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GARLAND
PURCHASING REPORT
Agenda Item 2.f.
City Council Regular Session Agenda
Meeting Date:
12/13/2022
Item Title:
Health Benefits Stop-Loss Coverage
Submitted By:
Kristen Smith
Bid Number:
0120-23
Purchase Justification:
This request is to provide stop-loss insurance protection for self-insured employers by serving as a reimbursement mechanism for medical claims exceeding predetermined levels. Currently, any claim exceeding $275,000 is reviewed for potential stop-loss reimbursement. For several years, the City has seen a continuing increase in high-cost medical claimants, and projections assume that this trend will continue for the foreseeable future. The City’s risk related to these claims is hedged through stop-loss coverage. This approval is for a Term Agreement with
two (2) optional renewals.
Evaluation:
A Request for Proposals was issued in accordance with Purchasing procedures. Three (3) proposals were received and evaluated based on the published criteria. Blue Cross Blue Shield of Texas (BCBSTX) received the highest evaluated score, offering the Best Value for the City.
Award Recommendation:
Vendor
Item
Amount
Blue Cross Blue Shield of Texas
All
$2,706,738.00
TOTAL:
---------------------------
$2,706,738.00
Basis for Award:
Best Value
Purchase Requisition #:
48473
Fiscal Impact
Total Project/Account:
$52,445,428
Expended/Encumbered to Date:
5,468,230
Balance:
$46,977,198
This Item:
2,706,738
Proposed Balance:
$44,270,460
Account #:
401-1194-740208, 401-1196-740208
Fund/Dept/Project – Description and Comments:
Term Agreement sets price but does not commit funds. Expenses will be charged to the Group Health Insurance Fund's operating accounts as incurred.
Employees: $2,361,408.71
Retirees: 345,329.29
Total: $2,706,738.00
Attachments
Bid Recap
Fiscal Reference:
Budget Type:
Operating Budget
Fiscal Year:
2022-23
Document Location:
Prop. Budget - Page 297
Budget Director Approval:
Allyson Bell Steadman
Approval Date:
12/02/2022
Purchasing Director Approval:
Gary L. Holcomb
Approval Date:
12/02/2022
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