HomeMy WebLinkAboutItem 15 - Health Plan Administrative Services MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: AUGUST 4, 2026
SUBJECT: APPROVAL TO RENEW HEALTH PLAN ADMINISTRATIVE SERVICES
AGREEMENT
RECOMMENDATION: City Council to consider the approval to renew the contract for Third-Party
Administrative Services with UMR for the City's self-funded Health Plan.
FUNDING SOURCE: Funds are available in the General Fund (Risk) in the estimated amount of
$430,000.
BACKGROUND: The purpose of this contract is to establish annual pricing for the 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. UMR also provides utilization, case,
disease, and maternity management services to our members.
The City and our broker, Lockton, reviewed six medical administrators and
determined that UMR is still the best option. Lockton was able negotiate a
2% increase and a $100,000 credit over the three-year contract with no
disruption in network providers.