Staff recommends the City Council approve the Consultant Agreement with Gallagher Benefit Services, Inc. to provide guidance and direction to the City's Health Insurance Committee.

The City of Billings has a self-funded health insurance plan that is administered by the Health Insurance Committee, and by Plan Administrator Chris Kukulski.  The Committee consists of 15 individuals: 3 members each from Fire, Police, and Teamsters' unions, 5 Non-bargaining members, and 1 retiree member.  This Committee is guided by a Heath Insurance Consultant team of benefits experts, including consulting, underwriting, compliance, and administrative staff.  In addition, the consultant provides strategic solutions to bring relevant benefit trends to the City's benefit options to assure the Plan remains competitive and cost-effective.  The consultant attends quarterly Health Insurance Committee meetings and provides monthly, quarterly, and annual reports to the Committee and Human Resources.  The consultant develops annual rate structures for the Plans, reviews Plan documents and Plan designs, as well as provides guidance on the Employee Healthcare Act and other regulations.

Human Resources Department prepared a Request for Proposals (RFP) for Health Insurance Consultant Services.  The RFP was advertised in the Yellowstone County News on August 6 and 13, 2021.  Proposals were received from PayneWest Insurance, Inc., Alliant Insurance Services, Inc., HUB International Insurance, and Gallagher Benefit Services, Inc.  

The selection committee consisted of members of the Health Insurance Committee to include Kevin Iffland, Andy Zoeller, Brett Lapham, Bill Tatum, Dave Shearer, Leta Lintern, Anne Kindness, and Karla Stanton.

The following information was considered in the recommendation:  

1. Compliance with Instructions and Submittal Date
2. Scope of Proposal
3. Assigned Personnel
4. Availability of the Firm
5. Motivation
6. Firm Capability
7. Cost

In addition, the Committee checked references for the top two firms after the initial evaluation.
 

City Council may:

• Approve the Consultant agreement; or,
• Not approve the Consultant agreement.

The Benefit Consulting services total costs not to exceed:

• January - December 2022          $64,500
• January - December 2023          $64,500
• January - December 2024          $66,500
• January - December 2025          $68,500
• January - December 2026          $70,500

The Government Accounting Standards Board (GASB) pronouncement 75 services total costs not to exceed:

• Fiscal Year July 1, 2022             $ 6,250
• Fiscal Year July 1, 2023             $15,000
• Fiscal Year July 1, 2024             $ 6,500
• Fiscal Year July 1, 2026             $15,500

The length of the contract will be for a period of five (5) years with an option to renew the contract for an additional five (5) years.