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Item C28BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: October 15, 2003 Division: Management Services Bulk Item: Yes X No Department: Group Insurance AGENDA ITEM WORDING: Approval to complete the application for voluntary dental and vision benefits with American General effective January 1, 2004. ITEM BACKGROUND: BOCC approved the administrations recommendation on April 17, 2003 to make dental and vision benefits available to employees through a third party at a savings of $920,000.00 to the Group Insurance Program. PREVIOUS RELEVANT BOCC ACTION: BOCC directed on April 17, 2003 that a request for proposals be done for a fully -insured voluntary dental and vision benefits. CONTRACT/AGREEMENT CHANGES: Rates are guaranteed for 2 years. STAFF RECOMMENDATIONS: Approval TOTAL COST: $869,950.00 COST TO COUNTY: None BUDGETED: Yes SOURCE OF FUNDS: No REVENUE PRODUCING: Yes No AMOUNT PER MONTH Year APPROVED BY: County Atty OMB/Purchasing Risk Management J'�i---- DIVISION DIRECTOR APPROVAL:--t Sheila A. Barker DOCUMENTATION: Included To Follow X Not Required DISPOSITION: AGENDA ITEM Revised 1/03 1111 No. Westshore Blvd., Suite 208 Tampa, FL 33607-4711 Telephone: 813-287-1040 Facsimile: 813-287-1041 Interisk E-mail: IsinteriskQaol.com Corporation Memorandum To: Maria Fernandez/Monroe County Benefits From: Interisk Corporation/Lawton Swan Date: October 2, 2003 Re: Dental and Vision Proposal Review The County received and reviewed thirteen separate proposals for dental benefits and four proposals for vision benefits. Based on the County's initial review, the two top proposers (CompBenefits and Amercian General) were forwarded to Interisk Corporation for a more detailed analysis. Those proposals have been reviewed and the following comments are provided for your consideration. The CompBenefits and American General proposals are considered similar in benefits provided and the proposed rates are reasonable in today's fully insured market place. Dental Benefit Both the CompBenefits Insurance Company and American General proposals provide indemnity benefits. Members can utilize any dentist as needed in the Monroe County area. CompBenefits offers a two tiered rating structure while American General offers a four tiered rating structure. The four -tiered rating structure allows employees more flexibility to fit their individual needs and should result in lower overall cost to employees. American General also has offered a lower rating system for their preferred provider organization (PPO). They are willing to utilize those rates for the dental benefit plan even though they do not currently have an active dental network in the County. Their out -of -network benefits are comparable to the County's current dental plan and in some cases are better. Both proposals provide a two-year rate guarantee. The American General enjoys a favorable rating from the A. M. Best Company, the leading insurance rating organization. CompBenefits Insurance Company is not currently rated by the A. M. Best Company. Their financial statements submitted with their proposal were reviewed and do not display as much capital and surplus as the American General proposal. We believe the stronger and ultimately less cost proposal is the one from American General and recommend it for selection for January 1, 2004. Vision Benefit Both CompBenefits and American General proposed vision benefits. We believe the benefits under each are acceptable. CompBenefits' proposes a dual rate structure. However, their Combo Option was eliminated from consideration because it requires 100% participation, which would be difficult for the County to achieve. Their Section 125 Option rates are higher than American General's. October 2, 2003 Since the CompBenefits Combo Option was eliminated from consideration, the American General proposal offers lower rates. It is recommended that the American General proposal be accepted for the January 1, 2004 — 2005 term. We believe that using one source for both the dental and vision benefits will result in better coordination and lower costs. K October 2, 2003 Dental Rates CompBenefits American General PPO Option Indemnity Option Employee 32.48/month Employee 25.98/mo 33.65/month Employee + Family 96.54/month Emp+Spouse 50.35/mo 65.22/month Emp+Children 54.33/mo 70.38/month Emp+Fam 78.70/mo 101.94/month Vision Rates CompBenefits American General Combo Plan (mandatory 100%) See.125 Plan (voluntary) (voluntary) Employee 3.69/mo Employee 5.92/mo Employee 4.70/mo Emp + one 7.39/mo Emp + one 11.82/m Emp+Spouse 9.10/mo Emp+ faro 12.38/m Emp+fam 19.80/m Emp+Faro 15.10/mo AmERICAN The United States Life Insurance Company in the City of New York GENERAL Member of American International Group, Inc. (Called United States Life) MASTER APPLICATION