Broward County Commission Regular Meeting
Director's Name: George Tablack
Department: Finance and Administrative Services Division: Human Resources
Information
Requested Action
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A. MOTION TO APPROVE Third Amendment to Agreement between Broward County and CompBenefits Company, for Group Dental Health Maintenance Organization (DHMO) Insurance (RFP No. GEN2116450P2), for Broward County Employees, providing for a one-year extension of the current DHMO Group Insurance Agreement from January 1, 2025 through December 31, 2025; and authorize the Mayor and Clerk to execute same.
ACTION: (T-11:08 AM) Approved.
VOTE: 9-0.
B. MOTION TO APPROVE Fourth Amendment to Agreement between Broward County and UnitedHealthcare Insurance Company, for Group Dental Preferred Provider Organization (PPO) Insurance (RFP No. GEN2116451P2), for Broward County Employees, providing for a one-year extension of the current PPO Group Dental Insurance Agreement from January 1, 2025 through December 31, 2025; and authorize the Mayor and Clerk to execute same.
ACTION: (T-11:08 AM) Approved.
VOTE: 9-0.
C. MOTION TO APPROVE Third Amendment to Agreement between Broward County and U.S. Legal Services, Inc., for Group Prepaid Legal Insurance Services for Broward County Employees (RFP No. OPN2116245P2), providing for a six-month extension of the current Prepaid Legal Insurance Agreement from July 1, 2024 to December 31, 2024; and authorize the Mayor and Clerk to execute same.
ACTION: (T-11:08 AM) Approved.
VOTE: 9-0.
D. MOTION TO APPROVE Second Amendment to Agreement between Broward County and Standard Insurance Company, for Group Long Term Disability Insurance (RFP No. GEN2118079P2), increasing the premium rates by 9% and exercising the Second Renewal Term commencing July 1, 2024, and now ending December 31, 2025; and authorize the Mayor and Clerk to execute same.
ACTION: (T-11:08 AM) Approved.
VOTE: 9-0.
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Why Action is Necessary
In accordance with Broward County Administrative Code Section 21.53, Duration of Contracts, a County contract shall not exceed five years in duration without the express approval of the Board.
What Action Accomplishes
Motions A and B: Extend the current agreement terms for employee-paid Dental DHMO and Dental PPO coverages for one year through December 31, 2025.
Motion C: Extends the current agreement term for employee-paid Prepaid Legal Insurance Services for six months through December 31, 2025.
Motion D: Amends the Agreement to modify the premium rates for the Second Renewal Term (July 1, 2024 to June 30, 2025) and to extend the term to December 31, 2025 to bring the Agreement in line with the calendar year.
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Previous Action Taken
None.
Summary Explanation/Background
THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT AND THE HUMAN RESOURCES DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTIONS.
Motion A: On September 10, 2019 (Item No. 22), the Board approved the Agreement between Broward County and CompBenefits Company for Group Dental Health Maintenance Organization insurance effective January 1, 2020 through December 31, 2022, with two one-year renewal terms.
On May 12, 2022, the Director of Purchasing approved the First Amendment to the Agreement exercising the First Renewal Term effective January 1, 2023 through December 31, 2023.
On August 14, 2023, the Director of Purchasing approved the Second Amendment to the Agreement exercising the First Renewal Term effective January 1, 2024 through December 31, 2024.
Motion B: On June 11, 2019 (Item No. 75), the Board authorized the Director of Purchasing to execute the final negotiated agreement between Broward County and UnitedHealthcare Insurance Company for Group Dental Preferred Provider Organization Insurance effective January 1, 2020 through December 31, 2021, with three one-year renewal terms.
On July 26, 2021, the Director of Purchasing approved the First Amendment to the Agreement exercising the First Renewal Term effective January 1, 2022 through December 31, 2022.
On July 20, 2022, the Director of Purchasing approved the Second Amendment to the Agreement exercising the Second Renewal Term effective January 1, 2023 through December 31, 2023.
On August 14, 2023, the Director of Purchasing approved the Third Amendment to the Agreement exercising the Third Renewal Term effective January 1, 2024 through December 31, 2024.
Motions A and B seek a one-year extension from January 1, 2025 through December 31, 2025 with no change in terms or premium rates. This will provide staff additional time to complete five procurements already in process for January 1, 2025.
Motion C: On October 22, 2018, the Director of Purchasing approved an Agreement between Broward County and U.S. Legal Services, Inc. for Group Prepaid Legal Insurance Services effective January 1, 2019 through December 31, 2021, with two one-year renewal terms.
On June 14, 2021, the Director of Purchasing approved the First Amendment to the Agreement exercising the First Renewal Term effective January 1, 2022 through December 31, 2022.
On April 25, 2022, the Director of Purchasing approved the Second Amendment to the Agreement exercising the Second Renewal Term effective January 1, 2023 through December 31, 2023.
Pursuant to Article 3.2 of the Agreement, the County shall have the right, by and through its Purchasing Director, to extend the then-current term on a month-to-month basis for up to a maximum of six months. The Purchasing Director exercised this right October 17, 2023, thereby extending the contract effective January 1, 2024 through June 30, 2024.
Motion C seeks a six-month extension from July 1, 2024 through December 31, 2024. This will provide staff additional time to complete the RFP process and have a signed agreement in place for open enrollment for calendar year 2025.
Motion D: To prepare for calendar/plan year 2025, staff seeks Board approval to renew the Agreement for Group Long Term Disability Insurance.
On June 16, 2020 (Item No. 34), the Board approved the Agreement between Broward County and Standard Insurance Company for Group Long Term Disability (Agreement) effective July 1, 2020 through June 30, 2022, with one two-year renewal term (First Renewal Term) and a second renewal term of one year (Second Renewal Term).
On April 25, 2022, the Director of Purchasing approved the First Amendment to the Agreement exercising the First Renewal Term effective July 1, 2022 through June 30, 2024, with no increase in rates.
This request to modify the premium rates for the Second Renewal Term and to amend the Agreement (Exhibit 4) to extend the Second Renewal Term for an additional six months to December 31, 2025, is based on Standard Insurance Company providing timely written notice of an intended 30% premium increase supported by Claims to Premium reports. Negotiations ultimately resulted in a 9% increase to rates for the Second Renewal Term. Request to extend for an additional six months is to bring the agreement in line with the calendar year.
Source of Additional Information
David Kahn, Director, Human Resources Division, 954-357-6005
Fiscal Impact
Fiscal Impact/Cost Summary
Dental Health Maintenance Organization (DHMO) Group Dental Insurance has no fiscal impact to the County and is a voluntary plan that is 100% paid by enrolled plan participants.
Preferred Provider Organization (PPO) Group Dental Insurance has no fiscal impact to the County and is a voluntary plan that is 100% paid by enrolled plan participants.
Group Prepaid Legal Insurance has no fiscal impact to the County and is a voluntary plan that is 100% paid by enrolled plan participants.
Group Long Term Disability Insurance has no fiscal impact to the County and is a voluntary plan that is 100% paid by enrolled plan participants.