HomeMy WebLinkAboutItem 12 - Health Plan MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: JULY 20, 2021
SUBJECT: APPROVAL TO RENEW HEALTH PLAN ADMINISTRATIVE SERVICES
AGREEMENT
RECOMMENDATION: City Council to consider approval to renew contract for Third-Party
Administrative Services with UMR for the City's self-funded Health Plan.
FUNDING SOURCE: Funds are available in General Fund (Insurance) in the estimated amount
of$377,000.
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 (UHC Choice Plus) includes 843,000 physicians and
5,300 hospitals. In 2020 UMR processed 16,423 claims for the City's
health plan. UMR has agreed to a three-year contract with a total increase
of 2.09% over three years. UMR has provided these services to the City in
the past with successful results.
Staff recommends approval.
GJ