FOR EMPLOYEE BENEFITS United States Life's group underwriting rules will be used to determine whether the applicant, if accepted, will participate in a Multiple Employer Trust, or will be issued a -group policy. IMPORTANT NOTICE Any person who knowingly and with intent to injure, defraud or deceive any insurer files an application or statement of claim containing any false, incomplete or misleading information, is guilty of a felony in the third degree. APPLICANT DATA: 1. Full name of Applicant (Company): S 2. Group Contact Name: c� 3. Street Address: �IiC7G S1 W-,LNTQA --Jupii, City: .z�I l Wes Stater Zip: Telephone: (CS)_ aQa— QSZLIA Mailing Address (if different): Fax: ("- `')S) ool ` �USoi City: Stater Zip: Email Address: SIC Code: 4. Applicant is a: ❑ Proprietorship ❑ Partnership ❑ Corporation ❑ Union Ether (Explain): GLj_\.tr�' CoW Lk*__ -KM 5. Nature of Business: e,i5ik2L_k4 _,f—Z- 6. Are the employees of any affiliated or subsidiary companies or any other locations to be covered? ❑ Yes Ca<O If yes, give details below. If more space is needed, attach a separate sheet. # of Full -Time Name of Company Nature of Business Full Address Employees 7. Have you ever been insured for group insurance with United States Life? ❑ Yes o If yes, give details below. Group policy number(s) Date Insurance Ended Effective Date (if still insured) _ 8. Is coverage applied for in this application replacing other employer sponsored group insurance? es ❑ No If yes please complete information below and attach a copy of the present carrier's last bill, the insurance certificate, and the group policy (if applicable). Group Carrier's Name and Proposed Group Voluntary Effective Date Termination Date Life ' ❑ Life ' ❑ Dental Dental ❑ A; aer,zk STD ❑ STD ❑ ' LTD ❑ LTD ❑ ' including annuities 9. Are there other Group Life Insurance plans (including annuities) in force which you are not replacing or currently applying for with another carrier? ❑ Yes ['-]-I�o If yes, please indicate the highest benefit amount of each plan. Will any coverages selected be part of a Flexible Benefit Program under section 125? 94s ❑ No If Yes, please list coverages below and the percentage of the employees contribution that is paid with pre-tax dollars. ❑ Life and AD&D % ❑ Dental/Vision �% ElDisability % NOTE: The applicant may be required to furnish proof that duplication of coverage does not exist. If the application is approved based on the representation that existing insurance will be terminated, insurance under the United States Life plan may not take effect until the day after the existing insurance is terminated. HOME OFFICE USE ONLY Group Number: Division Number: G-24077 (FL) Page 1 00305101-1186 R08/02. EMPLOYEE ELIGIBILITY A FULL-TIME EMPLOYEE is one who: • works at least 30 hours (20 hours for Voluntary Life only) per week, or?-5 hours per week (requires underwriting approval) • works the Applicant's regular work schedule; and • performs his/her job for full pay; and • works at the Applicant's place of business. 10. Do you want to exclude any classes of full-time employees from coverage? ❑ Yes P; / If yes, list each class by salary, job title, union membership, or other condition pertaining to employment: Total # of excluded employees PARTICIPATION DATA A WAITING PERIOD is a period of time that an employee must work on a full-time basis in an eligible class before becoming eligible for coverage. PRESENT EMPLOYEES means employees who are at work on a full-time basis on the effective date. / 11. Waiting period: Present Employees L�' months OR ❑ First of the month following months' Future Employees &,i �4�f_S months OR ❑ First of the month following months' *Only option available for Voluntary Coverages. Available on Group coverages with the 1st of the month effective date only. 12. a. Number of Full -Time Employees (Include employees not to be covered and those being continued) 12. b. Number of Full-time Employees waiving all coverages .......................... ��............................................... 13. Do you employ 20 or more employees? (Include part-time, union, etc.) t?Yes ❑ No CONTRIBUTION DATA/PREMIUM ELECTION 14. Will the employees be required to contribute toward the cost of the insurance? es ❑ No (For Voluntary Plans, employees pay all of the cost.) If yes, indicate the percentage of the cost of each coverage the employer will pay. Note: If the employer pays the entire cost for the employees, then 100% of the eligible employees must be covered. Coverage Life/AD&D Dep Life EE Dental* Dep Dental* EE Vision* Dep Vision* STD LTD Integrated DI Employer % 115. The employer must contribute a minimum of 35% of the total dental and vision premiums a. Premiums will be paid: ❑ Annually ❑ Semi-annually ❑ QuarterWlyL'_ onthly 15. b. Have you elected to pay your premiums using electronic