To: Mark R. Hafner, City Manager
From: Kandace Tappen, Director of Human Resources & Risk Management
Subject:
Title
Consider a resolution approving the City Manager to execute an agreement with Blue Cross/Blue Shield for the provision of administering the city’s self-funded medical and dental healthcare insurance plans, effective October 1, 2021; and authorizing the City Manager to execute all documents relating thereto on behalf of the City of Keller.
Action Requested:
Consider a resolution approving the City Manager to enter into an agreement with Blue Cross/Blue Shield (BC/BS) the purposes of administering the City of Keller’s self-funded medical and dental plans, effective October 1, 2021, for the estimated total cost of $588,707.
Background:
City Staff conducted an RFP process to garner interest for the provision of administrative services and stop loss insurance of its partially self-funded medical and dental healthcare plans. Of the nine (9) RFP submissions, the top four (4) vendors were interviewed by Staff: CIGNA, BC/BS, United Health Care and Aetna. The outcome of Staff interviews yielded in the recommendation of BC/BS as the best value vendor.
Financial Impact:
The estimated annual cost for the Administrative Services Only and Stop Loss insurance for both the medical and dental plans combined is $588,707. (Cost does not include the claims estimates, only the PEPM fixed costs based on enrollment census at the time of the RFP process.) If approved, the agreement would go into effect on October 1, 2021.
Citizen Input/Board Review:
N/A
Legal Review:
N/A
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial
Council Action:
Staff recommends approval of the proposed resolution as presented.