This is an annual renewal for the Medicare Advantage Plan with Part D with United Health (UHC) in the amount not to exceed $2,026,366.56.

The Medicare contract is designed to provide a group Medicare Advantage Plan with Part D coverage for City retirees over 65 and their spouses who are Medicare primary. Changes in governmental accounting standards require recognizing the cost of post-employment benefits over an employee's working career. The best solution to reduce this liability while maintaining retiree medical benefits in a group-sponsored fully insured Medicare Advantage Plan. The City of Savannah has offered coverage since 2008.

For 2027, the City's benefit consultant, USI Insurance Services conducted a market assessment to four carriers of which United Healthcare (UHC), Humana, Aetna, and Anthem submitted quotes. UHC received the highest scores and provided an annual cost savings to the City of Savannah of $523,539 for the unbundled option (separate medical and pharmacy cards). The annual premium will be an estimated $2,026,366.56 with Retirees paying an estimated $603,223.45 and the City paying $1,423,143.11.

 

The RFP was sent to four companies: United Healthcare, Aetna, Anthem, and Humana. These companies are the current leaders in this market space.

Recommendation: Award the Medicare Advantage Plan Contract to UHC with an annual cost savings of $523,539. The unbundling option is part of the 5-year strategy to stabilize premiums. The contract will be effective from 01/01/2027 to 12/31/2027.

Approval