TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to amend Contract No. 35598 with HealthAdvocate, of Omaha, NE, for providing a comprehensive and strategic suite of health resources designed to streamline City of Long Beach employees’ healthcare navigation experience, to increase the annual amount by $75,000, for a revised annual contract amount not to exceed $275,000. (Citywide)
DISCUSSION
City Council approval is requested to amend Contract No. 35598 with HealthAdvocate for providing a comprehensive and strategic suite of health resources for City of Long Beach (City) employees. The requested amendment will add funds to bring us more in line with the current number of City staff who uses these services.
On March 10, 2020, the City Council awarded a contract to HealthAdvocate to provide concierge services to eligible employees and retirees to assist with navigation of the health care system in the amount of $200,000 for a three-year period, with the option to renew for two additional one-year periods. The requested annual increase of $75,000 reflects a more accurate City employee headcount, which impacts the monthly invoice amount. HealthAdvocate replaced the previous Nurse Ambassador Program, which was discontinued on December 31, 2019.
The Department of Human Resources administers the City’s employee benefits healthcare program. The program covers approximately 4,400 active employees, 2,000 retirees, and 7,800 dependents.
In accordance with the Memoranda of Understanding (MOU) between the City and its employee organizations, the Health Insurance Advisory Committee (HIAC), which is comprised of representatives from each of the employee associations, annually reviews the status of the plan costs and makes recommendations to the City Manager on plan changes, benefit levels, and addition and deletion of plans.
HealthAdvocate provides ease of navigation for employees and retirees, competitive cost structure, and robustness of services. The services are available to PPO and HMO plan participants including retirees enrolled in the City Health plans. A recap of HealthAdvocate’s service model is outlined below:
• One number to reach all benefits. A single toll-free number connects employees to their entire employee benefits package.
• 24/7 healthcare help from a dedicated Health Concierge. HealthAdvocate experts explain coverage and coordinate benefits, identify leading in-network doctors, make appointments, facilitate required pre-authorizations, and coordinate services related to all aspects of an individual’s medical care. HealthAdvocate also works with providers and insurance companies on employees’ behalf to research and resolve a wide range of related complex matters, such as insurance claims and medical billing issues.
• Second opinions. HealthAdvocate can research and identify top experts and Centers of Excellence across the country for second opinions and facilitate the transfer of medical records, tests, and lab results.
• Medical decision support. HealthAdvocate’s experienced clinical team can explain diagnoses and treatment options, research and identify the latest, most advanced approaches to care, discuss the cost and quality of medical services to drive more informed decisions, help employees prepare for doctor visits, and much more.
• Ongoing, targeted home mailings. Employees receive regular, targeted home mailings that address gaps in recommended and chronic condition care.
• Email and mobile app notifications. Personalized, data-driven age and gender-appropriate e-mail and mobile notifications help ensure that employees get important preventive care and other services at the right time. They can then connect to HealthAdvocate for help finding providers and making appointments.
• Anytime, anywhere access through web and mobile app. 24/7 access online and by mobile device to all HealthAdvocate benefits and services. Employees can also connect instantly with their dedicated Health Concierge at the touch of a button.
• Online on-the-go health advice. The HealthAdvocate member website and app feature a wide range of relevant articles, reminders, and other resources to promote ongoing employee health engagement.
• Increase awareness and utilization of employee benefits. The HealthAdvocate team of experts can also assist in transitioning employees to any of the City’s other benefit vendors as appropriate (e.g., Employment Assistance Program, etc.).
• Digital navigation. HealthAdvocate’s secure technology platform can link users seamlessly to the City’s other benefit vendors from the HealthAdvocate website and mobile app.
This matter was reviewed by Assistant City Attorney Gary Anderson and Purchasing Agent Michelle Wilson on March 14, 2022, and by Budget Management Officer Nader Kaamoush on March 21, 2022.
TIMING CONSIDERATIONS
City Council action to amend Contract No. 35598 with HealthAdvocate is requested on April 5, 2022, to ensure that the City is able to meet its financial obligations to the vendor.
FISCAL IMPACT
The estimated annual cost of $275,000 for HealthAdvocate services is budgeted in the Employee Benefits Fund Group in the Citywide Department and replaces the fund allocation for the Nurse Ambassador Program. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOE AMBROSINI
Director of HUMAN RESOURCES
APPROVED:
THOMAS B. MODICA
CITY MANAGER