R2004-134 08-23-04 RESOLUTION NO. R2004-134
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, APPROVING HEALTH AND DENTAL INSURANCE RENEWAL
RATES.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That the City received renewal rates, attached hereto as Exhibits "A"
and "B", for health and dental insurance benefits and such rates have been evaluated.
Section 2. That the City Council hereby adopts the renewal rate for health and
dental insurance benefits in the amount described in exhibits "A" and "B", attached hereto
and incorporated for all purposes.
PASSED, APPROVED and ADOPTED this the 23rd~day of Au~just ,
A.D., 2004.
ATTEST:
Y~)~ G LO~
(~,~' SECR'ETARY
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
TOM REID
MAYOR
Exhibit "A"
Resolution No. R2004 134
CIGNA HealthCare
CIGNA HealthCare Group Benefits Proposal
City of Pearland
3519 Liberty Drive
Pearland, TX 77581
SIC Code : 9131
Group Contact : Mary Hickling
Account Number : 3196548
Total Eligible Employees:
Employer Contributions :
Waiting Period :
Eligibility Definition :
324 Participating Subscribers : 324
Employee Contribution : 100%
Dependent Contribution: 0%
DOH
Active Employees working 30 hrs
Note: The Quoted rates are subject to final Underwriting approval and, as noted below, are subject to
change in the event of changes in benefits selected or changes in the risk factors upon which the Quoted
Rates are based. In addition, state law may require regulatory approval of rates. If required regulatory
approval has not been obtained on the proposed effective date, the healthplan shall use rates that are
consistent with its then currently approved rating methodology and the quoted rates shall be effective
immediately on the date for which they are approved for use. The Quoted Rates are guaranteed while the
Group Service Agreement remains in effect until the next anniversary date, unless enrollment changes by
15% in which case the CIGNA Companies may change the Quoted Rate.
•
1-102ITX31-SIF-1 Revisionl 1 of 13 08/12/04
City of Pearland
CIGNA HealthCare
Proposed Benefits
Product: CIGNA HealthCare POS Open Access
Situs State: TX Effective Date: 10/01/2004
Benefits Summary
Category Description
Medical Benefits
Modular Medical Management Program Benefit
Option
Coinsurance
PCP Office Visit Copay
Specialist Office Visit Copay
Hospital IP - Per Admit Copay
Hospital IP Deductible - Per Admit
Hospital IP Copay Per Day
Hospital IP Deductible - Per Day
Hospital IP - Number of Copays Per Admission
Hospital IP - Number of Deductibles Per Admission
Hospital IP Coinsurance
Plan Deductible — Individual
Plan Deductible — Family
Out of Pocket Maximum — Individual
Out of Pocket Maximum — Family
Lifetime Maximum
Annual Maximum
Outpatient Facility Copay
Outpatient Facility Deductible
Outpatient Coinsurance
Emergency Room Copay
Urgent Care Copay
Skilled Nursing Facility Copay
Skilled Nursing Facility Maximum Days
Home Health Care Copay
Home Health Care Maximum Days
DME
Durable Medical Equipment Maximum
EPA
External Prosthetic Appliances Deductible
External Prosthetic Appliances Maximum
Chiro
Short Term Rehab Copay
Chiro Copay
Short Term Rehab and Chiro Combined Maximum
Visits
Short Term Rehab Maximum Visits
Self -Referred Chiro Maximum Amount
•
In Network
$20
$40
NA
NA
NA
80%
$0
$0
$3,000
$6,000
Unlimited
NA
80%
$100
$50
$0
60
$0
60
Included
$3,500
Included
$200
$1,000
Included
$40
$40
60
NA
NA
Out of Network
50%
NA
NA
NA
$600
$1,200
$6,000
$12,000
$1,000,000
NA
$0
60
40
NA •
NA
60
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City of Pearland
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CIGNA HealthCare
Proposed Benefits
Product: CIGNA. HealthCare POS Open Access
Situs State: TX Effective Date: 10/01/2004
Benefits Summary (Cont.)
Category Description
Medical Benefits (Cont.)
Self -Referred Chiro Maximum Visits
MRI CT PET Scans Copay
PCL
Infertility
Non -Surgical TMJ
Medicare COB: Retirees >=65 Admin Option
Robust Reporting Package
24 Hour Health Info Line
Well Aware Program (Diabetes, Asthma, Low Back)
Well Aware Program (Cardiac)
Well Aware Program (COPD)
Well Being Newsletter
Healthy Babies
Healthy Rewards
Life Source Organ Transplant Network
Guest Privileges
Language Line
Drugstore.Com
Transition of Care
CIGNA Health Advisor Benefit Option
In Network
NA
$75
Excluded
Option 1
Excluded
NA
Excluded
Included
Included
Included
Excluded
Included
Included
Included
Included
Included
Included
Included
Included
Excluded
Out of Network
Excluded
1-102ITX31-SIF-1 Revisionl
City of Pearland
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08/12/04
CIGNA HealthCare
Proposed Benefits
Product: CIGNA HealthCare POS Open Access
Situs State: TX Effective Date: 10/01/2004
Benefits Summary (Cont.)
