TITLE
Recommendation to adopt Specifications No. RFP HR16-109 and award contracts to Anthem Blue Cross for the Preferred Provider Organization (PPO), Health Maintenance Organization (HMO) and Medicare Supplement group health plans; UnitedHealthcare for the Medicare Advantage Plan; Scan Health Plan for the Medicare Advantage Plan; and Vision Service Plan (VSP) for the City’s vision plan. (Citywide)
DISCUSSION
City Council action is requested to award contracts to Anthem Blue Cross, Scan, UnitedHealthcare, and Vision Service Plan for health and vision benefit plans for active employees and retirees.
The Human Resources Department administers a comprehensive Employee Benefits Program (Program) for active and retired City employees and their qualified dependents with input and recommendations from the City’s Health Insurance Advisory Committee (HIAC). HIAC is composed of City employees representing each bargaining unit and representatives from the Human Resources Department. HIAC was created and codified in our labor agreements for the purpose of reviewing the status and solvency of the Program and making recommendations to the City Manager on proposed plan changes, benefit levels, and addition or deletion of plan benefits.
The Program covers approximately 4,000 active employees, 2,000 retirees, and 7,400 dependents. The health plan benefit represents the largest expense of the Program. The health plan costs are estimated at $76 million for the 2017 plan year.
The Human Resources Department and HIAC have been cognizant of the City’s fiscal pressures and the degree to which escalating health care costs are a factor in the City’s fiscal outlook. In an effort to address health care costs, the City issued a medical and vision plan Request for Proposals (RFP) to solicit competitive bids. In addition, the Human Resources Department, in cooperation with HIAC, implemented a Dependent Eligibility Verification Project aimed at ensuring the Program covers eligible p...
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