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File #: RS-21-075    Version: 1 Name: Self-Insured Group Medical and Rx Benefits
Type: Resolution Status: Passed
File created: 5/4/2021 In control: City Council
On agenda: 6/8/2021 Final action: 6/8/2021
Title: Consider a memorandum/resolution awarding RFP 20-21 Group Employee Medical and Pharmaceutical Benefits to United Healthcare for self-insured benefits effective October 1, 2021.
Sponsors: Human Resources Department
Attachments: 1. Staff Report, 2. Certificate of Interested Parties, 3. Presentation
TITLE

Consider a memorandum/resolution awarding RFP 20-21 Group Employee Medical and Pharmaceutical Benefits to United Healthcare for self-insured benefits effective October 1, 2021.

SUMMARY

DATE: June 1, 2021

TO: Kent Cagle, City Manager

FROM: Eva Bark, Executive Director of Human Resources

SUBJECT: AGREEMENT WITH UNITED HEALTHCARE FOR SELF-INSURED GROUP MEDICAL AND RX BENEFITS

BACKGROUND AND FINDINGS:

The City of Killeen offers medical insurance as part of its employee benefits package. Currently, approximately 919 employees and 635 of their dependents select the City’s medical insurance plans. 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).

All benefits provided to City of Killeen employees are reviewed annually to ensure that both the City and employees are receiving the best product for the best price.

This year staff chose to issue a Request for Proposal (RFP) in order to obtain the most competitive rates possible inside a rapidly changing environment. The RFP requested for self-insured plan options only and for the removal of the requirement to see a primary care physician before seeking specialty care, known as gatekeeper. The Purchasing Division in the Finance Department distributed the RFP to interested vendors and posted the RFP on the City website. Three (3) carriers submitted proposals for self-insured medical/pharmaceutical insurance and six (6) carriers submitted proposals for pharmaceutical plans only. The medical carriers submitting proposals included United Healthcare, Blue Cross Blue Shield, and Scott & White Health Plan. The pharmaceutical providers submitting proposals for pharmaceutic...

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