HomeMy WebLinkAboutItem 16 - Post 65 InsuranceMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: OCTOBER 4, 2022
SUBJECT: RENEWAL FOR POST 65 RETIREE HEALTH INSURANCE
RECOMMENDATION: City Council to consider an annual contract for post 65 health insurance
with Retiree First.
FUNDING SOURCE: Funds are available in the General Fund (Risk Department) in the annual
estimated amount of $639,000.
BACKGROUND: City of Grapevine retirees age 65 and over (Medicare eligible) currently
have the option of a Medicare Advantage PPO with Aetna or a Medicare
Supplement (Part F) with United American and Medicare RX Plan (Part D)
with Express Scripts. This contract authorizes a continuation of those
plans as well as all third party administration (TPA) of the plans.
Retiree First is the current TPA of the supplement plan and has provided
excellent service to the City and plan members. Retiree First will offer the
same services for the Aetna Medicare Advantage PPO effective January
1, 2023 under the current fee structure. Having both Medicare plans and
ancillary benefits with one TPA will allow for an easier payment process
for our retirees. Retiree First offers patient advocacy, education, and
enrollment services in addition to billing.
Retiree First negotiated rates for this year's renewal for the Medicare
Supplement (Part F) and Medicare RX Plan (Part D) as well as the
Medicare Advantage PPO Plan. After careful consideration, and to ensure
the least amount of disruption to coverage, we recommend staying with
United American, Express Scripts and Aetna. This is an annual contract
renewal and one-year policy.
Staff recommends approval.