% 2021 6% 2022 16.8% 2023 16.8% 2024 4.9% Brown & Brown INSURANCE' EMPLOYEE BENEFITS Experience Period Total Claim Premium Paid Loss Ratio 5/1/15 - 4/30/16 $4,322,202 5/1/16 - 4/20/17 $4,576,036 5/1/17 - 4/30/18 $4,713,036 5/1/18 - 4/30/19 $41831,586 5/1/19 - 4/30/20 $5,455,647 5/1/20 - 4/20/21 $5,7191772 5/1/21- 4/30/22 $7,289,359 5/1/22 - 4/30/23 $6,897,808 Totals $43,?805,p446 $412161666 102.5 $415131431 101.4% $419131154 95.3% $5,757,503 83.9% $6,274,795 86.9% $6,270,906 91.2% $6,2481761 116.7% $6,084,374 113.3% $44,279,590 98.9 BROWN & BROWN 1 3 Dual Medical Benefit Comparison Eligibility Definition Annual Individual / Family Deductible Deductible Type Coinsurance Annual Out -of -Pocket Maximum Out -of -Network Coinsurance Preventive Benefit Office Visits - Primary Care Office Visits - Specialist Hospital Services In -Patient Hospital Services Out -Patient Outpatient Diagnostic X-Ray & Lab Services Major Lab - MRI, PET Scan, CAT Scan Emergency Room Facility Charge Urgent Care Visit (excludes certain diagnostic procedures) RX - Tier I / Tier 2/Tier 3 RX - Specialty RX Mail Order - 90 Day Supply In -Network In -Network All Actively at Work Full Time Employees All Actively at Work Full Time Employees $1,000 / $2,000 $3,000 / $6,000 Fulfillment Embedded 80% 100% $3,000 / $6,000 $3,000 / $6,000 60% 0% No Charge if In -Network No Charge if In -Network Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance $10 / $40 / $60 Deductible & Coinsurance $150 Deductible & Coinsurance 2 copays for 90 day supply Available ®Brown & Brown INSURANCE' EMPLOYEE BENEFITS In -Network In -Network All Actively at Work Full Time Employees All Actively at Work Full Time Employees $1,000 / $2,000 $3,200 / $6,400 Fulfillment Embedded 80% 100% $3,000 / $6,000 $3,200 / $6,400 60% 0% No Charge if In -Network No Charge if In -Network Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance $10 / $40 / $60 Deductible & Coinsurance $150 Deductible & Coinsurance 2 copays for 90 day supply Available BROWN & BROWN 1 4 Medical Rate Comparison HEALTH PLAN MONTHLY COSTS 2023 VS 2024 *The renewal rates and enrolled numbers include FPL Total $126,964.68 $38,474.40 Yo Change 19.8% 6.0% *The renewal rates and enrolled numbers include FPL Total $1,381,007.40 $262,093.20 Yo Change 19.8% 3.8% dotal $7,616,022.24 $9,123,994.32 $7,916,589.84 Change from Current Premium $1,507,972.08 $300,567.60 Value of Moving Dental, LTD, Base Life and GVL-$1,207,404.48 Brown & Brown INSURANCE' EMPLOYEE BENEFITS 13 BROWN & BROWN 1 5 HDHP/HSA IRS 2024 The IRS made changes to both HDHP deductibles and HSA contribution limits. • HDHP deductibles will be increasing to: • $3,200 from $3,000 for an individual • $6,400 from $6,000 for family • HSA contribution limits will be increasing to: • $4,150 from $3,850 for an individual • $8,300 from $7,750 for family 13 BROWN & BROWN 1 6 HSA Contributions for HDHP Plan 2024 HSA Engagement Contributions City's City's Employee's Current IRS Contribution City's . . . . . .n MaximumAnnual MaxAnnual PlanTier (perpayroll) (per month) (annual) Contribution* Contribution EE $43.75 $87.50 $1,,050.00 $3,,100.00 $4,.150.00 ES $61.67 $123.34 $11480.08 $61819.92 $8,300.00 EC $78.75 $157.50 $1;890.00 $6;410.00 $8,300.00 Family $95.00 $190.00 $2.,280.00 $6;020.00 $8,300.00 Brown & Brown INSURANCE' EMPLOYEE BENEFITS 2023 vs. 2024 HSA Engagement Contributions Contribution .. %Increase Plan Tier Census (Annual) (annual) 2023 Impact 2024 1 rn pact Increase Impact E E 273 $849.60 $1, 050.00 $231, 941.00 $2861650.00 $54, 709.00 23.6% ES 84 $1,279.92 $1,480.08 $107,514.00 $124,327.00 $16,813.00 15.6% EC 71 $1, 590. 