R-2020-0342 - 11/24/2020 RESOLUTION NO. R-2020-0342
WHEREAS, the City of Round Rock (the "City") previously accepted a proposal from Aetna
Life Insurance Company ("Aetna") for the provision of vison insurance benefits, and
WHEREAS, the City desires to renew said vision insurance benefits for an additional two (2)
years,Now Therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS:
That the Council hereby authorizes renewal of vision insurance benefits with Aetna for the
guarantee period of January 1, 2021 through December 31, 2022 as set forth in the renewal document
from Aetna attached as Exhibit"A."
The City Council hereby finds and declares that written notice of the date, hour, place and
subject of the meeting at which this Resolution was adopted was posted and that such meeting was
open to the public as required by law at all times during which this Resolution and the subject matter
hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act,
Chapter 551, Texas Government Code, as amended.
RESOLVED this 24th day of November, 2020.
CRAIG RAN, Mayor
City o oun Rock, Texas
ATTEST:
�-v�OL
MEAGAN S KS, D putt' City Clerk
0112.20202;00460047/ss2
EXHIBIT
Vision Renewal/Proposed Rates "A"
CITY OF ROUND ROCK Aetna Life Insurance Company
January 1, 2021 through December 31, 2022 Control Number-819919
• This exhibit outlines your Renewal/Proposed Rates effective January 1,2021.
• This renewal offer covers a 2-year period with rate increase of 0.0%effective on January 1, 2021 through De
Vision
Current/Assumed Proposed/Renewal
Coverage Categories Employees Current Rates Rates % Change
Associate Only 417 $6.36 $6.36 0.0%
Associate& Other Adult 112 $12.06 $12.06 0.0%
Associate& Chid ren 135 $12.70 $12.70 0.0%
Associate& Family 212 $18.68 $18.68 0.0%
Total PEPM 876 $11.05 $11.05 0.0%
Monthly Totals ($) 876 $9,678 $9,678 0.0%
Financial Conditions
Rates may be adjusted if:
> covered population changes by 15%or more; current enrolled lives are shown above;
> legislation or regulation is enacted that affect the benefits payable, eligibility
or contractual provisions;
> there is any other material change in the condition under which the plan operates.
> Commissions payable to a broker or consultant change.
Terms:
> Rates include commissions of 10% of premium.
> For Voluntary plans, where permitted by state law, late entrant rules will be applied at
annual enrollment(i.e., no true"open enrollment")as well as throughout the year.
> The Affordable Care Act(ACA)imposes several new fees/assessments, including
the Health Insurance Providers Fee (the"Fee"). The Fee became effective on January 1, 2014.
The Fee will be suspended for 2017, but reinstated starting in 2018.
This recurring annual industry fee is assessed based on each insurer's share of the fully insured market.
A total of$8.0 billion was collected across the industry for 2014. The total assessment increases
each year, to an estimated$14.3 billion in 2018 and will then increase at the rate of premium growth
thereafter. This rate quote includes,where permitted, and as applicable, an estimated proportionate
allocation of expenses associated with the Fee. Aetna reserves the right to modify these rates,
or and as applicable, an estimated proportionate allocation of expenses associated with the Fee.
Aetna reserves the right to modify these rates, or otherwise recoup such Fee based on subsequent
state regulatory approval, future regulatory guidance or if estimates are materially insufficient.
"Aetna" is the brand name used for products and services provided by one or more of the
Aetna group of subsidiary companies. Vision is underwritten by Aetna Life Insurance Company.
.Proprietary www.aetna.com Pagel