transfer? ❑Yes EMPLOYEE/DEPENDENT DATA 16. Are there any employees who, in the las,_J2 months, have been out of work due to injury or sickness for at least 5 consecutive working days? ❑ Yes o If yes, give details below. If more space is needed, attach a separate sheet, signed and dated by the Applicant. Note: This question does not need to be answered for Life and AD&D groups with more than 50 employees insured, Dental coverages, or for Disability coverages with ten (10) or more employees insured. Date Disability Began Current Amount Of Group Life Insurance in Force Describe Nature of Injury/Sickness Date Return To Full -Time Work G-24077(FL) REQUESTED EFFECTIVE DATE I request that the coverage(s) chosen take effect on: ❑ the date the application is approved in writing by United States Life; or ��AIJIJA(1 1{If the application is approved in writing by United States Life, this will be the Effective Date, which may not be changed. (A first of the month effective date must be requested for Voluntary plans). For all plans except Voluntary, premiums will be due as of the effective date. The premium for the first month of coverage must be included. APPLICANT'S DECLARATION 1. 1 verify that all employees applying for coverage listed on the census form are actively at work and working at least 30 hours per week, unless another minimum work requirement was authorized by The United States Life Insurance Company, and all employees meet the eligibility requirements as listed on the application. 2. 1 verify that the United States Life Insurance Company's benefit plan(s) have been offered to all employees. Completed waivers are attached for those employees and dependents electing not to participate in the plan(s). Note: Changes in the Census data, may affect previously quoted rates. 3. To the best of my knowledge and belief, all statements and answers given in this application are true and complete. 4. The agent(s) appointed for this application is (are): AILj0 hL\U20 : 5. 1 understand and agree that: • no agent may change or waive any of the provisions of this application or of any plan of insurance; • any change or waiver may be made only by an officer of United States Life; and • this application will be accepted or declined partly on the basis of the statements and answers given in this application. • If the insurance contract compromises a part of an employee benefit plan, the United States Life Insurance Company is granted sole discretionary authority to determine eligibility, make all factual determinations and to construe all terms of the policy. The United States Life Insurance Company has no responsibility or control with respect to any other benefit which may be provided beyond this contract or any other plan of benefits. DATE PRINT NAME OF OFFICER, PARTNER, PROPRIETOR WITNESS SIGNATURE OF OFFICER, PARTNER, PROPRIETOR Note: If there are any modifications to the statements and answers given in this application (i.e. crossed -out, whited -out erased information), the applicant must attest to the modification(s) by giving a complete signature in the margin of each page which includes a modification. Applicant Beneficiary Forms, Dependent Information Forms, or Refusal of Coverage Forms must be completed for coverage if applicable. PRODUCING AGENT'S DECLARATION/DATA Please Print PRODUCING AGENT To the best of my/our knowledge and belief, all the statements and answers given in this application are true and complete. (Please check one of the following) ❑ To the best of my/our knowledge and belief, the insurance applied for does not replace any existing insurance. ❑ The insurance applied for will replace the following coverage (provide plan names, effective dates, and proposed termination dates): Signature Date City and State Where Signed Producer # Tax ID # /SS # % Commissions split with other agents Name As Licensed License # Mailing Address City/State/Zip Phone Fax E-Mail 'Please Print GENERALAGENT General Agent # Name TAX ID # / SS # Phone Fax E-Mail HOME OFFICE USE ONLY Policy No. Premium Deposit $ Underwriter Mode Coverages Group Contact Producer GA G-24077 (FL) Page 3 00305101-1186 R08/02 AMERICAN GENERAL The United States Life Insurance Company in the City of New York Member of American International Group, Inc. (Called United States Life) PARTICIPATION AGREEMENT Full Name of Applicant (Company): I understand that Application G-24077(FL) may be an application to participate in a Multiple Employer Trust, as determined by the underwriting rules of United States Life. If it is, then this Participation Agreement applies. The Trust Agreement establishes the group insurance fund. A copy of the Trust Agreement will be provided to me if I request it in writing. I agree to be bound by the terms of the Trust Agreement. DATE WITNESS PRINT NAME OF OFFICER, PARTNER, OR PROPRIETOR SIGNATURE OF OFFICER, PARTNER, OR PROPRIETOR HOME OFFICE USE ONLY Group Number: Division Number: G-24077 (FL) - PARTICIPATION AGREEMENT 00305101-1188A R08%0,2 U) Z O LL O U Z g a J H Z W 0 �rn ca Ln — O _ N O N t 8 p V o C N N fl N �=? TZ ,ZQ O $ O CC) O Ln p O aJ u'f � O l0 O�UO � O X W c O= Z c� 7 LU a G7 O Z r p Vo7S O O L ca •p O N a> a) N a L cN- N a) 0 {.i N m t 0 N � 000 lOf1 N r CLJ a) Z p 0 0 Z 4. 