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Agenda 09/13/2022 Item #16E12 (VSP Vision Insurance 4-year Award)09/13/2022 EXECUTIVE SUMMARY Recommendation to award Group Vision insurance to Vision Service Plan (VSP) for a four (4) year period effective January 1, 2023. 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. Vision Service Plan is the current carrier. Coverage is provided under a Preferred Provider Arrangement with the core program that includes a $10 co-pay for exams and a discount for frames and lenses. The Plan also offers a Buy-Up option which includes all core benefits as well as an annual allowance for glasses or contacts. The current agreement ends on December 31, 2022. In anticipation of the January 1, 2023 renewal, staff directed the County’s contracted benefit s broker, Willis Towers Watson, 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. Four proposals were received. A price ranking of each firm from lowest to highest price was prepared. Vision Service Plan (VSP) proposed a rate that is 9% below the current program costs. Additionall y, VSP offered an upgrade to the buy-up option which increases the frames allowance from $150 to $175. EyeMed provided a quote closely matching the County’s current coverage with a rate that is 5% below current program costs. MetLife and United Health Care also submitted responses, however; their quotes were more than 20% greater than the current rates and are deemed uncompetitive. VSP offered the lowest rates and increased the benefits available to members. Finally, the network of providers would remain unchanged. Therefore, based upon these considerations, staff recommends the selection of VSP. FISCAL IMPACT: The estimated cost of the program in calendar year 2023 based upon an average enrollment of 2,371 employees is $177,000. Final cost is dependent upon actual enrollment. Rates are guaranteed for a four-year (4) period. Coverage commences on January 1, 2023. 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 has been reviewed by the County Attorney, raises no legal issues and requires majority vote for approval. -JAK RECOMMENDATION: That the Board approves the purchase of Group Vision coverage from Vision Service Plan with a four (4) year rate guarantee effective January 1, 2023 and authorizes the County Manager or designee to sign the documents necessary to bind coverage. Prepared by: Jeff Walker. CPCU, ARM, Division Director, Risk Management ATTACHMENT(S) 1. 2023 01 CCG VSN Marketing Results VSP_Eyemed (PDF) 16.E.12 Packet Pg. 2923 09/13/2022 COLLIER COUNTY Board of County Commissioners Item Number: 16.E.12 Doc ID: 22951 Item Summary: Recommendation to award Group Vision insurance to Vision Service Plan (VSP) for a four (4) year period effective January 1, 2023. Meeting Date: 09/13/2022 Prepared by: Title: Benefits Analyst – Risk Management Name: Sonja Sweet 08/02/2022 4:22 PM Submitted by: Title: Division Director - Risk Management – Risk Management Name: Jeff Walker 08/02/2022 4:22 PM Approved By: Review: Risk Management Jeff Walker Director Review Completed 08/03/2022 7:59 AM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 08/03/2022 11:38 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 08/04/2022 8:34 AM Office of Management and Budget Susan Usher Additional Reviewer Completed 08/22/2022 1:57 PM County Manager's Office Dan Rodriguez Level 4 County Manager Review Completed 08/30/2022 10:19 AM Board of County Commissioners Geoffrey Willig Meeting Pending 09/13/2022 9:00 AM 16.E.12 Packet Pg. 2924 In-Network Out-of-Network In-Network Out-of-Network In-Network Out-of-Network In-Network Out-of-Network In-Network Out-of-Network In-Network Out-of-Network $10 Copay Up to $45 $0 Copay N/A $10 Copay Up to $45 $0 Copay N/A $10 Copay ($0 at PLUS Providers)Up to $40 $10 Copay ($0 at PLUS