HomeMy WebLinkAboutItem 08 - Post-65 Retiree Health InsuranceMEMOTO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: NOVEMBER 17, 2020
SUBJECT: APPROVAL TO RENEW ANNUAL CONTRACTS FOR POST -65
RETIREE HEALTH INSURANCE
RECOMMENDATION: City Council to consider approval to renew annual contracts with Aetna
Inc. and Group Administrative Concepts for post -65 retiree health
insurance.
FUNDING SOURCE: Funds are available in the General Fund 100, Retiree Health Premium
accounts in the annual estimated amount of $670,000.
BACKGROUND: The City of Grapevine retirees age 65 and over (Medicare eligible)
currently have the option of a Medicare Advantage PPO (Part C) and
Medicare Rx Plan (Part D) with Aetna or a Medicare supplement (Part F)
and Medicare Rx Plan (Part D) with Group Administrative Concepts.Both
policies provide services and program beyond the coverage of original
Medicare. Retiree premiums for these plans are subsidized by the City.
The set percentage of the subsidy is 70% by the City so the retiree only
pays for 30% of plan premium.
Aetna and Group Administrative Concepts have both provided flat
renewals, therefore, the cost to the City and the retirees will remain the
same as last year. This contract will renew both policies.
Request for proposals were taken in accordance with Texas Local
Government Code Chapter 252.022. The RFP public notice was placed in
the Fort Worth Star -Telegram on August 23 and 30, 2016. The contract
was for one year with four optional, one-year renewals. If approved, this
will be the fourth renewal option.
Staff recommends approval.