HomeMy WebLinkAboutItem 15 - Post 65 Health InsuranceMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: NOVEMBER 4, 2025
SUBJECT: RENEWAL FOR POST 65 RETIREE HEALTH INSURANCE
RECOMMENDATION: City Council to consider renewal of an annual contract for post 65 health
insurance with Retiree First.
FUNDING SOURCE: Funds are available in the General Fund in the annual estimated amount
of $957,775.
BACKGROUND: City of Grapevine retirees aged 65 and over (Medicare eligible) currently
have the option of a Medicare Advantage PPO with Aetna. The city also
has a grandfathered Medicare Supplement with United American and a
Medicare RX plan 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 both plans. Retiree First
offers patient advocacy, Medicare education/enrollment assistance, and
bill collection.
Retiree First and the City's broker, Lockton, negotiated rates for this year's
renewal. United American and Express Scripts saw an increase of 6.93%.
Lockton was able to negotiate no rate increase with Aetna with no plan
design changes. Retiree First secured additional quotes from Humana,
BCBS, and Transamerica. After careful consideration, and to ensure the
least amount of disruption to coverage, we recommended renewing with
United America, Express Scripts, and Aetna Plans. This is an annual
contract and one-year policy.