Category
Pharmacy Benefits
MH/SA Benefits
Vision Benefits
Description
$10/$20/$40
Copay - Generic
Copay - Brand
Non -Preferred Copay
Mail Order Copay - Generic
Mail Order Copay - Brand
Mail Order Copay - Non -preferred
Retail - Individual Deductible
Retail - Family Deductible
OOP - Individual Maximum
OOP.- Family Maximum
Oral Contraceptives
Contraceptive Devices
Lifestyle Drugs
Insulin Needles & Syringes
Glucose Test Strips/Lancets
Prenatal Vitamins
Oral Fertility Drugs
Insulin
Generic Push
Formulary
Prescriber Panel
Description
Option 2 - Low (POS)
Inpatient Per Day Copay
Inpatient Max Number of Days MH/SA Combined
MH Outpatient Copay 1 to 20 Visits
MH Outpatient Max Number of Visits
Outpatient SA visits 1-2 Copay
Outpatient SA visits 3-20 Copay
SA Outpatient Max Number of Visits
Group Therapy Outpatient Copay
Group Therapy MH/SA Combined Maximum Visits
MH/SA OON Buy -up Option
None
In Network
S10
S20
S40
S20
S40
S80
SO
SO
NA
NA
Covered
Covered
Not Covered
Covered
Covered
Covered
Not Covered
Covered
Included
Incentive
Open
In Network
S100
8
S40
20
S15
S40
20
$20
40
Out of Network
Excluded
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CIGNA HealthCare
Proposed Medical Rates
HMO Code : -
•
OSOA
VTier
Inforce
Current
Renewal
Monthly
Change%
Subscribers
Members
Rate
Rate
Premium
$324.39
$64,554
0.00
Employee
199
199
$324.39
Emp
+ Spouse
16
32
$681.19
$681.19
$10,899
0.00
+
70
204
$583.88
$583.88
$40,872
0.00
Emp
Child(ren)
26
$908.26
$34,514
0.00
Emp
+
Family
38
154
$908
Total
323
589
$150,838
1-102ITX31-SIF-1 Revisionl
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CIGNA HealthCare
Proposed Benefits
Product: CIGNA HealthCare PPO
Situs State: TX Effective Date:
Benefits Summary
Category Description
Medical Benefits
Inpatient Coinsurance
Outpatient Coinsurance
PCP Copay
Hospital IP Deductible - Per Day
Hospital IP Deductible - Per Admit
Out of Pocket Maximum - Individual
Out of Pocket Maximum - Family
Emergency Room Deductible
MRI, CT PET Scans Copay
Plan Deductible - Individual
Plan Deductible - Family
Lifetime Maximum
DME
Chiro
Non -Surgical TMJ
EPA
PCL
Infertility
24 HIL
Extended Preventive Care
Transition of Care
10/0 1/2004
In Network
80%
80%
$20
NA
NA
$3,000
$6,000
$100
$0
$300
$600
$1,000,000
Included
Excluded
Included
Excluded
Included
Excluded
Included
Included
Excluded
Out of Network
60%
60%
NA
NA
$6,000
$12,000
$100
$0
$600
$1,200
1-102ITX3 1-SIF- 1 Revisionl
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08/12/04
CIGNA HealthCare
Proposed Benefits
Product: CIGNA HealthCare PPO -
Situs State: TX Effective Date: 10/01/2004
Benefits Summary (Cont.)
