This is for an annual contract for self-funded health plan third-party administration services to Brighton in the amount of $530,344.

The purpose of this contract is to provide self-funded health plan third-party administration (TPA) services 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 5,000 employees, retirees, and dependents.

The City’s employee benefits consultant, USI Insurance Services, conducted a market assessment with five carriers: Brighton, HPI, Imagine360, UMR, and Veracity Benefits. Veracity Benefits declined to quote due to a shared claims processing platform with Imagine360. The current incumbent, HPI, has experienced many service issues, resulting in an unusual amount of time required from City staff and USI to manage ongoing file issues, a lack of notifications for high-dollar claimants, and communication challenges.

Brighton has provided three-year rates with an increase of $1.50 per member per month for Year 2 and $0.53 per member per month for Year 3, for a three-year estimated cost of $1,819,775, or $530,344 annually. The contract would be effective from January 1, 2027, through December 31, 2029.

The bidders were:

L.B. Brighton (1500 West Park Drive, Suite 330, Westborough, MA 01581) (D) — $530,344

HPI (Corporate Hill Drive, Little Rock, AR 72205) (D) — $531,619

UMR (200 West Adams Street, Suite 500, Chicago, IL 60606) (D) — $670,113

Imagine360 (Dallas, TX) (D) — $703,680

(D) Indicates non-local, non-DBE business.

Approval