From
Lisa Norris, Human Resources Director
Title
Five-year vision insurance agreement with Superior Vision Services, Inc. effective January 1, 2019 through December 31, 2023 for an estimated annual cost of $139,147, and total 5-year contract cost of $695,735, and authorize the City Manager to renew annually so long as the extension(s) are mutually agreed upon between the City and carrier, and do not increase by more than 25% or $50,000 for all renewals combined, and are appropriated in the budget annually
Presenter
Lisa Norris, Human Resources Director
Recommend Action
Approve
Analysis
Superior Vision has provided excellent vision coverage to our employees, retirees and their covered spouses for many years, but our current agreement expires December 31, 2018. As a result, Request for Proposal (RFP) #18076 for vision services was properly advertised and issued by Purchasing in the spring of 2018 for competitive quotes. Twenty-three vendors viewed the Vision RFP from the City and eight submitted responses by the May 2018 deadline for analysis. Best value was based upon criteria which included: 1) Plan Benefits and Services, 2) Network , 3) References, and 4) Pricing, Fees and Renewals. The RFP stated the City's desire for a multi-year contract as this is advantageous to the City and employees for continuity in vendors, services, providers and associated costs.
Vision is a 100% voluntary benefit paid, in full, by the employees. The City currently offers two plan options through Superior that vary in cost, benefits and participation. The Basic Vision option provides exam only benefits and has about 200 participants. The Buy-up Vision plan offers comprehensive benefits for exams, frames, lenses or contacts based upon a co-pay, and includes discounts for laser vision correction and additional pairs of glasses. This plan has the strongest participation with approximately 900 participants. The City evaluated the quoting carriers for similar services and plans.
Review of all of the responding carriers resulted in Superior Vision offering the best value overall. While Superior Vision charges higher premiums, thereby resulting in a lower "fees" score, their benefits are stronger and no other carrier matched the network of providers offered through Superior. As a result, they achieved the highest overall ranking amongst proposers. Superior has been a long-term vendor with the City, providing outstanding service to our employees and retirees, as well as partnering in our wellness activities such as health fairs and vision screenings. The City would like to continue that relationship. The scoresheet is attached for your convenience based upon the criteria quoted.
This item did not go before the Finance and Government Committee as it is currently appropriated annually in the Employee Insurance Fund budget.
Financial Consideration
Vision premiums are budgeted at $135,000 in the FY 2018/2019 in the Employee Insurance Fund (213010-64220) and are fully employee paid. Estimated premiums are $139,147 based on current enrollment which is greater than the appropriated amount, but premiums will be paid equal to that amount from the employees for an overall "wash." No additional funding is necessary.