00 $1, 890. 00 $112, 890. 00 $1341190. 00 $ 21, 300. 00 18. 9 Fam , , 280.0 $391,024.00 $474240.00 , $83, 216.00 21 .3 BROWN & BROWN 1 7 Single Dental Benefit Comparison Eligibility Definition Individual / Family Deductible Annual Benefit Maximum Carry -Over Benefit Coverage Waiting Periods Out of Network Reimbursement / MPA Preventive & Diagnostic Care Benefit Preventive & Diagnostic Services Basic Care Benefit Major Care Benefit Endodontics Periodontics - Surgical Periodontics - Non -Surgical .................................... Orthodontia Benefit Orthodontia Eligibility Dependent Children / Full time student up to age Rate Guarantee Participation Requirement In -Network All Actively at Work Full Time Employees $50 / $150 $1,500 $375 benefit/ $749 threshold / $1,500 max benefit Late Entrants Only 90% / 72 % / 45 100% Exams, Cleanings, Fluoride, X-Rays, Sealants 80% after deductible 50% after deductible 80% after deductible 50% after deductible 50% after deductible ........................ 50% - $1,000 (lifetime max) ........................................................................................................................................... Dependent Children to Age 19 ............................................................................. Up to Age 26 35% Ld In -Network rffAll Actively at Work Full Time Employees $50 / $150 $1,500 $375 benefit/ $749 threshold / $1,500 max benefit Late Entrants Only 90% / 72% / 45% 100% Exams, Cleanings, Fluoride, X-Rays, Sealants 80% after deductible 50% after deductible 80% after deductible 50% after deductible 50% after deductible ............. 50% - $1,000 (lifetime max) ........................................................................................ ............................... Dependent Children to Age 19 ..................................................................................... Up to Age 26 I year 35% Brown & Brown INSURANCE' EMPLOYEE BENEFITS In -Network IM�Allctively at Worl< Full Time Employees $50 / $150 $1,500 $375 benefit/ $749 threshold / $1,500 max benefit Late Entrants Only 90% / 70% / 40% 100% ................ Exams, Cleanings, Fluoride, X-Rays, Sealants 80% after deductible 50% after deductible 80% after deductible 50% after deductible 50% after deductible 50% - $1,500 (lifetime max) ................................................... . ........................................................................... Dependent Children to Age 19 ................................. Up to Age 26 2 year 20% ff BROWN & BROWN 1 8 Dual Vision Benefit Comparison Eligibility Definition Frequency of Service - ExamlLenses/Frames Eye Exam Single Vision Lenses Bifocal Lenses Trifocal Lenses Frames .............. !�=............ Contact Lenses Exam - Standard Contact Lenses Exam - Specialty Contact Lenses - Elective (conventional or disposable) In Lieu of Frames & Lenses Contact Lenses - Medically Necessary Lasik Dependent Children / Full time student up to age �.......................... Rate Guarantee Participation Requirement rIn -Network Acfively at Work Full Time Employees 12 / 12 / 12 $10 Copay $10 Copay $10 Copay $10 Copay $10 Copay then $150 retail allowance 20-25% off contact lense exam $150 retail allowance ...................................................................................... - $10 Copay Average discount is 15% off retail prici Up to Age 26 1 Year 35% Counts Tier Premium EE Cost 126 EE Only $7.72 58 EE + Spouse $15.40 $15.40 19 EE + Child(ren) $16.48 $16.48 77 :EE + Fam $26.34 $26.34 In -Network All Actively at Work Full Time Employees 12 / 12 / 12 $10 Copay $10 Copay $10 Copay $10 Copay $10 Copay then $150 retail allowance 20-25% off contact lense exam $150 retail allowance ..................................... -...................................... $10 Copay Average discount is 15% off retail pricin Up to Age 26 1 Year 35% IRV Counts Tier Premium EE Cost 126 `EE Only $7.72 $7.72 58 EE + Spouse $15.40 $15.40 19 EE + Child(ren) $16.48 $16.48 77 EE + Fam $26.34 $26.34 In -Network 1 All Actively at Work Full Time Employees 12 / 12 / 24 $10 Copay $10 Copay $10 Copay $10 Copay $15 Copay then $130 retail allowance 20-25% off contact lense exam $130 retail allowance ..................... $15 Copay Average discount is 15% off retail pricing Up to Age 26 1Year 35% Counts Tier Premium EE Cost 117 1EE Only $6.00 $6.00 51 EE + Spouse $11.96 $11.96 26 EE + Child(ren) $12.80 $12.80 65 EE + Fam $20.46 $20.46 Brown & Brown INSURANCE' EMPLOYEE BENEFITS All MIn -Network Acfively at Work Full Time Employees 12 / 12 / 24 $10 Copay $10 Copay $10 Copay $10 Copay $15 Copay then $130 retail allowance 20-25% off contact lense exam $130 retail allowance ............................................... $15 Copay Average discount is 15% off retail pricing Up to Age 26 1 Year 35% BROWN & BROWN 1 9 Base Life & AD&D Annualized Premium Class I: All Eligible Full -Time Employees Excluding Police and Fire Class 2 All Eligible Full Time Police and Fire Emplyees CLASS I Life and AD&D is 1.50X employee's annual base salary up to $175,000 maximum. CLASS 2 Life is 1.5 X employee's annual base salary up to $175,000 maximum / AD&D is 3X employee's annual base salary up to $350,00 maximum. CLASS 3 Flat amount of $15,000 Class I: All Eligible Full -Time Employees Excluding Police and Fire Class 2 All Eligible Full Time Police and Fire Emplyees ........................................................................................................................................................................................ . CLASS I Life and AD&D is 1.50X employee's annual base salary up to $175,000 maximum. CLASS 2 Life is 1.5 X employee's annual base salary up to $175,000 maximum / AD&D is 3X employee's annual base salary up to $350,00 maximum. CLASS 3 Flat amount of $15,000 Description Rate Description 06Rate otal Volume $71,528,550 Total Volume $71,528,550 .............................................................................................................................................................:.............................................................................................................................................................................;................._______________ fe Rate per $1,000 of Benefit $0.160 Life Rate per $1,000 of Benefit $0.130 D&D Rate per $1,000 of Benefit $0.030 ND&D Rate per $1,000 of Benefit $0.030 - BROWN & BROWN 1 10 Long Term Disability Benefit Comparison Eligibility Definition Monthly Benefit Maximum Elimination Period Benefit Duration Occupation Period Basic Monthly Earnings Definition Mental Illness/Substance Abuse Limitation Rate Guarantee Cost Comparison Annual Dollar Change From Current Percent Change From Current Description All Actively at Work Full Time Employees 60% of monthly payroll up to $6,000 maximum 180 days SSNRA 2 Year ..................................................................................................................... Base Wage ................ 