HomeMy WebLinkAboutItem 10 - Post-65 Retiree InsuranceMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: NOVEMBER 6, 2018
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 Retiree Health Premium accounts 100-45670-109-
001, 115-45670-350-001, 117-45670-209-002, 200-45670-533-001 and
210-45670-340-001 in the annual estimated amount of $640,000.
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 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 second renewal option.
Staff recommends approval.
MH/GJ