North Miami Beach Approves Self-Funded Health Insurance Plan
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Meeting Type:
City Council
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Meeting Date:
04/16/2024
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Recording Published:
04/16/2024
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Duration:
290 Minutes
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State:
Florida
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County:
Miami-Dade County
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Towns:
North Miami Beach
- Meeting Overview:
In an effort towards cost savings and increased control over employee health benefits, the North Miami Beach City Council has voted to transition the city’s health insurance plan from a fully insured arrangement to a self-funded one. Eric Brewer, a representative from Corporate Synergies, presented the concept, emphasizing that the city, by self-funding, would assume the financial risk for the medical plan, rather than paying a fixed fee to an insurer like Etna. This change aims to maintain the same level of benefit plan designs for employees and their families while potentially achieving long-term affordability for the plan’s members.
The feasibility study brought forth by Brewer introduced the council to the benefits and risks associated with self-funding. The council engaged in a thorough discussion on the matter, considering the financial implications and the level of control and flexibility such a move could provide. The advantages of a self-funded plan were highlighted, such as plan customization, long-term cost mitigation, and retaining any interest income as the plan sponsor. However, the council also weighed the disadvantages, including the risk of claims, the need for sufficient cash flow, and the unpredictability of claim fluctuations.
The council was particularly interested in understanding the financial risks and the potential impact on the city’s budget and employees’ benefits. Questions about the unpredictability of claim fluctuations and the additional fiduciary responsibilities were raised during the discussion. In the end, the council voted to proceed with further market analysis and to return with actual numbers and a more definite recommendation.
The council also approved the hiring of a law firm to represent the city. The law firm, represented by Mr. Geller, assured the council that despite advertising availability for four days a week, they are committed to providing necessary support and could potentially be present in the city five days a week as workload dictates. Concerns about the part-time nature of the contract were expressed, particularly the transition from a five-day to a four-day position for the charter officer role. The council debated these terms and, after a discussion about the importance of full-time presence and availability in the city attorney’s office, voted in favor of the agreement.
Another major topic was the ratification of the collective bargaining agreement with the American Federation of State, County, and Municipal Employees (AFSCME) local 3293 bargaining unit. The agreement, presented by Human Resources Director B. Bet Freeman, will cover fiscal years 2023 through 2026, following the expiration of the most recent contract.
The “Smart City NMB” initiative was a focal point of the meeting, with presentations detailing plans to enhance the quality of life and economic growth through smart technology. This includes expanding public Wi-Fi, partnering with local businesses and educational institutions, and implementing digital inclusion programs. The city’s Chief Information Officer updated on various initiatives, such as wireless implementations in city facilities, smart benches in parks, a transparency portal, and the new mobile app “Fix It NMB.”
The council also addressed public concerns regarding city services. Residents voiced the need for increased police presence, better traffic and bus route management, and questioned the effectiveness and cost of the city’s recycling programs. Furthermore, discussions on the hiring and cost of the city attorney and the status of the police chief’s suspension highlighted the complexities of governance and public service delivery.
Updates on city initiatives were provided, including a new weekly recycling program, small business month, and a youth financial literacy workshop. The council also celebrated upcoming holidays, with members extending well-wishes for Passover and discussing community events such as the celebration of Haiti and the delivery of love baskets.
The meeting concluded with a unanimous appointment to the Commission on Aging Senior Citizen Advisory Board and discussions on remote participation effectiveness, special events policy and procedures, and the issuance of proclamations and keys to the city.
In zoning and urban development, the council passed an ordinance to regulate the installation and maintenance of city street trees. Concerns about hedge and shrub regulations were addressed, with the council considering amendments to the ordinance for better safety and visibility.
The City Council’s efforts to ensure accuracy in agreements were evident when they discussed a discrepancy in the end date for the use of facilities with the North Miami Beach Youth Athletic Club. The resolution was approved with the correct end date after the mayor stressed the importance of correct information for decision-making.
Evan S. Piper
City Council Officials:
Jay R. Chernoff, Daniela Jean, Fortuna Smukler, McKenzie Fleurimond, Phyllis Smith, Michael Joseph
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Meeting Type:
City Council
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Meeting Date:
04/16/2024
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Recording Published:
04/16/2024
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Duration:
290 Minutes
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Notability Score:
Routine
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State:
Florida
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County:
Miami-Dade County
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Towns:
North Miami Beach
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