Recommend approval to award an annual contract for self-funded health plan third-party administration services to Health Plans, Inc.  in the amount of $310,935.

The Human Resources uses this contract is to provide self-funded health plan third-party administration (TPA) for medical claims processing, COBRA administration, and various plan administration services. The City offers a self-funded health plan for eligible active employees, pre-65 retirees and eligible dependents.  The plan covers approximately 5000 employees, retirees, and dependents. This contract will go into effect January 1, 2022.

The current vendor is UMR. Three vendors that responded to the bid and were evaluated on the following criteria:

            1) Claims Staff, Systems, & Quality Controls                                                           
            2) Client Support, Reporting, & Services                   
            3) Experience, Capabilities, & Resources                                 
            4) Fees & Financial Criteria

               
There were only three out of the six RFP’s sent that responded. Two declined to submit a proposal and one handed in the proposal late past the deadline date.

The bid was advertised, opened, and reviewed. The contract term expires on December 31, 2022. This contract also includes two available annual renewal options. Delivery: As needed. Terms: Net 30 days. The proposers were:

L.B.         Health Plans, Inc. (1500 West Park Drive, Suite 330, Westborough, MA 01581)^(D)             $310,935.00

                Healthscope Benefits ( Corporate Hill Drive, Little Rock, AR 72205)^(D)                    

               Allied Benefit Systems, LLC (200 West Adams Street, Suite 500, Chicago, IL 60606) ^(D)

A pre-proposal conference was not conducted. (D) Indicates non-local, non-DBE business. 

Approval