Print
Reading Mode
Back to Calendar
Return
AI# 11051
Regular City Council Meeting
6.8.
10/11/2022:
Information
Agenda Item
Resolution - Health Benefits:
Consider a resolution authorizing the Mayor to execute Amendment 2 to Contract 13582, by and between the City of Lubbock and Optum Financial, to provide Flexible Spending Account and Health Reimbursement Arrangement (HRA) administrative services.
Item Summary
The City of Lubbock benefits package contains a Flexible Spending Account (FSA) and Dependent Care Assistant Plan (DCAP) for full-time City employees. Employees have the option to deduct, on a pre-tax basis, up to $2,850 in an FSA and up to $5,000 in a DCAP.
Medicare eligible retirees at age 65 are moved from the group health plan and enrolled in a Healthcare Reimbursement Arrangement (HRA) plan. The Post-65 HRA is employer funded at $150 per month per retiree and $150 per month per spouse. Optum Financial administers the current plans.
On June 19, 2022, the City issued a Request for Proposal (RFP 22-16694-TF), for Medical, Dental, PBM, Vision, COBRA, FSA administration, DCAP administration, and HRA administration.
The selection criteria in the RFP included:
experience in servicing self-funded governmental entities, especially in Texas (10 Points);
claims adjudication service(s) offered and the ability to deliver electronically integrated medical, care and disease management (10 Points);
quality of provider network (15 Points);
quality of medical management (15 Points);
information services and reporting capabilities (10 Points);
written and oral presentations and representations (10 Points);
cost of coverage and services (20 Points); and
ability to integrate with an outside PBM and the City’s free clinics (10 Points).
The RFP generated responses from Optum Financial, WEX Health, Total Administrative Services Corporation (TASC), Interflex Payments, LLC dba Ameriflex, and BlueCross BlueShield of Texas (BCBSTX), for Flexible Spending Account and Health Reimbursement Arrangement (HRA) administrative services.
The RFP committee gave the following rankings to the responding vendors.
Proposer
Points
BlueCross BlueShield of Texas
94.00
Optum Financial
89.45
Total Administrative Services Corporation (TASC)
83.45
WEX Health
78.95
Interflex Payments, LLC dba Ameriflex
72.80
The RFP committee recommends Optum Financial, based on stability of services for the Post-65 retirees. This group moved from a previous carrier to Optum Financial in January 2022. The retiree HRA participant accounts are established. The Optum group has a firm understanding of the City’s plan and remaining with Optum Financial avoids disruption to the participants. The Optum Account Executive was very involved in the HRA implementation process, and was instrumental in increasing customer service staff, as well as training them on the complexities of the HRA plan. Optum Financial provides a call center open 24/7/365.
Fiscal Impact
The fiscal impact to the City is approximately $45,000. Fees are based on a per participant fee.
Staff/Board Recommending
Bill Howerton, Deputy City Manager
Clifton Beck, Director of Human Resources
Attachments
Resolution - Optum Amendment
Optum ASA Amend 2 1-1-23 (876725.2) - signed
Contract 13582 - Connect Your Care ( now Optum)
AgendaQuick ©2005 - 2024 Destiny Software Inc.
All Rights Reserved.