Forwarded from General Government and Finance Advisory Board (GGAF):

Consideration and possible action to approve a Resolution to award contracts for self-funded medical program administration services, voluntary vision benefits, voluntary life and accidental death and dismemberment insurance coverage, flexible spending account administration, COBRA administration and authorizing the City Manager to enter such contracts on behalf of the City -- Tadd Phillips, Director of Human Resources and Organizational Development

A total of 30 proposals for one or more coverages were received in response to the City’s competitively advertised Request for Proposals (RFP) for Employee Health Benefits (including medical, pharmacy benefits management, voluntary vision, voluntary life insurance, benefits advocate, COBRA administration, accidental death & dismemberment, and flexible spending account administration) for the upcoming 2021 coverage year.

Proposals were evaluated extensively by HUB International, the City’s Benefits Consultant Services, Human Resources, and representatives from the Employee Benefits Committee, focusing on services offered including but not limited to plan design, innovative solutions, integrated systems, customer services and claims process, communication strategy, compliance as well as the financial impact. Where possible, coverages were bundled during negotiations to achieve the best value for the City. A summary of the overall scores is attached. 

Based on the overall offering, financial impact on the City and the impact on employee, staff recommends award as follows: 

Program                Recommended Partner

Medical, Pharmacy Benefits Management, Voluntary Vision,

COBRA                     United Healthcare

Administration and Flexible Spending Account Administration

Voluntary Life and Accidental Death & Dismemberment           MetLife

The City anticipates offering competitive benefits to employees while minimizing the financial impact to both employees and the City.  Coverages will be reviewed during the year to evaluate performance, and the City has requested three-year rate guarantees where applicable, saving the cost of processing an RFP, providing continuity in care to employees and allowing the City to establish an ongoing relationship with the provider.

The RFP will not result in an increase for the remaining Fiscal Year 2021, it is anticipated with an estimated savings of $248,000 annually for RX Fixed Rebates, reduction of medical administrative fees all within self-insurance fund budget.  It is also noted that some included services will reduce other expenses in the self-insurance budget.