From
Lisa Norris, Human Resources Director
Title
Award Blue Cross Blue Shield the contract for Third Party Claims Administration and Pharmacy Benefits Management beginning January 1, 2020 with an estimated return to the city of $258,668 for administrative fees, including Pharmacy Rebates for the first three years; approximately $707,600 over five years; this agreement will be for an initial term of three years, with two annual renewal options, with guaranteed renewal rates through December 31, 2025, and the option for additional renewal options with non-guaranteed rates beginning 2026; authorize the City Manager to execute up to two annual renewal options for this agreement with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the original contract value so long as sufficient funding is appropriated by the City Council to satisfy the City's obligation during the renewal terms (additional renewal options beyond the first two may be authorized but will require future City Council approval)
Presenter
Lisa Norris, Human Resources Director
Recommended Action
Approve
Analysis
The City has utilized United Healthcare (UHC) for third party claims administration services and pharmacy benefits management since January 2004. The current contract for both services is due to expire December 31, 2019. Holmes-Murphy, our benefits consultants, assisted Human Resources & Purchasing with the specification development.
City Staff solicited proposals in January 2019 for services beginning January 1, 2020. RFP# 19042 & 19045 were advertised in the Star-Telegram, Bidsync.com, and distributed to 114 vendors. One Grand Prairie vendor was available for these services who did not respond. The City received 8 proposals for third party administration services and 11 for pharmacy benefits management as shown in Attachment A.
The City evaluated the proposals received taking into consideration plan design, administration services, fees, multi-year guarantees...
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