24 Months Lifetime Accumulation Benefit I Yea r Rates Table Description Rate Monthly Covered Payroll $4,413,788 Rate per $100 of Payroll $0.330 Description All Actively at Work Full Time Employees 760% om f monthly payroll up to $6,000 maximum 180 days SSNRA 2 Year �........................... ......................................................... Base Wage 24 Months Lifetime Accumulation Benefit 2 Year Rates Table Description Rate Monthly Covered Payroll $4,413,788 Rate per $100 of Payroll $0.330 11 $0.00 0% BROWN & BROWN 1 11 Voluntary Life Description All Actively at Work Full Time Employees $10,000 to $500,000 not to exceed 5X employee's annual salary $250,000 Under age 70: $10,000 to $500,000 not to exceed 100% of employee's amount $50,000 $10,000 $10,000 Age 75 reduces 60% / Age 80 reduces 35% / Age 85 reduces 28% / Age 90 reduces 20% / Age 98 reduces 8% I Year SAble Matched Current Rates Description All Actively at Work Full Time Employees $10,000 to $500,000 not to exceed 5X employee's annual salary $250,000 100% of Approved Employee Life Benefit Not to Exceed $500,000 $50,000 $10,000 / Infant Benefit $1,000 for live birth to 6 months $10,000 Age 75 reduces 40% / Age 80 reduces 72% / Age 85 reduces 80% / Age 90 reduces 92% / 2 Year 13 BROWN & BROWN 1 12 THANK YOU1. Any solicitation or invitation to discuss insurance sales or servicing is being provided at the request of O � � � r O w n Brown &Brown of Arkansas, Inc., an owned subsidiary of Brown &Brown, Inc. Brown &Brown of Arkansas, Inc., only provides insurance related solicitations or services to insureds or insured risks in jurisdictions where it and its individual insurance professionals are properly licensed. © 2023 Brown & Brown. All rights reserved. Received By: Missy Cole 07/11/2023 5.53 �iBrown & BrowA. Renewal Analysis and Process July 2023 CITY OF FAYETTEVILLE ARKANSAS Overview Medical-BCBS • Original Renewal 19.8% • Packaged with Dental, Life, Disability • 2021 CY Loss Ratio is 131 % • 2022 CY Loss Ratio is 111.3% • 2023 YTD Through 5/2023 = 76.8% Vision-BCBS VSP • Second year of two-year rate guarantee Dental -Delta Dental • Move to USAble/BCBS for significant medical savings • Two-year rate guarantee Base Life & LTD -One America • Move to USAble for significant medical savings • Two-year rate guarantee Brown & Brown INSURANCE' EMPLOYEE BENEFITS FSA-American Fidelity • Continue with administrator HSA-First Security Bank • Continue with current administrator Cobra -CAS • Continue with current administer Voluntary Life Benefits -One America • Move to USAble for significant medical savings • Two-year rate guarantee Voluntary Benefits -American Fidelity • Renew with no changes 13 BROWN & BROWN 1 2 Historical Lookback 2016 6.4% 2017 5.6% 2018 20% Brown & Brown INSURANCE' EMPLOYEE BENEFITS Experience Period Total Claim Premium Paid Loss Ratio 2019 15% 5/1/15 - 4/30/16 $4,322,202 2020 0% 5/1/16 - 4/20/17 $4,576,036 2021 6% 5/1/17 - 4/30/18 $4,713,036 2022 16.8% 5/1/18 - 4/30/19 $4,8311586 2023 16.8% 5/1/19 - 4/30/20 $5,455,647 2024 4.9% 5/1/20 - 4/20/21 $5,719,772 5/1/21- 4/30/22 $7,1289,1359 5/1/22 - 4/30/23 $618971808 Totals $43,805,1446 $412161666 102.5% $4,513,431 101.4% $4,913,154 95.3% $51757,9503 83.9% $612741795 86.9% $6,270,906 91.2% $61248,761 116.7% $610841374 113.3% $44,279,590 98.9% BROWN & BROWN 1 3 Dual Medical Benefit Comparison Eligibility Definition Annual Individual / Family Deductible Deductible Type Coinsurance Annual Out -of -Pocket Maximum Out -of -Network Coinsurance Preventive Benefit Office Visits - Primary Care Office Visits - Specialist