Title
Consider a memorandum/resolution selecting Group Employee Medical and Pharmaceutical Benefits with Blue Cross and Blue Shield of Texas effective October 1, 2024.
Body
DATE: June 4, 2024
TO: Kent Cagle, City Manager
FROM: Eva Bark, Executive Director of Human Resources
SUBJECT: AGREEMENT WITH BLUE CROSS AND BLUE SHIELD OF TEXAS FOR GROUP MEDICAL AND RX BENEFITS
BACKGROUND AND FINDINGS:
The City of Killeen offers medical/RX as part of its employee benefits package. Currently, approximately 996 employees select the City's medical insurance plans.
All benefits provided to the City of Killeen employees are reviewed annually to ensure that both the City and employees are receiving the best product for the best price. The City currently pays 100% of the medical premiums for the employee only on the lowest plan option. Employees may purchase additional medical coverage for eligible family members or dependents at their added expense. The City's current medical carrier is United Healthcare (UHC), and the City offers two medical plans: An Exclusive Provider Organization (EPO) Plan, traditionally known as a Copay plan, and a High Deductible Health Plan (HDHP), with a health savings component. Due to anticipated increases based on claims performance, as well as input from the employee population regard benefit issues, the City, in partnership with our benefit consultant Lockton Dunning, initiated a Request for Proposal (RFP) to solicit bids for medical insurance to obtain the most competitive rates possible inside a rapidly changing environment.
The annual expense for FY 2024 medical/RX is projected at $7,045,766. The City received three (3) responses to the medical/RX RFP; UHC, Blue Cross and Blue Shield of Texas (BCBSTX), and Cigna. After thorough analysis for the responses received, it is recommended the City enter into contract with BCBSTX for an estimated FY 2025 cost of $7,186,542.
Medical/RX
The contract with BCBSTX includes out-of-netw...
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