HomeMy WebLinkAboutItem 10 - Post-65 Retiree Health InsuranceMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: OCTOBER 19, 2021
SUBJECT: ANNUAL CONTRACT FOR POST-65 RETIREE HEALTH INSURANCE
RECOMMENDATION: City Council to consider an annual contract with Retiree First for post-65
health insurance.
FUNDING SOURCE: Funds are available in the General Fund, Retiree Health Premium
accounts in the annual estimated amount of $360,000.
BACKGROUND: City of Grapevine retirees age 65 and over (Medicare eligible) currently
have the option of a Medicare Advantage PPO or a Medicare supplement
(Part F) and Medicare Rx Plan (Part D). The City's post-65 retiree
Medicare Supplement Plans have been administered by Group
Administrative Concepts for several years. In May, Group Administrative
Concepts was unexpectedly acquired by Bay Bridge Administrators
(BBA). After the change in administrators, staff received complaints from
the City's retiree population enrolled in the Medicare Supplement Plans. In
July, there was a lapse in coverage due to an error of BBA. Because of
these disruptions in service the City's broker, McGriff Insurance Services
researched and found another third party administrator (TPA) that can
provide better service and offer the same policies.
Retiree First can offer the same Medicare Supplement Plans with United
American and Express Scripts effective January 1, 2022. Retiree First will
continue to honor the current fee structure while expanding the services
offered. This contract is for one year with Retiree First.
Staff recommends approval.
GJ