Category Description
Pharmacy Benefits
MH/SA Benefits
RxPRIME Three -Tier Copay (PPO)
Pharmacy Coinsurance
Copay - Generic
Copay - Brand
Non -Preferred Copay
Mail Order - Generic Copay
Mail Order - Brand Copay
Mail Order Copay - Non -preferred
Drug Deductible
Network Match %
Oral Contraceptives
Contraceptive Devices
Insulin Needles & Syringes
Glucose Test Strips/Lancets
Prenatal Vitamins
Vitamins
Smoking Cessation
Injectable Drugs
Oral Fertility Drugs
Insulin
No Mandatory Genene
Mandatory Generic
MD Dispense as Written
Generic Push
Formulary
{Mental Health - Alcohol & Drug Abuse}
Inpatient Coinsurance
Outpatient Coinsurance
Outpatient Copay
Inpatient Deductible - Per Admit
Inpatient Deductible - Per Day
Inpatient Cal Year Max Days
Inpatient Lifetime Max Days
Outpatient Cal Year Max Days
Outpatient Lifetime Max Days
Vision Benefits None
In Network
$10
$20
$40
$20
$40
$80
NA
95%
Covered
Covered
Covered
Covered
Covered
Not Covered
Not Covered
Not Covered
Covered
Covered
Included
Excluded
Excluded
Excluded
Open
80%
NA
$25
NA
NA
30
NA
60
NA
Out of Network
50%
NA
NA
NA
NA
NA
Open
60%
50%
NA
NA
30
NA
60
NA
1-102ITX31-SIF-1 Revisionl
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CIGNA H ealthCare
Proposed Medical and RX rates
Group Description : PPO Outlier (EE's out of the OA POS network)
Inforce
Renewal
Monthly
Premium
Change
g
Total
Rate Current
Total
Rate
Tier
Subs
Mem
Employee
0
0
$450.46
$450.46
$0.00
0.00
Emp
+ Spouse
0
0
$945.98
$945.98
$0.00
0.00
Emp
+ Child(ren)
0
0
$810.84
$810.84
$0.00
0.00
Emp
+
Family
0
0
$1,261.31
$1,261.31
$0.00
0.00
Total
0
0
$0.00
Group Description : Medicare COB
Inforce
Renewal
Monthly
Premium
Change
o
g /o
Total
Rate Current
Total
Rate
Tier
Subs
Mem
Employee
1
1
$439.02
$439.02
$439
0.00
Emp
+ Spouse
0
0
$921.95
$921.95
$0.00
0.00
Emp
+ Child(ren)
0
0
$790
24
$790.24
$0.00
0.00
Emp
+
Family
0
0
$1,229.27
$1,229
27
$0.00
0.00
Total
1
1
$439
1-102ITX31-SIF-1 Revisionl
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CIG-N-AI-HealthCare
Medical History Information
For
City of Pearland
Houston
1.
Have
there
been any claims
over
$10,000
in the
last
12
months?
last
2.
Has
any
12 months
employee
due
to illness
missed
mjury?
than
10
consecutive
days
in the
more
or
3. Are
there
any employees
with
ongoing
disabilities?
4.
currently
the
Conditions,
Diseases,
Have
past
three
any
receivmg
Lung
individuals
Immune
years:
Conditions,
treatment
Alcohol/Drug
System
been
diagnosed
for
abuse
of
Organ
the
received
Cancer,
Kidney
following
Transplants?
Ailments,
treatment,
Diabetes,
conditions
Liver
Heart
or are
in
Obesity,
any
Disorders,
No known medical conditions exist
•
1-102ITX31-SIF-1 Revision 1
City of Pearland
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CIGNA Hea1thCare
1-1O2ITX31-SIF-1 Revisionl
City of Pearland
10 of 13 08/12/04
CIGNA HealthCare
Underwriting Contingencies
For
City of Pearland
*The rates are guaranteed for a period of 12 months while the contract remains in force.
*The employer contributes at least 50% toward the total cost of the plan.
*No seasonal employees are covered under this plan.
*The current waiting period is Date of Hire.
*This quote assumes all employees are located in the network area, and that all employees are only eligible for
the product offerings specified.
*The CIGNA HealthCare Companies retain the right to modify the rates and benefits set forth in this quotation,
or to decline to offer coverage if any of the information upon which these rates or benefits was based changes or
is not accurate.
*If any information set forth in this form changes at any time while coverage is provided to you by CIGNA
HealthCare Companies, you must notify us within 30 days of these changes.
*There is a minimum participation of 50% required. This will be based on the total eligible employees,
identified as employees.
*If a decision is not reached within 60 days from the date the rates and/or fees set forth herein are received, then
Connecticut General Life Insurance Company and its affiliated companies and entities (collectively, "CIGNA")
reserves the right to revise said rates and/or fees.
*If enrollment increases or decreases by 15% or more from the enrollment assumptions used in establishing the
rates and/or fees set forth herein, CIGNA reserves the right to revise said rates and/or fees.
*Connecticut General may cancel the policy as of any Premium Due Date if the number of insured Employees
fails to meet the minimum required per group participation rules or for failure to comply with any other material
plan provision relating to Employer contributions or group participation rules.
*No Medicare eligible retirees are covered under this plan.
