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CITY COMMISSION AGENDA ITEM |
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Department: |
Human Resources |
Commission Meeting Date: July 11, 2018 |
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Staff Contact: |
Lori Carnahan |
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Recommendations/Options/Action Requested: |
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Approve employee healthcare plan service providers as recommended and authorize the City Manager to negotiate agreements with each service provider effective January 1, 2018. |
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Executive Summary: |
In February 2017, Hays Companies (Hays) issued a formal RFP on behalf of the City for healthcare plan service providers, including medical, dental, prescription and vision.
Based on analysis from Hays and feedback from the Healthcare Committee (HCC), Human Resources staff (staff) recommends the following companies provide services for the healthcare plan in 2018:
· Aetna – medical and vision plan administration and provider network (change from Cigna); · MedTrak – pharmacy benefit manager (incumbent); · Delta Dental – dental plan administration and provider network (incumbent).
If approved, staff will provide notice of termination to Cigna, commence contract negotiations with Aetna and initiate conversion activities for a January 1, 2018 effective date. MedTrak Rx and Delta Dental contracts automatically renew each year. |
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Strategic Plan Critical Success Factor |
Effective Governance/Professional Administration Core Services Sound Fiscal Stewardship |
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Fiscal Impact (Amount/Source): |
The fiscal impact to the City is $475,000 plus claims costs. This item will be paid from the City’s Health Insurance Fund. As an internal service fund, this fund is not budgeted, however, the City’s contributions to the fund are budgeted and have been included in the 2018 Recommended Budget. |
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Attachments: |
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Reviewed By: (for CMO use only) |
☐TM ☐DS ☒CT ☐BM |