HomeMy WebLinkAboutItem 10 - Health PlanMEMOTO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: SEPTEMBER 15, 2020
SUBJECT: APPROVAL TO RENEW HEALTH PLAN ADMINISTRATIVE SERVICES
AGREEMENT
RECOMMENDATION: City Council to consider approval to renew an annual contract for Third -
Party Administrative Services with UMR for the City's self-funded health
plan.
FUNDING SOURCE: Funds are available in the General Fund 100, Health Insurance Premium
in the estimated amount of $359,000.
BACKGROUND: The purpose of this contract is to establish annual pricing for third -party
administration (TPA) for the City's self-funded health plan. The TPA
processes and pays medical claims on behalf of the City and provides
access to network discounts. They also provide utilization, case, disease
and maternity management services to members.
UMR's network includes 843,000 physicians and they process about
18,000 claims annually for the City's health plan. UMR has agreed to a
0.39% renewal rate increase on all administrative and network access
fees for the next plan year. This is a one-year contract. UMR has provided
these services to the City in the past with successful results.
Staff recommends approval.