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HomeMy WebLinkAboutItem 16 - Retiree Health Insurance MEMO TO. HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER Uf' MEETING DATE: OCTOBER 18, 2016 SUBJECT: APPROVAL FOR POST-65 RETIREE HEALTH INSURANCE RECOMMENDATION: City Council to consider award of an annual contract with Aetna Inc. for post-65 retiree health insurance. FUNDING SOURCE: Funds are available in account 100-45670-109-1 (Retiree Health Claims and Premiums) in the annual amount of$665,000.00 BACKGROUND: The City of Grapevine Medicare eligible retirees currently receive a medical supplement to Part B of Medicare and prescription coverage Part D through the City's retiree insurance program. The current program offers two plans and a City subsidy Request for proposals were taken in accordance with Texas Local Government Code Chapter 252.022. Post-65 Retiree Health Insurance, was issued in conjunction with the City's insurance consultants, McGriff, Seibels and Williams. The RFP public notice was placed in the Fort Worth Star-Telegram on August 23 and 30, 2016. There were 75 invitations sent out through the eBid Procurement system. Five agencies submitted proposals. The City's insurance consultants, McGriff, Seibels and Williams evaluated all proposals based on the City's requirements and the services offered. Staff reviewed results and requested that McGriff, Seibels and Williams do best and final proposals from the top ranked carriers. After the Best and Final Proposals were received and evaluated, the evaluation team chose Aetna Inc. as providing the best proposal for Post-65 Retiree Health Insurance. The final bid tabulation is attached. The Aetna policy is a Medicare Advantage plan with greater benefits at less cost, which will result in savings to the City and retirees, along with better service. The City will continue to offer two plans and subsidize the Aetna PPO4 plans at 70%, which results in a savings of $6.00 monthly to the retirees. The annual contract amount of savings is $93,425, which results in a premium decrease of 12.37%. The contract will be for one year with four optional, one year renewals. The final bid tabulation is attached. Staff recommends approval. MH/BS City Grapavh)44 Summary ot Medicare M.11030n11 hsuKs January 1,2017 oM,.7,44+13„ 11.144...11.1 H.mort °nine 8...1.10 unseat„nun BOSS Not 1140041 14441 1409140 inien 410440 Netrourk 000304 5° WA 5751° Bea $0 WA w Pi:o 045040 in a 0°50 10 NM SO WA En WA _ Member Cunsun50 0%.4410 1140N41 144541 No41440 WA 5200 0o mA7m $l:wno s Deo Na WA sambaed OOP w.usul did $110001 Su 30404,04. 50 w 36 Emewroy Con 30 10 15 145 0 4% Anbuierwe 30 10 uo 50 41 000 Popebent F540 r me.lol da 4440 w w $1" m. w 500 1410 $15° s O 104„mu $0 SO 14400 04011-211 10 So ea so so 30 10 $0 30 1hu 915401400. $0 30 00, sow $0 Chrupaaa 5 30 Carnoley 10 4% 50 50 510 :m. $0 $ 0 w 30 131°11 4% RS Oodua MX Chat 75,13 up 013,310 copUlna 44454Mum urn . 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