R2005-0131 08-22-05
RESOLUTION NO. R2005-131
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, APPROVING HEALTH INSURANCE RENEWAL RATES FOR
CIGNA HEAL THCARE.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That the City received renewal rates, attached hereto as Exhibit "A",
for health insurance benefits from Cigna HealthCare and such rates have been evaluated.
Section 2. That the City Council hereby adopts the renewal rates for health
insurance benefits in the amount described in exhibit "A", attached hereto and incorporated
for all purposes.
PASSED, APPROVED and ADOPTED this the 22nd day of AUCjust
A.D., 2005.
~~-~
TOM REID
MAYOR
ATTEST:
~~
APPROVED AS TO FORM:
(J4-' 1(. ()!-
DARRIN M. COKER
CITY ATTORNEY
II
CIGNA HealthCare
Proposed Benefits
Product: CIGNA HealthCare POS Open Access
Situs State: TX Effective Date: 1 % 1/2005
Benefits Summary
Category
Description
Medical Benefits
Modular Medical Management Program Benefit
Option
Coinsurance
PCP Office Visit Copay
Specialist Office Visit Copay
HospitallP - Per Admit Copay
HospitallP Deductible - Per Admit
Hospital IP Copay Per Day
Hospital IP Deductible - Per Day
Hospital IP - Number of Co pays 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
l-IRG23UII-SIF-l Revisionl
City of Pearland
2 of 12
In Network
PHS+
$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
20
NA
NA
07/15/05
Out of Network
50%
NA
NA
NA
$600
$1,200
$6,000
$12,000
$1,000,000
NA
$0
60
40
NA
NA
NA
..
CIGNA HealthCare
Proposed Benefits
Product: CIGNA HealthCare POS Open Access
Situs State: TX Effective Date: 1 % 1/2005
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
l-IRG23Ull-SIF-l Revisionl
City of Pearland
3 of 12
In Network
NA
$75
Excluded
Option I
Excluded
NA
Excluded
Included
Included
Included
Included
Included
Included
Included
Included
Included
Included
Included
Included
Excluded
Out of Network
$0
Excluded
07/15/05
..
CIGNA HealthCare
Proposed Benefits
Product: CIGNA HealthCare POS Open Access
Situs State: TX Effective Date: 1 % 1/2005
Benefits Summary (Cont.)
Category
Description
Pharmacy Benefits
$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
MH/SA Benefits
Option 2 - Low (POS)
Inpatient Per Day Copay
Inpatient Max Number of Days MH/SA Combined
MH Outpatient Copay I 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
Vision Benefits
None
l-lRG23UII-SIF-l Revisionl
City of Pearl and
4 of 12
In Network
$10
$20
$40
$20
$40
$80
$0
$0
NA
NA
Covered
Covered
Not Covered
Covered
Covered
Covered
Not Covered
Covered
Included
Incentive
Open
In Network
$100
8
$40
20
$15
$40
20
$20
40
Out of Network
Excluded
07/15/05
II
CIGNA HealthCare
Proposed Medical Rates
HMO Code: -
Site In : Grouo DescriotIon : PO A
Tier Inforce Current Renewal Monthly Change%
Subscribers Members Rate Rate Premium
Employee 209 209 $324.39 $324.39 $67,798 0.00
Emp + Spouse 26 52 $681.19 $681.19 $17,711 0.00
Emp+ 75 224 $583.88 $583.88 $43,791 0.00
Child(ren)
Emp + Family 33 133 $908.26 $908.26 $29,973 0.00
Total 343 618 $159,272
SO
l-IRG23UII-SIF-l Revisionl
City of Pearland
5 of 12
07/15/05
II
CIGNA HealthCare
Proposed Benefits
Product: CIGNA HealthCare PPO
Situs State: TX Effective Date: 1 % 1/2005
Benefits Summary
Category
Description
In Network
Medical Benefits
Inpatient Coinsurance
Outpatient Coinsurance
PCP Copay
HospitallP Deductible - Per Day
HospitallP 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
24HIL
Extended Preventive Care
Transition of Care
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
l-IRG23Ull-SIF-l Revisionl
City of Pearl and
6 of 12
07/15/05
Out of Network
60%
60%
$100
NA
$6,000
$12,000
$25
$0
$600
$1,200
II
CIGNA HealthCare
Proposed Benefits
Product: CIGNA HealthCare PPO
Situs State: TX Effective Date: 1 % 1/2005
Benefits Summary (Cont.)