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O_ mtan) O' R CLm> a) :2 w m> O N c> O O T-> �� E Owe 7 L1 W CL W N W N W 0 L C U O w N N U Z LOUce i-+ = Cl Ln m a O '� O O N 'L E O OWL LL a O n E N E E " E V N N W N d N N 'O y fl 27 O O Z O O 2 O O a) Ln In a) M w In CD W C7 W N W N W N W N H LL � fn F- Qx N W W m W N H Y W LU LL o g 000 o /%KLnk § E E E § §/E .[35 o E C4 z m CDS R 2 § » ® a) E �E .33' 5. o E C-4zm� a w / me C-- 0 ® G t°,G232h 2 m =E t u f 25 2/ g § § 2 2 --IM4T ■ _ o—cuc��_�m @a£s°®=—a § k\$G�0 0C;4D ~a§m/ LeuaE q 7GLn // / e m u \@ § ° E 2 kE2 § 04 � LU t Im kƒz$ § Lnu0LL + + + + wLULUuiLU LUuiuuLULU 00000 aa�a� ■uiuiu� ui ui ui ui� AMERICAN GENERAL National PPO Dental Coverage Coinsurance Services In Out* Deductible And Preventive 100% 100% $0 In network, $50 Out of Network Basic 90% 80% $50 Deductible Major 60% 50% $50 Ortho 50% $0 Maximums $2,000 Calendar Year Non-Ortho Maximum $1,500 Lifetime Ortho Maximum Miscellaneous Endo, Perio, and Oral Surgery covered as Basic services. *Payment at 80a' percentile. Ortho benefit covers dependent children only. Waiting Periods Applicable to late entrants only. Six months for Basic services. Twelve Months for Major services. Twenty -Four Months for Ortho services. No Loss — No Gain Continuity of coverage. will be provided for all employees as of the effective date of coverage. No individuals will lose coverage solely based on the change in carriers. Dental Provisions ➢ AIG National Network dentists must be used for In network reimbursement. ➢ Child(ren)'s coverage terminates at age 19; or 25 if full-time student ➢ TMJ coverage is excluded.. Rate Summary National PPO Dental 2 year Employee Only $25.98 Employee & Spouse $50.35 Employee & Child(ren) $54.33 Full Family $78.70 SPEC T ILIA/\ A UnitedHealth Group Company SPECTERA VISION PROGRAM Benefits Network, Out-of-Network2 Eye Examination 100% up to $40.00 Spectacle Lenses Single Vision 100% up to $40.00 Bifocal 100% up to $60.00 Trifocal 100% up to $80.00 Lenticular 100% up to $80.00 Frames o 100%3 up to $45.00 Elective Contact Lenses4 Covered -in -full contacts 100% up to $105 All other elective contacts up to $105 up to $105 Necessary Contact Lensess 100% up to $210.00 Network Benefits — Exam and materials copays and patient options are paid to the network provider by the plan participant. Out -of -Network Benefits — The plan participant pays full fee to the provider and Spectera reimburses the participant for services rendered up to maximum allowance. There are no copays or deductibles. Frame Benefit - Over 60% of all frames on the market today are covered -in -full by Spectera's frame benefit (after applicable copay). With Spectera's frame benefit, all frames with a $50 wholesale cost or less are covered -in -full at private practice providers. For any frame with a wholesale cost greater than $50 at private practice providers, the participant only pays the difference between the wholesale cost of the frame and the $50 allowance. Plan participants receive a minimum $120 frame allowance for frames purchased at retail chain providers. Contact lenses are provided in lieu of spectacle lenses and frames. Spectera's contact lens benefit covers in -full (after applicable copay) the fitting/evaluation fees, contacts (disposable contacts/up to 4 boxes, depending on prescription), and up to 2 follow-up visits. A $105 allowance is applied toward the fitting/evaluation fees and purchase of contact lenses outside of Spectera's covered -in -full contacts (materials copay does not apply). Toric, gas permeable, and bifocal contacts are all examples of contacts that are outside of our covered -in -full selection. Necessary contact lenses are determined at the provider's discretion for one or more of the following conditions: Following cataract surgery; To correct extreme vision problems that cannot be corrected with spectacle lenses; With certain conditions of anisometropia; With certain conditions of keratoconus. 2004-25 SPECILV\ � A UnitedHealth Group Company spectera, Inc. administers prepaid vision care underwritten by American General Life Insurance Company Monroe County Government SERVICE FREQUENCY EXAM 12 MONTHS LENSES 12 MONTHS FRAMES 24 MONTHS FULLY INSURED 100% VOLUNTARY OPTION 1 - 12/12/24 $4.70 Employee $ 15 Copay-Exam $9.10 Employee + Spouse $ 30 Copay-Materials $9.50 Employee + Child(ren) $1 5.10 Employee + Family January 1, 2004