PRM Health Trust FY 16-17GArthur J. Gallagher & Co.
August 1, 2016
India Riedel
Finance Director
City of Okeechobee
55 SE 3rd Avenue
Okeechobee, FL 34974
Re: Group Health Rates for Plan Year 2016 - 2017
Dear India,
We are pleased to provide you with your Group Health Rates for the new plan year beginning October 1, 2016. The
rates illustrated below represent an increase of 14:1% over your current medical rate. The increase in the medical
rate is 5.9% higher than the pool average due to a loss ratio of 132.2 %. There is no increase in the Dental, Vision,
Life, AD &D, Dependent Life, Short Term and Long Term Disability plan rates. We believe that you will find this
renewal very reasonable in light of current market conditions.
Medical — PRM Plan BlueOntions 03748
Medical — PRM Plan Blue0 tions 05901
Funding Rates
Coverage
Medical
Medical COBRA
Medical Reduced Retiree
Employee
$741.52
$756.35
$564.22
Additional for Spouse
$1,109.76
$738.74
$1,131.96
$753.51
$776.80
N/A
Additional for Child
Additional for Family
$1,619.76
$1,652.16
N/A
Medical — PRM Plan Blue0 tions 05901
Gallagher Benefit Services, Inc.
One Boca Place 1 2255 Glades Road, Suite 200E
Boca Raton, FL 33431
p 561.995.6706
aig.com
Funding Rates
Coverage
Medical
Medical COBRA
Medical Reduced Retiree
Employee
$514.06
$524.34
$391.10
Additional for Spouse
$769.28
$512.10
$784.67
$522.34
$538.46
N/A
Additional for Child
Additional for Family_
$1,122.84
$1,145.30
N/A
Gallagher Benefit Services, Inc.
One Boca Place 1 2255 Glades Road, Suite 200E
Boca Raton, FL 33431
p 561.995.6706
aig.com
G
Dental
Hi PPO
Low PPO
Coverage
Funding Rate
Funding Rate
$28.62
Employee
$35.78
Employee Familj
$93.37
$74.70
Vision - NVA
Coverage
Funding Rate J
Employee
$5.24
Employee Spouse
$9.83
Employee Child renI
$8.18
Employee Family
$16.19
We appreciate the opportunity to serve you and your employees and look forward to working with you over the new
plan year.
Should you have any questions, please contact Yvonne Blackford or me at 561- 995 -6706.
Sincerely,
Paul Hebert
Area Vice President
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COUNCIL ACTION - DISCUSSION - VOTE
JULY 19, 2016 - REGULAR MEETING - PAGE 15 OF 16
COUNCIL ACTION - DISCUSSION - VOTE 1
KIRK - YEA CHANDLER - YEA O'CONNOR - YEA
RITTER - YEA WATFORD - YEA MOTION To AMEND CARRIED.
VOTE ON MOTION AS AMENDED:
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City of Okeechobee Exhibit 14
July 19, 2016
Memo
Date: for July 19, 2016 meeting
TO: Mayor and City Council
FR: Admin Marcos Montes De Oca and Finance Dept
RE: PRM Group Health Insurance
Group Health:
The City's current premium structure:
Employee Only $ 649.66 Empl & Spouse $1,621.94
Empl & child(ren) $1,296.92 Empl Family $2,068.76
The City has had another year of large payout of benefits for our employees and
dependents. ($172.00 paid out for every $100.00 premium). As per the bylaws of the
PRM group the maximum premiums will increase 6% over the Group. The Group (PRM
members) experience base rating is @ a 9% increase effective 10/1/16. Therefore, the
current PPO 3748 plan premium increase for this fiscal year is a 14.1%, or a $66,140
increase.
After detailed review of other offered plans to minimize the City's increase in cost, the cost
savings would be directly shifted to the employee by an increase in co -pays, deductibles
and /or major provider list changes or by switching to an HMO product.
Conclusions:
Continue to provide the existing insurance plan PPO 03748 to employees, with the City
contributing $100% premium for the employee. Currently the City has provided $70.00 per
month towards dependent HI premiums. Due to the substantial increases in cost to the
employee the suggestion is to amend the amount to $150 per month. (Add'I cost $7,560)
2016/2017 Premium for PPO03748
55 SE Third Avenue, Okeechobee, FL 34974
(863) 763 -3372 / (863) 763 -1686 Fax
Premium
City Cost
Per Employee per
Month
Deduction
per
Employee
Pay Check
Employee Only
$741.52
$741.52
$0.00
Add'I for Spouse
$1,109.76
$150.00
$442.95
Add'I for Child(ren)
738.74
$150.00
$271.73
Add'I for Family
$1,619.76
$150.00
$678.35
55 SE Third Avenue, Okeechobee, FL 34974
(863) 763 -3372 / (863) 763 -1686 Fax