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HomeMy WebLinkAboutItem 09 - Post-65 Retiree Health Insurance MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: NOVEMBER 21 , 2017 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 account 100-45670-109-001 (Retiree Health Claims and Premiums) in the annual estimated amount of $600,000.00. 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 programs beyond the coverage of original Medicare. Retiree premiums for these plans are partially subsidized by the City. 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 for the first renewal option. Staff recommends approval. MH/GJ