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City approves employee benefits renewals; Florida Blue medical plan to continue with 7% guarantee
Summary
Council approved staff recommendations to renew employee medical insurance with Florida Blue (Blue Value Solutions) subject to a 7% guaranteed rate, switch dental and vision to MetLife, and renew life/disability coverages under existing providers.
The Sebastian City Council voted to approve renewal recommendations for employee benefits, including continuing medical coverage with Florida Blue under the Blue Value Solutions (BVS) program and switching dental and vision coverage to MetLife.
Luis Centeno of the Gehring Group, the city’s benefits consultant, presented the renewal package and recommended a 7% renewal for the Florida Blue medical plan tied to BVS engagement metrics. He said the BVS program ties participant engagement to a point system that correlates with the employer premium increase; the initial year produced metrics that supported the 7% guarantee but final reconciliation could change the figure slightly once the BVS run-out completes in mid-August.
The council also approved moving dental and vision from Humana to MetLife. Staff and the benefits committee recommended MetLife after an RFP and finalist evaluation; MetLife’s proposal increased dental annual maximums (base plan $1,000→$1,500; buy-up $1,500→$2,000), reclassified endodontics to a higher coverage category, offered approximately $9,000 in annual savings (about 8%), and multi-year rate caps providing budget certainty.
Short-term disability was adjusted administratively to align anniversary dates and carry a two-year rate guarantee; the negotiated change will add roughly $3,800 to premiums. Life insurance, voluntary life, long-term disability and the employee assistance program were recommended for renewal with Lincoln Financial under existing terms.
Council approved the renewals by roll call. Staff said plan design changes that are required for HSA compliance will raise deductibles to match IRS minimums: single deductible from $1,600 to $1,650 and family from $3,200 to $3,300. Staff noted that the final Florida Blue rate could shift slightly after the final BVS reconciliation but projected the 7% figure as the recommendation.
