It is recommended that the Mayor and City Commission of the City of Miami Beach, Florida, authorize the issuance of Invitation to Negotiate (ITN) 2023-260-WG for the administration of the ancillary health and related benefits for employees, retirees, and dependents.

On October 1, 2016, pursuant to ITN 2016-084-WG, the City entered into agreements with Cigna Health and Life Insurance Company for the administration of the ancillary health and related benefits offered to employees, retirees, and dependents, including dental plan, short and long-term disability insurance, FMLA administration, and life and accidental death insurance. The existing Agreements are scheduled to expire September 30, 2023.

Accordingly, the purpose of the ITN is to seek proposals from qualified firms with whom the City can negotiate with for replacement agreements. 

The City is seeking proposals from qualified firms for the administration of the City’s ancillary health and related benefits for employees, retirees, and their dependents, which include:

•           Plan A – Dental Health Plan.

•           Plan B – Disability Plan and FMLA Administration.

•           Plan C – Group Life & Accidental Death and Dismemberment.  

It is the intent of this ITN to evaluate, score, and rank, plans separately, as grouped above (e.g., Plans A, B, or C). Each proposal must clearly indicate for which plan the proposal(s) is being submitted. Bidders may submit proposals for more than one plan type, provided that the Bidder submits a separate proposal for each plan option the Bidder is interested in pursuing. For example, those interested in submitting proposals for Plan A (Group Dental) and Plan B (Disability Plan & FMLA Administration), shall submit two (2) separate proposals; one for Plan A and another for Plan B.

The selection of firm(s) with whom the City may enter into negotiations shall be based on the criteria established in the draft ITN attached. Following the receipt of proposals, an Evaluation Committee will review proposals in accordance with the criteria established in the ITN.

PLAN A: GROUP DENTAL PLAN 

For active employees, the City pays 50% for each tier of the fully-insured DHMO rates or 50% of the self-funded DPPO rates. The Administrative Services Only (ASO) Fee for the DPPO self-insured group dental plan is $3.22 PEPM. This fee represents the charges for paying claims and performing other standard administrative services. 

The financial impact of the group dental plan is $310,000.00 annually. 

PLAN B: GROUP DISABILITY AND FMLA ADMINISTRATION 

The City provides a short-term (STD) and long-term disability (LTD) plan for employees on a voluntary basis. The cost of STD and LTD coverage is based on the employee’s age and annual earnings prior to their disability. The cost of these coverages is fully borne by the employee. 

The City provides and pays for a long-term (LTD) disability policy for currently thirteen (13) participants in the City’s Defined Contribution Retirement Plan 401(a), $32,000.00 annually. 

The current administrative fee for managing the FMLA program is $1.49 per employee per month (PEPM), which the City pays $40,000.00 annually. 

PLAN C: GROUP TERM LIFE AND ACCIDENTAL DEATH & DISMEMBERMENT PLAN 

Active employees receive Basic Life and AD&D. The City pays a portion of the premium, $120,000.00 annually. 

Employees may choose to purchase Supplemental Life and Dependent Life insurance. The cost of these coverages is fully borne by the employee. 

Retirees may choose to purchase Basic Life and Supplemental Life insurance. The cost of these coverages is fully borne by the retiree.

I recommend that the Mayor and Commission of the City of Miami Beach, Florida, authorize the issuance of ITN 2023-260-WG for the administration of the ancillary health and related benefits for employees, retirees, and dependents.