From
Lisa Norris, Human Resources Director
Title
Four-year vision insurance agreement with Superior Vision Services, Inc. for basic and buy-up vision services effective January 1, 2015 through December 31, 2018 for an estimated annual cost of $115,000 for a total 4-year estimated cost of $458,000. This includes a rate guarantee for the 4-year contract, with the option for the City Manager to authorize annual renewals beyond the initial contract period if rates are appropriated annually in the budget and renewal rates, in total for all renewed years, do not exceed $50,000 or an increase greater than 25% of the originally contracted rates.
Presenter
Lisa Norris, Human Resources Director
Recommend Action
Approve
Analysis
Our current agreement with Superior Vision expires December 31, 2014. As a result, the City issued a Request for Proposal (RFP) in May 2014 for competitive quotes on our existing plans and/or other options. Carriers received notification of the proposal through the City’s Purchasing Division and required advertisements were released. Responses were due on May 19, 2014.
In response to the proposal, 10 companies, including our "in-force" carrier, submitted responses to the City for analysis. Consideration was given to each proposal based on each carrier’s ability to meet existing plan structure, benefits, fees and renewals, as well as any options presented.
The City currently offers two different plan options to employees that vary in cost and benefits, resulting in varying participation. The Basic Vision option provides exam only benefits with discounts for materials and maintains about 147 participants. The Buy-up Vision plan offers comprehensive benefits for exams and materials on a co-pay basis, including discounts for laser vision correction, contacts, and discount options for additional pairs of glasses, etc. This plan has the strongest participation with approximately 730 participants.
Staff recommends that the City contin...
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