Agenda 09/27/2016 Item #16E 1 16.E.1
09/27/2016
EXECUTIVE SUMMARY
Recommendation to award Group Vision insurance to Vision Service Plan (VSP) for a two year
period effective January 1, 2017 in the estimated annual amount of $57,857.76.
OBJECTIVE: To provide a group vision plan to employees and their eligible dependents as part of a
comprehensive, competitive group benefits program.
CONSIDERATIONS: The Board of Commissioners through the Risk Management Division
administers the group benefits program for the County Manager's agency and participating Constitutional
Officers. A group vision plan is offered as part of the program. Coverage is provided under a PPO
arrangement with a $10 co-pay for exams and a discount for frames and lenses. Vision Service Plan is the
current carrier.
In anticipation of the January 1, 2017 renewal, staff directed the County's contracted benefits broker,
Willis, Inc., to seek proposals from interested carriers. Four proposals were received. Willis then
performed an analysis of each carrier's proposal to review price; multiple year price guarantees; coverage
terms; provider network size and composition; and out of network reimbursement rates.
A price ranking of each firm from lowest to highest price was prepared. Davis Vision proposed a rate
commensurate with current program costs. VSP and EyeMed proposed rates that are 29% above current
program costs. Superior proposed rates that are 148% above current program costs. VSP and Superior
offered a two year rate guarantee. Davis and EyeMed offered a four year rate guarantee.
Although Davis Vision presented the lowest rates, the network of providers was not as broad as the
current carrier, VSP. Willis prepared a disruption analysis and determined that the Davis Vision network
would negatively affect 37% of existing members, requiring that they find a new doctor. Staff requested
that Davis Vision attempt to address the disruption issue via provider recruitment; however, this attempt
was not successful.
Therefore, based upon the considerations of price, coverage terms, provider network, and member
disruption, staff recommends the selection of VSP. There are no other changes to the terms and conditions
of the program.
FISCAL IMPACT: The estimated cost of the program in calendar year 2017 based upon an average
enrollment of 2,124 employees is $57,857.76. Final cost is dependent upon actual enrollment. Rates are
guaranteed for a two year period. Coverage commences on January 1, 2017. Sufficient funds are available
within Fund 517, Group Health and Life Insurance for this purchase.
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this
item.
LEGAL CONSIDERATIONS: This item is approved as to form and legality, and requires majority
vote for Board approval.-SRT
RECOMMENDATION: That the Board of County Commissioners approves the purchase of Group
Vision coverage from Vision Service Plan with a two year rate guarantee effective January 1, 2017.
Prepared by: Jeff Walker. CPCU, ARM, Division Director, Risk Management
Packet Pg. 1387
16.E.1
09/27/2016
ATTACHMENT(S)
1. Vision Cost Summary 2017 Willis Towers Watson (PDF)
2. Willis Towers Watson Vision 2017 CCG Marketing Analysis (PDF)
I Packet Pg. 1388 I
16.E.1
a
09/27/2016
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COLLIER COUNTY
0 Board of County Commissioners
Item Number: 16.E.1
Item Summary: Recommendation to award Group Vision insurance to Vision Service Plan (VSP)
for a two year period effective January 1, 2017 in the estimated annual amount of $57,857.76 .
Meeting Date: 09/27/2016
Prepared by:
Title: Division Director-Risk Management—Risk Management
Name: Jeff Walker
08/16/2016 8:06 AM
Submitted by:
Title: Division Director-Risk Management—Risk Management
Name: Jeff Walker
08/16/2016 8:06 AM
Approved By:
Review:
Administrative Services Department Pat Pochopin Level 1 Division Reviewer Completed 08/16/2016 8:31 AM
Administrative Services Department Len Price Level 2 Division Administrator Review Completed 09/07/2016 7:03 PM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 09/08/2016 2:47 PM
Office of Management and Budget Laura Wells Level 3 OMB 1st Reviewer 1-4 Completed 09/08/2016 4:11 PM
County Attorneys Office Jeffrey A.Klatzkow Level 3 County Attorneys Office Review Completed 09/14/2016 10:42 AM
County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 09/18/2016 10:03 PM
Board of County Commissioners MaryJo Brock Meeting Pending 09/27/2016 9:00 AM
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I Packet Pg. 1389 I
Collier County Government
Vision Cost Summary
CURRENT Vision
VSP $44,859
Estimated
Annual Premium Variance from Current
PROPOSED Vision Dollar Percent Rank Guarantee
VSP - Renewal $57,858 $12,999 29.0%2 2 years
Davis Vision $44,669 ($190)-0.4%1 4 years
