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), 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; Elite as the Stop-Loss Re-insurer; 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; 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; 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
During 2006 and 2007, the City marketed all health, dental and life insurance plans through a joint labor-management effort, selecting providers that offered the best overall benefit options for employees, with the most efficient and effective administrative support and pricing. The recommended agreements reflect the providers selected as part of this process and pricing guarantees offered as a result of these efforts.
Over the past several months, Human Resources staff has met with members of the Health Insurance Advisory Committee (HIAC) to discuss the City's healthcare and benefits program. With the assistance of Alliant Insurance Services, our insurance advisor, the staff and HIAC have reviewed the financial performance of the health plans and plan design options that could generate savings to the City's overall healthcare costs. With medical cost trends estimated to increase close to 12% in...
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