Regular City Council Meeting
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Regular City Council Meeting
Resolution - Health Benefits:
Consider a resolution authorizing the Mayor to execute the renewal of Contract 14820, by and between the City of Lubbock and Dearborn National Life Insurance, to enhance services by adding the SelerixBenSelect benefits administration system.
In July 2019, City staff issued a Request for Proposal (RFP) 2019-14820 for ancillary benefits, including group Term Life Insurance, Accidental Death and Dismemberment, Long-Term Disability, and Accident Insurance. Dearborn Life Insurance, now rebranded under BlueCross BlueShield of Texas (BCBXTS), was awarded the contract for a 5-year term beginning January 1, 2020.
BCBSTX is offering a technology subsidy to assist the City with implementing the Selerix online benefits enrollment system. The purpose of the subsidy is to lower the cost of the online system for the City and to offer a better service experience with BCBSTX. The subsidy paid by BCBSTX equals half the cost. The annual cost to the City is $70,000.
The advantages of implementing an online enrollment system are:
Eliminating manual, paper processes surrounding benefits enrollment and administration
Data integrity – accuracy and consistency of data
Common remitter system – City issues one check to Selerix – money and census sent to each vendor
Full census extract to satisfy BCBSTX/Dearborn and other vendor billing requirements
Specialized reporting tools to monitor and collect employee data
Reduced administrative time for Benefits and Accounting staff
Reduced possibility of premium payment discrepancies
Real-time exchange of data for new hires, life events, terminations, and deductions
Employees can review benefits from home or office and check their selections and benefits any time
Selerix also has an ACA module that can be added for $22,000 per year. The 1095 processing is a cumbersome process for benefits and IT staff - at least one month of labor. The completed forms are sent to departments for distribution which jeopardizes protected information. The individual data needed for 1095 reporting is stored and mined from the Selerix system.
The Selerix solution replaces the City's legacy application developed in-house which is lacking functionality to meet the current and future needs of our organization. Saving time by automating processes allows City resources to concentrate on more strategic projects and initiatives.
Staff recommends adding the online enrollment capability to the Dearborn contract, based on the substantial need for an online benefits system, and the cost advantage of saved manual labor hours between the benefits and accounting staff.
The annual cost to the City is $70,000. Adding the ACA module increases the annual cost to $92,000. Rates paid by the City and employees for life insurance, disability insurance, and voluntary products will remain the same.
Bill Howerton, Deputy City Manager
Clifton Beck, Director of Human Resources
Resolution - Dearborn Adding Selerix Admin System
Contract - Dearborn Adding Selerix Admin System
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