Providers)Up to $40 Not covered N/A $10 Copay See Below Not covered N/A $10 Copay See Below Not covered N/A Frames $0 Copay; Lenses $10 Copay See Below 20% discount applied to benefit N/A $150 Frame Allowance (additional $20 for featured frames) 20% discount over allowance Up to $70 20% discount applied to benefit N/A $175 Frame Allowance (additional $20 for featured frames) 20% discount over allowance Up to $70 35% off retail price N/A $150 Frame Allowance (additional $50 allowance at PLUS Providers) 20% discount over allowance Up to $105 N/A Up to $30 N/A Up to $30 $50 N/A Up to $30 N/A Up to $50 N/A Up to $50 $70 N/A Up to $50 N/A Up to $65 N/A Up to $65 $105 N/A Up to $70 N/A $150 Allowance; Fit & Follow Up: Up to $60 Up to $105 N/A $175 Allowance; Fit & Follow Up: Up to $60 Up to $105 N/A $150 Allowance; Fit & Follow Up: Up to $40 15% discount over allowance Up to $105 N/A Covered In Full After Copay Up to $210 N/A Covered In Full After Copay Up to $210 N/A Covered In Full Up to $300 Rates Base BuyUp Current Renewal Current Renewal Employee 1,081 406 $2.04 $2.04 $7.33 $5.20 Family 1,290 462 $2.04 $2.04 $19.93 $14.14 Monthly Premium 2371 868 $4,837 $4,837 $12,184 $8,644 $4,837 $9,904 $5,145 $10,214 Annual Premium $58,042 $58,042 $137,204 $103,727 $58,042 $118,850 $61,743 $122,569 Option Option Total Annual Premium Cost Difference ($) Cost Difference (%) Rate Guarantee (1) Notes This comparison is intended to illustrate the carrier's proposed services and rates (in summary) and should not be relied upon to fully determine benefits and rates. Refer to carrier's renewal/proposal for a complete representation of coverage terms and conditions. Yes - Discounts Available Yes - Discounts Available Covered In Full After Copay Frames and Contacts allowed in same benefit period In-Network ONLY In-Network ONLY Participation Requirement ER Contribution Requirement -- 100%None 100%None 100%100% Eyemed Option Base Buy-Up Once Every Once Every Calendar Year Calendar Year Not covered Calendar Year Not covered Calendar Year (1) Early termination of a contract (multi-year rate guarantees or otherwise) may results in termination or other fee liabilities at termination, please refer to carrier's policy &/or proposal for complete representation of terms and conditions. Frame Allowance (Retail) Lenses Frames Not covered Calendar Year Frames Elective 4 Years Out of Network Benefits are handled as reimbursements. Contact Lens Fit and Follow Up Exam may incur additional charges. Single Vision 20% discount applied to benefit Covered In Full After CopayBifocal Trifocal LASIK Coverage Yes - Discounts Available Yes - Discounts Available -$33,477 -17.15% Necessary Other Benefits In-Network ONLY In-Network ONLY -- Current $195,246 Plan Name 30036242 - Base 30089167 - Buy-Up Examination Calendar Year Not covered Lenses or Contact Lenses Not covered Calendar Year Materials Frequency Once Every Once Every Network VSP Choice VSP Choice Exams 30089167 - Buy-Up VSP Choice Calendar Year Covered In Full After Copay In-Network ONLY Yes - Discounts Available Renewal $161,769 Not covered 20% discount applied to benefit In-Network ONLY Yes - Discounts Available $2.04 $2.04 VSP Current / Renewal VSP Alternate Option 30036242 - Base VSP Choice Once Every Calendar Year Not covered Once Every Not covered Calendar Year Base Buy-up Contact Lenses (in Lieu of Glasses) Includes VSP LightCare 4 Years None 4 Years None 15% off Retail Price Standard Fit & Follow Up: Up to $40 15% discount applied to benefit 15% discount applied to benefit $176,892 -$18,354 -9.40% $5.96 $16.20 100%None 100%None $184,312 -$10,934 -5.60% $1.12 $3.05 $6.86 $16.08 willistowerswatson.com © 2020 Willis Towers Watson. All rights reserved. 16.E.12.a Packet Pg. 2925 Attachment: 2023 01 CCG VSN Marketing Results VSP_Eyemed (22951 : Group Vision Insurance)