SUBJECT
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Motion to approve recommended rates based on material terms for bid FY24-019 for the following Group Medical Insurance Benefit Providers:
1) Group Medical - Blue Cross Blue Shield of Texas
2) COBRA Administration Health Care Services Corp. - Blue Cross Blue Shield of Texas-Payflex
3) Dental Plan - Aetna
4) Flexible Spending Accounts - Payflex
5) Health Savings Accounts Administration - Blue Cross Blue Shield of Texas-HSA Bank
6) Retiree Medicare Advantage (Medical Supplemental, Dental and Vision) - Blue Cross Blue Shield of Texas
7) Retiree Billing - Blue Cross Blue Shield of Texas
The City of Laredo will award a three (3) year initial contract from October 1, 2024 through September 30, 2027 with the City of Laredo retaining the right to renew up to two (2) additional one (1) year renewal periods with the exception of item No. 4) Retiree Medicare Advantage effective January 1, 2025; with a three (3) year guaranteed Administrative Fee rates; COBRA five (5) year rate guarantee. These contracts will be effective October 1, 2024, with the exception of item No. 4 that is effective January 1, 2025, funding is available in the Health and Benefits Fund.
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PREVIOUS COUNCIL ACTION
On June 10, 2019, City Council approved FY19-044 for Group Medical Insurance Benefits/ Services.
BACKGROUND
The City of Laredo went out for bids on RFP24-019 Health Plan Benefits Addendum 1; FY24-019- Self Funded and Fully Insured Medical Plans, Pharmacy, Dental, Stop Loss & Related Services through Cit-E-Bids. The request for proposals to solicit formal bids for the Health Plan Benefits and Medical Insurance carrier was published on the following dates:
• Health Plan and Benefits (November 2, 2023 and November 9, 2023)
The City of Laredo received eleven (11) proposals. On January 10, 2024, benefits insurance consultant, Gallagher Benefit Services Inc., provided an analysis review presentation. The Deputy City Manager and the Evaluation Committee convened to review and score the product submittals and provide for a recommendation for this item to take to City Council for approval.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Approval of Motion as presented.
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Fiscal Impact
Fiscal Year: 2024
Budgeted Y/N?: Click or tap here to enter text.
Source of Funds: Click or tap here to enter text.
Account #:
660-2035-513-5508 - Admin. Fee/ Insurance
660-2035-513-5509 - Admin. Fee/ Insurance Retirees
660-2035-513-9766 - Stop Loss/ Reinsurance
660-2035-513-9769 - Stop Loss/ Reinsurance Retirees
660-2035-513-9775 - Dental Claims
660-2035-513-9727 - Health-Medical Claims
660-2035-513-9728 - Prescription Claims
Change Order: Exceeds 25% Y/N: Click or tap here to enter text.
FINANCIAL IMPACT:
Funding is available in the Health and Benefits Fund (660).