Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving Increased Estimated Annual Expenditures For Third Party Administration Services For Medical And Dental Plans With Blue Cross Blue Shield Of Florida/Florida Combined Life For The Remainder Of The Current Contract Term, With An Estimated Annual Amount For The Final Year Of The Contract (Ending December 2016) Not To Exceed 110% Of $1,118,783.20.
Body
Staff Recommends: Approval of the attached Resolution
Explanation:
June 1, 2011, the City Commission passed and adopted Resolution Number R-2011-128, which authorized the appropriate City Officials to execute an Amendment to the then existing agreement between Blue Cross and Blue Shield of Florida, Inc./Florida Combined Life and the City of Hollywood.
When the agreement between the City and Blue Cross and Blue Shield of Florida, Inc./Florida Combined Life was executed, the estimated expenditure for the third party administration and dental insurance was in the amount of $941,478.00 annually.
The estimate was formulated based on the number of employees and retirees covered under the medical plan only and the established 2011 rates.
The agreement includes an annual escalation of the established 2011 rate, but the total estimated annual expenditure as stated in Resolution Number R-2011-128 did not take into account the escalations.
The number of employees and retirees changes annually, and the annual cost for medical coverage is subject to annual escalation.
The 2015 Per Employee Per Month administrative fee for medical is $37.20 and $3.77 for dental and the 2016 Per Employee Per Month administrative fee for medical is $38.40 and $3.77 for dental.
The City's original 2011 estimated annual expenditure for both medical and dental has increased by $144,890.80 for 2015, bringing the total for 2015 to $1,086,368.80, and $177,305.20 for 2016, bringing the total for 2016 to $1,118,783.20, by correctly esti...
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