TITLE
Recommendation to authorize City Manager to execute the renewal of contracts with Great-West Life/CIGNA, the City's Third Party Administrator for the Preferred Provider Organization (PPO) and the Open Access (OA) group health plans; PacifiCare for the Health Maintenance Organization (HMO) group health plan and closed-panel dental plan; Medco as the Prescription Benefit Manager (PBM) for the prescription drug plan; Delta Dental for the fee-for-service dental plan; Medical Eye Services (MES) for the vision plan; Standard Insurance Company for life insurance and Long- and Short- Term Disability; and Union Mutual Life Insurance Company (UNUM) through Larry Lambert & Associates Insurance Services for the long-term care benefits; and to continue the City's self-funded, In-Hospital Indemnity program administered by Great-West Life/CIGNA;
Authorize City Manager to execute a renewal of the Agreement with Alliant Insurance Services Inc., in the amount of $235,000 to provide employee healthcare benefits program consulting and actuarial services for a period of one year, and to execute amendments to extend the term for up to two separate, consecutive one-year periods; and
Authorize City Manager to execute any subsequent amendments necessary to maintain current benefit levels and remain in compliance with state and federal laws on all plans. (Citywide)
DISCUSSION
In accordance with Memoranda of Understanding (MOU) between the City of Long Beach and its employee associations, the City Employees' Health Insurance Advisory Committee (HIAC), composed of representatives from each of the employee associations, has met with City staff from the Department of Human Resources to review the employee health, dental and life Insurance programs.
The health insurance industry has seen dramatic rate increases during the past several years.
Statewide, most employers have faced a 14% increase for their healthcare programs due to rising medical care costs, increased utilization, and...
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