Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Authorizing The Appropriate City Officials To Execute A Five-Year Agreement With Vision Service Plan For Vision Insurance In An Annual Amount Not To Exceed $289,051.40.
Strategic Plan Focus
Employee Development & Empowerment
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
The City’s current vision insurance provider is VSP and its contract expires December 31, 2022; to align current healthcare coverage offerings, the City’s benefits consultant, the Gehring Group, issued a Request for Proposals (RFP) at the same time as other lines of coverage to find the most competitive offer for vision insurance. The RFP was issued on April 23, 2021. Aetna, Ameritas Group, Cigna, EyeMed, Humana, Lincoln Financial Group, MetLife, National Vision Administrators (NVA), Reliance Standard, Solstice, The Standard, and VSP all provided proposals for vision services. Ameritas Group, Lincoln Financial Group, Reliance Standard and Solstice were disqualified due to non-competitive pricing. When analyzing vision insurance, many factors are compared including plan design, proposed rates, rate guarantee and provider network access. Carriers who proposed similar plan designs to the City’s incumbent, VSP, were NVA and EyeMed with slight differences in frames and out of network benefits. VSP proposed a 15.7% decrease to current rates with a 78.9% network match while NVA and EyeMed’s network match were lower. After careful review it was recommended the City maintain VSP for vision insurance as they are proposing the strongest network provider match and plan design offering. VSP’s offer also includes a $20.00 increase in the allowances provided to employees and retirees towards their frames, an enhanced Sun Care benefit which allows the frame allowance to be used for non-prescription glasses at participating providers along with a 15.7% decrease in premiums per year over the five-year contract period compared to previous contract terms. The Gehring Group and the City are recommending that the City remain with VSP for an annual not to exceed amount of $289,051.40, which includes a ten percent buffer to allow for fluctuations in cost. This Resolution seeks City Commission authorization to implement a five-year agreement for Vision Insurance between VSP and the City for a not to exceed annual amount of $289,051.40.
Fiscal Impact:
There is no fiscal impact to the City. The City’s voluntary vision insurance program is funded entirely by City employees and retirees without a premium contribution from the City.
Recommended for inclusion on the agenda by:
Tammie L. Hechler, Director of Human Resources
George R. Keller, Jr. CPPT, Deputy City Manager