Category
Description
In Network
Pharmacy 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 Generic
Mandatory Generic
MD Dispense as Written
Generic Push
Formulary
$10
$20
$40
$20
$40
$80
NA
95%
Covered
Covered
Covered
Covered
Covered
Not Covered
Not Covered
Not Covered
Not Covered
Covered
Excluded
Excluded
Excluded
Excluded
Open
MWSA Benefits
{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
90%
NA
$25
NA
NA
30
NA
60
NA
Vision Benefits
None
l-IRG23UII-SIF-l Revisionl
City of Pearland
7 of 12
07/15/05
Out of Network
40%
NA
NA
NA
$100
NA
Open
70%
50%
NA
NA
30
NA
60
NA
II
CIGNA HealthCare
Proposed Medical and RX rates
Site:
Group Description: PPO Outlier
Inforce Total Total Monthly
Tier Current Renewal Change %
Subs Mem Rate Rate Premium
Employee 1 1 $439.02 $439.02 $439 0.00
Emp + Spouse 0 0 $921.95 $921.95 $0 0.00
Emp + Child(ren) 0 0 $790.24 $790.24 $0 0.00
Emp + Family 0 0 $1,229.27 $1,229.27 $0 0.00
Total 1 1 $439
l-lRG23Ull-SIF-l Revisionl
City of Pearland
8 of 12
07/15/05
II
CIGNA HealthCare
Medical History Information
For
City of Pearland
Houston
1. Have there been any claims over $10,000 in the last 12
months?
2. Has any employee missed more than 10 consecutive days in
the last 12 months due to illness or injury?
3. Are there an em 10 ees with on oin disabilities?
4. Have any individuals been diagnosed, received treatment, or
are currently receiving treatment for any of the following
conditions in the past three years: Alcohol/Drug abuse, Cancer,
Diabetes, Heart Conditions, Immune System Disorders, Kidney
Ailments, Liver Diseases, Lung Conditions, Obesity, Organ
Transplants?
No known medical conditions exist
l-lRG23Ull-SIF-l Revisionl
City of Pearl and
9 of 12
07/15/05
II
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 30 days.
*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.
l-IRG23Ull-SIF-l Revisionl
City of Pearl and
10 of 12
07/15/05
II
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.
1-lRG23U11-SIF-1 Revision1
City of Pearl and
11 of12
07/15/05
II
CIGNA HealthCare
Underwriting Contingencies
For
City of Pear/and (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
Date
Client Name
Title
l-IRG23UII-SIF-l Revisionl
City of Pearl and
12 of 12
07/15/05
July 21, 2005
~..,/ ...~tt:J..
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City of Pearl and
Attn: Yesenia Garza
3519 Liberty Drive
Pearland, TX 77581
GROUP In: 1744
Dear Benefits Administrator:
Thank you for making Fortis Benefits Insurance Company an integral part of your overall benefits program, We hope that
you have been pleased with your dental benefit plan, October 1, 2005 is the renewal date for your dental benefits with
Fortis Benefits Insurance Company,
As you may be aware, inflation experienced in the dental industry and other factors 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.
The renewal rating for your group has been completed and your new rates effective October 1, 2005 are:
Premier
Tier Structure
Employee Only
Employee & Spouse
Employee & Child(ren)
Employee & Family
Current Rates
Tier Structure
Employee Only
Employee & Spouse
Employee & Child(ren)
Employee & Family
Renewal Rates
$27.81
$49.83
$64.55
$86.57
$27.81
$49.83
$64.55
$86.57
Fortis Benefits appreciates your business and is committed to providing you with the highest quality, affordable dental
coverage available. We are The Benefits Solutions PeoplesM! Please contact me if you need to request enrollment materials
or for questions regarding the renewal process at 713-830-3609.
Sincer~ly,
Indel1lnityGeneric--no VSP-Group.doc
Prudential i$ Financial
Suzanne L. Potter
Account Manager
Group Insurance
The Prudential IMuraoce Company of America
8117 Preston Road Suite 600
Dallas. Texas 75225
Phone: (214) 750-5067
Fax: (214) 750-5080
Email: suzanne.poner@prudential.com
July 29, 2005
James Cole
23 L 9 Frances
Pearland, TX 77581
Houston Hamilton
9707 Spring vieW T.N
Houston, TX 77080
RE: Renewal Group Life
Control Number: 40754
Policyholder Name: City of Pearl and
Dear James/llouston:
On behalf of Prudential, I would like to thank you for the opportunity to provide coverage over the recent
policy period_ As is customary this time of year, we have reviewed the rating and plan design for City of
Pcarland's program with Prudential. The review was done witb a focu.<l on any changes becoming effccti VI;
October 1, 2005.
The renewal evaluation has been completed and effective October 1, 2005, the following current contract
renewal rates will apply.
COV~~
Life
AD&D
Current Rate
$0.147 per $1000
$O.033/per $1000
Renewal Rate
$0.147 per $1000
SO.033 per $1000
Action
Continue
Continue
The basic life rate will continue at 0.147 per $1000, as of the effective renewal date. AD&D, Optional Life
and Dependent Life rates will be continued. A two year rate guarantee will also apply to all inforce life
coverages thru October 1, 2007.
We appreciate the opportunity to provide Life coverage to City of Pearl and and we look forward to
continuing to work with you to meet our client's benefit needs.
Please feel free to contact me with any questions you may have regarding the renewal. For any service
related questions, please contact your Account Consultant at 1-888-598-5671.
Sincerely,
SUZ4ftftB L. a>otur
Suzanne 1. Potter
Account Manager
CC: Client Operations Service Center
I e6lld
00000-000-000
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