HomeMy WebLinkAboutItem 16 - Retiree Health Insurance MEMO TO. HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER Uf'
MEETING DATE: OCTOBER 18, 2016
SUBJECT: APPROVAL FOR POST-65 RETIREE HEALTH INSURANCE
RECOMMENDATION:
City Council to consider award of an annual contract with Aetna Inc. for post-65 retiree
health insurance.
FUNDING SOURCE:
Funds are available in account 100-45670-109-1 (Retiree Health Claims and Premiums)
in the annual amount of$665,000.00
BACKGROUND:
The City of Grapevine Medicare eligible retirees currently receive a medical supplement
to Part B of Medicare and prescription coverage Part D through the City's retiree insurance
program. The current program offers two plans and a City subsidy
Request for proposals were taken in accordance with Texas Local Government Code
Chapter 252.022. Post-65 Retiree Health Insurance, was issued in conjunction with the
City's insurance consultants, McGriff, Seibels and Williams.
The RFP public notice was placed in the Fort Worth Star-Telegram on August 23 and 30,
2016. There were 75 invitations sent out through the eBid Procurement system. Five
agencies submitted proposals.
The City's insurance consultants, McGriff, Seibels and Williams evaluated all proposals
based on the City's requirements and the services offered. Staff reviewed results and
requested that McGriff, Seibels and Williams do best and final proposals from the top
ranked carriers.
After the Best and Final Proposals were received and evaluated, the evaluation team
chose Aetna Inc. as providing the best proposal for Post-65 Retiree Health Insurance. The
final bid tabulation is attached. The Aetna policy is a Medicare Advantage plan with
greater benefits at less cost, which will result in savings to the City and retirees, along with
better service. The City will continue to offer two plans and subsidize the Aetna PPO4
plans at 70%, which results in a savings of $6.00 monthly to the retirees. The annual
contract amount of savings is $93,425, which results in a premium decrease of 12.37%.
The contract will be for one year with four optional, one year renewals.
The final bid tabulation is attached.
Staff recommends approval.
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