Recommend approval to authorize the City Manager to execute contract modification No. 1 with HealthSCOPE for Self-Funded Health Plan Third Party Administration (TPA) in the estimated amount of an increase of $1,000 annually. This is to provide a retiree benefit notice to qualified retirees. Currently the City of Savannah processes the notice of insurance cancellation to retirees. The purpose of the amendment is to transfer this responsibility to the Third Party Administration (TPA) and relieve the City of Savannah from future liability. The process and distribution of the notice has been in force since 2009 under staff direction.  It is determined the process should be administered through the Third Party Administration (TPA) for a fee of $12.00 per notice with an estimated annual total of $1,000.

The City offers a self-funded health plan for eligible active employees, pre-65 retirees, and eligible dependents.  The plan covers approximately 4,900 employees, retirees and dependents.  HealthSCOPE Benefits currently provides claims administration for the City.

The estimated annual cost for these services is $450,000 and is based on the number of employees and retirees enrolled in the medical plan.

Approval