EyeMed $57,858 $12,999 29.0%2 4 years
Superior $111,395 $66,536 148.3%4 2 years
Vision Cost Summary Page 1
Collier County Government
01/01/2017 Vision Marketing Analysis
VSP Davis Vision EyeMed Superior
Plan Highlights Current / Renewal
Exam Plus - Choice Network
Proposed
Hybrid Affinity Discount Program
Proposed
Insight Plan CX, Fixed Fee Proposed
General Plan Information In Network Out of Network In Network Out of Network In Network Out of Network In Network Out of Network
Examination Copay $10 Up to $45 reimbursed
after copay $10 Up to $45
reimbursement $10 Up to $45 (no copay
applies)$10
After copay:
Ophthalmologist - Up
to $33 reimb
Optometrist - Up to
$28 reimb
Materials Copay NA NA N/A NA NA NA $25 Varies, see below
Benefit Frequency
Examinations Once every 12 months
Lenses Once every 24 months
Frames Once every 24 months
Contacts (in lieu of Lenses and Frames)Once every 24 months
Plan Provisions Member Pays Member Pays Member Pays Member Pays Plan Reimburses
After Copay
Single Vision Lens $45 $50 $25 Up to $28
Bifocal Lens $65 $70 $25 Up to $40
Trifocal Lens $95 $105 $25 Up to $53
Frames 35% off provider's U&C 35% off retail price $25 copay, $60
allowance Up to $30
Contacts
Medically Necessary Not covered $0 copay Up to $210, no copay
Elective (fitting follow up & lenses)
15% off conventional
contacts, 0% off
disposables
$0 copay, $95
allowance Up to $80, no copay
Contact Fitting Fee Not covered
Standard: $30 copay
Specialty: $30 copay,
$50 allowance
Not covered
Once every 12 months
NA
NA
NA
Not covered
Not covered
Once every 12 months
N/A
N/A
N/A
Not covered
15% off provider's U&C Not coveredNot covered15% discount
Once every 12 months
NA
NA
NA
$10 copay, then 20%
discount off complete
pairs of eyeglasses
Not covered
Vision Page 1
Collier County Government
01/01/2017 Vision Marketing Analysis
VSP Davis Vision EyeMed Superior
Plan Highlights Current / Renewal
Exam Plus - Choice Network
Proposed
Hybrid Affinity Discount Program
Proposed
Insight Plan CX, Fixed Fee Proposed
Lens Options
Standard Progressive $65 $135
Covered at provider's
standard tri-focal lens
level
Up to $53
UV Coating $15 $15 20% discount
Tint (Solid & Gradient)$15 $15 20% discount
Scratch Resistance $15 $15 20% discount
Basic Polycarbonate $35 $40 20% discount
Standard Anti-Reflective $45 $45 20% discount
Other Services
Corrective Vision Services (e.g.
Laser Surgery)
Average 15-20% off or
5% off promotional
prices
Not covered 25% off or 5% off
promotional prices Not covered
15% off retail price or
5% off promotional
price
Not covered 15%-50% off or 5% off
promotional pricing Not covered
Diabetic EyeCare Program Included, Type 1 and
Type 2 diabetes Not covered Diabetic Outreach
Program included Not covered Diabetic Care Rider
included Not covered Not covered Not covered
Eye Health Management
program Included Not covered Eye Health & Wellness
Program included Not covered Amplifon Hearing
Health Care included Not covered Not covered Not covered
Network
Independent Practitioners Yes NA Yes NA Yes NA Yes NA
Retail Chain Stores Affiliate providers NA Yes NA Yes NA Yes NA
PREMIUM ANALYSIS Enrolled Current Renewal Two Tier One Tier Two Tier Two Tier
Per Employee Per Month 791 $1.76 $2.27 $0.83 $2.27 $1.08 $2.13
Family 1333 $1.76 $2.27 $2.30 $2.27 $2.97 $5.70
Monthly Premium 2124 $3,738.24 $4,821.48 $3,722.43 $4,821.48 $4,813.29 $9,282.93
Annual Premium $44,858.88 $57,857.76 $44,669.16 $57,857.76 $57,759.48 $111,395.16
$ Difference in Current $12,998.88 ($189.72)$12,998.88 $12,900.60 $66,536.28
% Difference In Current 29.0%-0.4%29.0%28.8%148.3%
Not coveredNot covered20% discount Not covered
Not covered
Vision Page 2
Collier County Government
01/01/2017 Vision Marketing Analysis
VSP Davis Vision EyeMed Superior
Plan Highlights Current / Renewal
Exam Plus - Choice Network
Proposed
Hybrid Affinity Discount Program
Proposed
Insight Plan CX, Fixed Fee Proposed
Rate Guarantee 2 years
Contribution Requirement Employer paid
Participation Requirement 10 enrolled lives
Notes/Comments
Actual rates will be based on final enrollment.
THIS BENEFIT SUMMARY IS FOR ILLUSTRATION PURPOSES ONLY.
This insurance proposal is not to be construed as an exact or complete analysis of the policies nor as legal evidence of insurance. The provisions of the actual policies will prevail.
4 years
Employer paid
None
4 years
80% or more Employer paid -OR- Bundled with
group medical or dental
10 enrolled employees100%
3 year contract from 1/1/16-12/31/18
2 years
Employer paid
Vision Page 3
Collier County Government
01/01/2017 Vision Marketing Analysis
VSP Davis Vision EyeMed Superior
Plan Highlights Current / Renewal
Exam Plus - Choice Network
Proposed
Hybrid Affinity Discount Program
Proposed
Insight Plan CX, Fixed Fee Proposed
THIS INFORMATION IS PROPRIETARY AND SHOULD NOT BE DISTRIBUTED.
Vision Page 4