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Home My WebLink About2008-09-08 08-295 ORDERDate: September 8, 2008 m"o• 08 295 Item/Subject: Order, Amending the Revised personnel Rules and Regulations by adding Secdan ]J.S, Supplemental Voluntary Insurance. Responsible Department: Executive/Human Resources Commentary: This Order would amend the Cllys Personnel Rules and Regulations by adding a new section regarding Supplemental Voluntary Insurance. Voluntary Insurance products have become increasingly popular In work places as a way to enhance an employer's benefits package without Incurring employer cost. If elected, these coveragesare pald 100% by participating employees. Covemgesavailable indude accldentinwrance, critical care/specified health event insurance, and cancer insurance. With the assistance of the HRH/Dunlap Agency of Bangor, proposals were requested for the above referenced coverage. Five proposals were received and ARRC and UNUM were selected by the Health Insurance Advisory Committee as the top responders. Interviews were then held with each firm, and AFLAC was the unanimous selection to provide the insurance program. AFi isaleaderinthevoluntaryimurancemarket and has a signifiant statewide presence in municipalities and county government as well as non-profit and private sectororganintions. This benefit would complement the City's exisfinq voluntary insurance offerings which include group life insurance and group dental insurance. The Government Operations Committee reviewed this proposed amendment and selection of AFLAC and voted unanimously to recommend approval to the City Council Department Head Recommend approval. , M6 p i/ City Manager A ociatad Information: Order and Background Memorandum Legal Approval: _](_ Passage _ First Reading Referral Finance Page_Of_ F ' A54gn c to Coundlor DIES ;co September 8, 2808 CITY OF BANGOR (TITLE.) ORDER, Amending the Revised personnel Rules and Regulations by adding Section 7.7.5, Supplemental Voluntary Insurance. BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT The Revised Personnel Rules and Regulations are hereby amended by adding a new section 7.7.5, Supplemental Voluntary Insurance as follows: 7.7.5 Supplemental Voluntary Insurance The City offers group voluntary insurance coverage to employees whose positions are Included under Section 3.2, Regular Ernployment (Full time, Part time and Contract employment). This coverage generally includes such areas as personal accident, cancer, crtical care/specified health evert, and other similar types of insurance. If selected, this insurance begins in the first full month following the employee's date of hire. The cast of any coverage(s) selected shall he paid for by participating employees and this coverage is available to dependents and/or spouse Participation in this berrefd is not automatic, and employees must initiate a request to became enrolled. Further specific information regarding coverage and costs is available through the Human Resources Office. AND BE IT FORMER ORDERED That American Family We Assurance Company (AFIAC)'s hereby selected and approved to provide voluntary insurance coverage as descdbed above. (Pa]Y.EI &isles ud H g§ tiros by AMii sea vemec.r Lvsui.uce To: Goverment Operations Committee From: Bob Farrar, Assistant City Manager/Human Resources Director Subject: voluntary Insurance Benefits Date: August 21, 2008 For some fime, Mere has been imemst expressed by employees regarding whether the City would be willing to offer voluntary Insurance benefits through payroll deduction. voluntary (100% employee paid) insurance products have become increesirgly popular in workplaces as a way to enhance an employer's benefits package without motoring employer cost. While Mere are a number of produclai and benefits mailable, this discussion and osal s limited to three areas: Accident, Crincel Cam/Specified Health Eventtyann and Cancer Insurance programs. These are benefits that are paid in addition to any available health insurance benefls. With the assistance of Dunlap/HRH of Bangor, proposals were requested regarding the above noted coverage. Five responses were received from the following providers: AFLAC, Allstate, Colonial, Trusbnark, and UNUM. The City's Hath Insurance Advisory committee reviewed the five responses with Dunlap/HRH, and selected AFLAC and UNUM as the two top responders. These providers were chosen based upon a variety of factors including benefits offered, coverage provided, price, etc. Last month, an Interview panel consisting of representatives from Airport, Fire, Bass park, Parks and Recreation, City Manager's Office/Human Resources, as well as Account Executive Donna Ingraham from Dunlap/HRH, met with the two finalists. Following the Interviews and presentations, the Committee uanimously selected AFLAC as the preferred provider. AFLAC's strengths included local and personalized service, fast claim tum -around time, no statute of limitations on filing claims, no preexisting condition IimRatbns, premiums taken on a pre-tax basis and their reputation as a leader In the voluntary benefits market. Additionally, AFLAC insures a large number of municipalities, non-profit and private sector oganUabons statewide and Meir references were very strong. Based upon the interest In making these Insurance products available (at participating employee's expense) and the results of the process to date, I am recommending that the City's Personnel Rules and Regulations be amended to include language that will permit Mese voluntary Insurance products. The City already provides other benefits on a voluntary basis to its employees including group dental insurance and group life insurance. These new products would further enhance our offerings and would provide regular part-time employees, who are currently ineligible to participate in group health insurance, an 08 295 opportunity to elect coverages) which could help with health related expenses. This appears to be a nice opportunity to add a benefit M a very minimal City cast. If approved by the Government Operations Committee, an amendment to the Personnel Rules and Regulations would be prepared for City Council consideration at the September 8°' meeting. Should you have any questions or need additional Information prior to Tuesdays meeting, please feel free to contM me at your convenience. a: Donna Ingraham, HRWDunlap Agency n8 295 AFLAC Referrals somemet county Kennebec County Aroostook County Penobscot County Piscamgnis County City of Brewer Cityof Cariboo City of caws City of Wmtbmok City ofLewiatan City of Auburn Towo ofMilford Town of Newport TownofHoul on Town of Washburn TOwm of MiBinockat Town of East Milliooeket Town of Lboeohm Northeast Cardiology Asoociates Northern hinter Medical Center SL Joseph's Medical Center Penobscot Valley Hospital Mayo Regional Hospital Houlton Regional Hospital MBltaocbet Regional Respond Paradb Shop N Save Martinis Heating Northeast Cardiology Associates Peaquh Cap Smaller Hydro Electric Central Maine Transport JH Raymond Emery Lee Construction Timberland Trucking Gerald relative Trucking Soderberg Construction RF Jordan Construction Evergreen Manufacturing LLC Camden National Book Northeast Bank Katandin Trust nanny's Walmart oa :195 City of Bangor AFLAC Weekly Rates *Personal Accident Indemnity, Level 2 Age: Individual Emn and Spouse Emu and Children Family 18-64 $5.56 $7.45 $8.10 $9.99 *Rates are subject to pre-tax *Cancer indemnity Insurance Age: Employee and Children Employee, Spouse and Children 18-35 $3.72 $6.90 3645 $5.40 $9.72 46-55 $7.62 $14.15 56-70 $10.05 $19.77 *Specified Health Event, Plan 2 Age: Individual Emp and Shouse Emp and Children Family 18-35: $3.78 $7.29 $6.48 $8.28 36-45: $5.40 $9.48 $7.62 $10.50 46-55: $7.35 $12.75 $9.81 $14.04 56-70: $9.48 $17.79 $12.90 $19.29 *Rates are subject to pre-tax