*Medical History Information is accurate to the best of your knowledge
*State law may require regulatory approval of rates. If, as of their proposed effective date, regulatory approval is
not obtained, the healthplan shall use rates consistent with its then currently approved rates and the foregoing
rates shall be effective automatically upon approval.
1-102ITX31-SIF-1 Revisionl
City of Pearland
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CIGNA HealthCare
Underwriting Contingencies
For
City of Pearland (cont.)
*Out of Network benefit maximums are reduced by In -Network utilization.
*Urgent Care is subject to plan deductible and coinsurance if member is out of area.
*Emergencies are always covered In -Network provided that the situation meets CIGNA HealthCare's standard
definition of an Emergency.
*All covered Out -of -Network services are subject to plan deductible and coinsurance.
*Blended rates apply to current sites only. New members added to the existing sites during the year are covered
under the existing blended rate
*Any new sites added during the year, regardless of membership size, must be priced and quoted by
Underwriting according to the site specific demographics
*CIGNA HealthCare reserves the right to re -blend the quoted rates, if one or more of the quoted sites A)
Withdraws prior to the effective date of the account or B) Cancels during the policy year.
*CIGNA HealthCare Companies reserve the right to adjust the quoted rate(s) including blended rate(s) if: A)
One or more of the quoted sites withdraws prior to the effective date or terminates during the contract term, or
B) At any time following enrollment the distribution of covered participants by site would cause the blended
rate(s) to vary by 5% or more.
*CIGNA HealthCare is the exclusive provider of healthcare coverage to your employees.
1-102ITX31-SIF-1 Revisionl
City of Pearland
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CIGNA H ea1t Care
Underwriting Contingencies
For
City of Pearland (cont.)
The CIGNA HealthCare Companies reserve the right to change the Quoted Rates and/or Quoted Benefits or to
decline to offer coverage if any of the foregoing information is inaccurate or changes prior to the proposed Effective
Date indicated above, or if the quoted rates and/or fees are not agreed to within 60 days of receipt of this summary
information form. If any of the information identified above changes either prior to the proposed Effective Date or
while coverage is in effect, you agree to notify us promptly of such change.
The "Underwriting Contingencies" set forth above shall survive execution of any insurance policy, application, etc.,
issued by Connecticut General Life Insurance Company or any other CIGNA HealthCare company, and shall further
survive the effective date of any such policies.
The benefits displayed in this summary are, for the most part, modular benefit packages used to develop the
rates. Please review the Benefit Summary and its attachments for information about the benefits available in
your sites.
"CIGNA Healthcare ' refers to various operating subsidiaries of CIGNA Corporation. Products and services are
provided by these subsidiaries and not by CIGNA Corporation. These subsidiaries include Connecticut General Life
Insurance Company, Tel -Drug, Inc. and its affiliates CIGNA Behavioral Health, Inc. Intracorp, and HMO or
service company subsidiaries of CIGNA Health Corporation and CIGNA Dental Health, Inc.
Client Signature
Bill Eisen
8/23/04
Date
City Manager
Client Name Title
1-1O2ITX31-SIF-1 Revisionl
City of Pearland
13 of 13 08/12/04
Exhibit "B"
Resolution No R2004 134
ASSURANT
Employee
Benefits
Ms. Yesenia Garza
City of Pearland
3519 Liberty Dr.
Pearland, TX 77581
Group ID #: I744
Dear Mr. Garza:
July 13, 2004
Thank you for making Assurant Employee Benefits, formerly Fortis Beneftis Insurance
Company, an integral part of your overall benefits program. We hope that you have been
pleased with your dental plan. October 1, 2004 is the renewal date for your dental
beneftis with Fortis Benefits Insurance Company.
As you may be aware, inflation experienced in the dental industry and other facotrs
necessitate periodic reviews of rates. Our goal is to hold these rates at levels that are
reasonable and adequate to fund your level of benefits .while providing the best possible
service.
We are pleased to announce that the renewal rating for your group will be unchanged
effective October 1, 2004:
INDEMNITY PLAN (Premier F4):
Employee
Employee/Spouse
Employee/Children
Employee/Family
Current
$27.81
$49.83
$64.55
$86.57
Renewal
$27.81
$49.83
$64.55
$86.57
We appreciate the confidence you have placed in Assurant Employee Benefits and we
remain committed to providing the highest quality dental coverage and the best customer
service available. We art The Benefits Solutions People! Please contact me if you need to
request enrollment materials or for questions regarding the renewal process at -
713-780-1111 ext. 7114
tan ' a DePrato
Renewal Manager
10375 Richmond Avenue Ste 1675 Houston, TX 77042
713-780-1111/713-780-2121