TITLE
Recommendation to authorize City Manager to execute the renewal of contracts with Great-West Life, the City’s Third Party Administrator for the Preferred Provider Organization (PPO), Point of Service (POS) 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 the Life Insurance and Long- and Short-Term Disability Plans; 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; 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
Over the past year, the City has continued with the optimization review of our healthcare and employee benefits programs. With the assistance of Alliant Insurance Services, our ins'urance consultant, a joint labor-management committee evaluated the financial and service offerings of our medical plan vendors and explored alternative arrangements for cost savings and administrative efficiencies without compromising benefit levels currently enjoyed by City employees. It was determined that the optimal renewal strategy was to permit the existing medical vendors, Great-West Life (Great West) for the Point of Service (POS) and Preferred Provider Organization (PPO) and PacifiCare for the Health Maintenance Organization (HMO), to continue administering the medical plans, but under modified arrangements that resulted in better pricing.
Extensive actuarial and financial analyses revealed that the City can benefit from "carving out" (directly con...
Click here for full text