Hospital Services In -Patient Hospital Services Out -Patient Outpatient Diagnostic X-Ray & Lab Services Major Lab - MRI, PET Scan, CAT Scan Emergency Room Facility Charge Urgent Care Visit (excludes certain diagnostic procedures) RX - Tier I / Tier 2 / Tier 3 RX - Specialty RX Mail Order - 90 Day Supply In -Network In -Network All Actively at Work Full Time Employees All Actively at Work Full Time Employees $1,000 / $2,000 $3,000 / $6,000 Fulfillment Embedded 80% 100% $3,000 / $6,000 $3,000 / $6,000 60% 0% No Charge if In -Network No Charge if In -Network Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance $10 / $40 / $60 Deductible & Coinsurance $150 Deductible & Coinsurance 2 copays for 90 day supply Available Brown & Brown INSURANCE' EMPLOYEE BENEFITS In -Network In -Network All Actively at Work Full Time Employees All Actively at Work Full Time Employees $1,000 / $2,000 $3,200 / $6,400 Fulfillment Embedded 80% 100% $3,000 / $6,000 $3,200 / $6,400 60% 0% No Charge if In -Network No Charge if In -Network Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance $10 / $40 / $60 Deductible & Coinsurance $150 Deductible & Coinsurance 2 copays for 90 day supply Available 0 BROWN & BROWN 1 4 Medical Rate Comparison HEALTH PLAN MONTHLY COSTS 2023 VS 2024 *The renewal rates and enrolled numbers include FPL Total $126,964.68 $38,474.40 Change 19.8% 6.0% *The renewal rates and enrolled numbers include FPL Total $1,381,007.40 $262,093.20 Change 19.8% 3.8% Total $7,616,022.24 $9,123,994.32 $7,916,589.84 Change from Current Premium $1,507,972.08 $300,567.60 Value of Moving Dental, LTD, Base Life and GVL-$1,207,404.48 Brown & Brown INSURANCE' EMPLOYEE BENEFITS a BROWN & BROWN 1 5 HDHP/HSA IRS 2024 The IRS made changes to both HDHP deductibles and HSA contribution limits. • HDHP deductibles will be increasing to: • $3,200 from $3,000 for an individual • $6,400 from $6,000 for family • HSA contribution limits will be increasing to: • $4,150 from $3,850 for an individual • $8,300 from $7,750 for family 13 BROWN & BROWN 1 6 HSA Contributions for HDHP Plan 2024 HSA Engagement Contributions City's City's Employee's Current IRS Contribution City's . . . . . .n MaximumAnnual MaxAnnual PlanTier (perpayroll) (per month) (annual) Contribution* Contribution EE $43.75 $87.50 $1,050.00 $3,.100.00 $4,.150.00 ES $61.67 $123.34 $11480.08 $61819.92 $8,300.00 EC $78.75 $157.50 $1,,890.00 $6,.410.00 $8,300.00 Family $95.00 $190.00 $2,280.00 $6,,020.00 $8,300.00 Brown & Brown INSURANCE' EMPLOYEE BENEFITS 2023 vs. 2024 HSA Engagement Contributions Contribution .. %Increase Plan Tier Census (Annual) (annual) 2023 1 m pact 2024 1 m pact Increase Impact E E 273 $849. 60 $1, 050. 00 $231, 941. 00 $2861650. 00 $541709. 00 23. 6% ES 84 $1,279.92 $1,480.08 $107,514.00 $1241327.00 $16,813.00 15.6% EC 71 $1, 590. 00 $1, 890. 00 $112, 890. 00 $1341190. 00 $ 21, 300. 00 18. 9% Family 208 $11879.92 1 $2, 280.00 $391, 024.00 $474, 240.00 1 $83, 216.00 21.3% a BROWN & BROWN 1 7 Single Dental Benefit Comparison Eligibility Definition Individual / Family Deductible Annual Benefit Maximum Carry -Over Benefit Coverage Waiting Periods Out of Network Reimbursement / MPA Preventive & Diagnostic Care Benefit .. .............................................. Preventive & Diagnostic Services Basic Care Benefit Major Care Benefit .......... Endodontics Periodontics - Surgical Periodontics - Non -Surgical Orthodontia Benefit Orthodontia Eligibility Dependent Children / Full time student up to age Rate Guarantee Participation Requirement In -Network In -Network All Actively at Work Full Time Employees All Actively at Work Full Time Employees $50 / $150 $.50 / $150 $1,500 $1,500 $375 benefit/ $749 threshold / $1,500 max benefit $375 benefit/ $749 threshold / $1,500 max benefit Late Entrants Only Late Entrants Only 90% / 72% / 45% 90% / 72% / 45% 100% 100% Exams, Cleanings, Fluoride, X-Rays, Sealants Exams, Cleanings, Fluoride, X-Rays, Sealants 80% after deductible 80% after deductible 50% after deductible 50% after deductible 80% after deductible 80% after deductible .. ................. 50% after deductible ........................ 50% after deductible 50% after deductible 50% after deductible 50% - $1,000 (lifetime max) 50% - $1,000 (lifetime max) Dependent Children to Age 19 Dependent Children to Age 19 Up to Age 26 Up to Age 26 I year 35% 35% Counts Tier Premium EE Cost 357 EE Only $30.15 $30.15 129 EE + Spouse $60.25 $60.25 64 EE + Child(ren) $69.35 $69.35 204 EE + Fam $107.55 $107.55 Brown & Brown INSURANCE' EMPLOYEE BENEFITS In -Network 7AIIctively at Worl< Full Time Employees $50 / $150 $1,500 $375 benefit/ $749 threshold / $1,500 max benefit Late Entrants Only 90% / 70% / 40% 100% Exams, Cleanings, Fluoride, X-Rays, Sealants 80% after deductible 50% after deductible 80% after deductible 50% after deductible 50% after deductible 50% - $1,500 (lifetime max) Dependent Children to Age 19 Up to Age 26 2 year 20% Countsi Tier Premium 357 jEE Only $30.22 $30.22 129 EE + Spouse $60.44 $60.44 64 EE + Child(ren) $69.52 $69.52 204 EE + Fam $107.80 $107.80 BROWN & BROWN 1 8 Dual Vision Benefit Comparison Eligibility Definition Frequency of Service - Exam/Lenses/Frames Eye Exam Single Vision Lenses Bifocal Lenses Trifocal Lenses Frames Contact Lenses Exam - Standard Contact Lenses Exam - Specialty Contact Lenses - Elective (conventional or disposable) In Lieu of Frames & Lenses ................................................................................................................................... .................................................................................................................................... Contact Lenses - Medically Necessary Lasik ................... Dependent Children I Full time student up to age Rate Guarantee Participation Requirement In -Network ." All Actively at Work Full Time Employ 12 / 12 / 12 $10 Copay $10 Copay $10 Copay $10 Copay $10 Copay then $150 retail allowance 20-25% off contact lense exam $150 retail allowance In -Network es All Actively at Work Full Time Employ 12 / 12 / 12 $10 Copay $10 Copay $10 Copay $10 Copay $10 Copay then $150 retail allowance $10 Copay Average discount is 15% off retail pricing Up to Age 26 1 Year 35% 20-25% off contact lense exam $150 retail allowance In -Network es All Actively at Work Full Time Employ 12 / 12 / 24 $10 Copay $10 Copay $10 Copay $10 Copay $15 Copay then $130 retail allowance $10 Copay Average discount is 15% off retail pricing Up to Age 26 1Year 35% Coun7EE ier Premium EE Cost 126nly $7.72 $7.72 58Spouse $15.40 $15.40 19 JEE + Child(ren) $16.48 $16.48 77 1 EE + Fam $26.34 $26.34 20-25% off contact lense exam $130 retail allowance Brown & Brown INSURANCE' EMPLOYEE BENEFITS In -Network es All Actively at Work Full Time Employ 12 / 12 / 24 $10 Copay $10 Copay $10 Copay $10 Copay $15 Copay then $130 retail allowance $15 Copay Average discount is 15% off retail pricing Up to Age 26 1Year 35% 20-25% off contact lense exam $130 retail allowance s $15 Copay Average discount is 15% off retail pricing Up to Age 26 1 Year 35% BROWN & BROWN 1 9 Base Life & AD&D Class I: All Eligible Full -Time Employees Excluding Police and Fire Class 2 All Eligible Full Time Police and Fire Emplyees CLASS I Life and AD&D is 1.50X employee's annual base salary up to $175,000 maximum. CLASS 2 Life is 1.5 X employee's annual base salary up to $175,000 maximum / AD&D is 3X employee's annual base salary up to $350,00 maximum. CLASS 3 Flat amount of $15,000 111106 Description Rate Total Volume $71,528,550 ...............................................................................................................................................................:....................................................... -ife Rate per $1,000 of Benefit $0.160 ...............................................................................................................................................................:....................................................... 4D&D Rate per $1,000 of Benefit $0.030 Annualized Premium Class I: All Eligible Full -Time Employees Excluding Police and Fire Class 2 All Eligible Full Time Police and Fire Emplyees ........................................................................................................................................................................................ . CLASS I Life and AD&D is 1.50X employee's annual base salary up to $175,000 maximum. CLASS 2 Life is 1.5 X employee's annual base salary up to $175,000 maximum / AD&D is 3X employee's annual base salary up to $350,00 maximum. CLASS 3 Flat amount of $15,000 Description IL Rate Total Volume $71,528,550 ....................................................................................................................;.................__ Life Rate per $1,000 of Benefit $0.130 D&D Rate per $1,000 of Benefit $0.030 BROWN & BROWN 1 10 Long Term Disability Benefit Comparison Eligibility Definition Monthly Benefit Maximum Elimination Period Benefit Duration Occupation Period Basic Monthly Earnings Definition Mental Illness/Substance Abuse Limitation Rate Guarantee Rates Cost Comparison Annual Dollar Change From Current Percent Change From Current Rates Table Description Rate Monthly Covered Payroll $49413,788 Rate per $100 of Payroll $0.330 RENEWAL $0.00 0% Rates Table Description _ 1 Rate Monthly Covered Payroll $4,4139788 Rate per $100 of Payroll $0.330 11 $0.00 0% BROWN & BROWN 1 11 Voluntary Life Description All Actively at Work Full Time Employees $10,000 to $500,000 not to exceed 5X employee's annual salary $250,000 Under age 70: $10,000 to $500,000 not to exceed 100% of employee's amount $50,000 $10,000 $10,000 Age 75 reduces 60% / Age 80 reduces 35% / Age 85 reduces 28% / Age 90 reduces 20% / Age 98 reduces 8% I Year SAble Matched Current Rates Description All Actively at Work Full Time Employees $10,000 to $500,000 not to exceed 5X employee's annual salary $250,000 100% of Approved Employee Life Benefit Not to Exceed $500,000 $50,000 $10,000 / Infant Benefit $1,000 for live birth to 6 months $ 10,000 Age 75 reduces 40% / Age 80 reduces 72% / Age 85 reduces 80% / Age 90 reduces 92% / 2 Year 13 BROWN & BROWN 1 12 THANK YOU1. Any solicitation or invitation to discuss insurance sales or servicing is being provided at the request of O � � �Bwr O �Brown &Brown of Arkansas, Inc., an owned subsidiary of Brown &Brown, Inc. Brown &Brown of Arkansas, Inc., only provides insurance related solicitations or services to insureds or insured risks in jurisdictions where it and its individual insurance professionals are properly licensed. © 2023 Brown & Brown. All rights reserved.