Travis County Commissioners Court Agenda Request

Transcription

1 FILED FOR RECORD 9/26/2017 9:00 AM Dana Debeauvoir - County Clerk, Travis County,TX Item 42 Travis County Commissioners Court Agenda Request Meeting Date: Tuesday, September 26, 2017 Prepared By/Phone Number: C.W. Bruner/ Elected/Appointed Official/Dept. Head: Bonnie S. Floyd Commissioners Court Sponsor: Commissioner Travillion Consider and take appropriate action on the following for Individual Specific Stop Loss Coverage: A. Approve contract award for Fully Inured Stop Loss Coverage, RFP No CW, to the highest ranked Proposer, United HealthCare Insurance Company. B. Authorize the County Judge to sign Group Application for Fully Insured Stop Loss Coverage with United HealthCare Insurance Company for Policy Specimen and Certificates. Purchasing Recommendation and Comments: Purchasing recommends approval of requested action. This procurement action meets the compliance requirements as outlined by the statutes. This contract will provide fully insured stop loss insurance coverage for Travis County. RFP No CW was issued August 7, 2017 and closed on August 28, A total of thirty (30) vendors were solicited and two (2) proposals were received. The proposal submitted by United HealthCare Insurance Company (UHC) offered the lowest rates and similar coverage to the existing coverage with Voya Employee Benefits (Voya), a division of ReliaStar Life Insurance Company. In addition to matching the current coverage, the solicitation also requested rates for increasing the individual deductible to $400,000. This increase would reduce the annual premium but would also result in the County paying additional claim dollars before the claim was eligible for stop loss coverage. Based on the history of the number of stop loss claims HRMD is recommending keeping the individual stop loss deductible at $300,000. The deductible AGENDA REQUEST DEADLINE: All agenda requests and supporting materials must be submitted as a pdf to agenda@co.travis.tx.us by Mondays at 12:00 p.m. for the next week's meeting.

2 is the amount of plan expenses, for a single claim, that the plan must pay before the stop loss coverage will pay benefits. Stop loss coverage is vital in protecting the health plan from extremely high cost claims. The current stop loss premium from Voya and proposed premium rates for stop loss insurance from UHC are included in the enclosed exhibit in the agenda backup. Contract-Related Information: Award Amount: N/A (Requirements Contracts, As Needed) Contract Type: Annual, Bilateral Contract Period: October 1, 2017 through September 30, 2018 Solicitation-Related Information: Solicitations Sent: 30 Responses Received: 2 HUB Information: N/A % HUB Subcontractor: N/A Funding Information: N/A SAP Shopping Cart / Funds Reservation #: N/A Comments: Shopping carts are to be processed monthly based on current eligible members and the contract rates. AGENDA REQUEST DEADLINE: All agenda requests and supporting materials must be submitted as a pdf to agenda@co.travis.tx.us by Mondays at 12:00 p.m. for the next week's meeting.

3 HRMD Human Resources Management Department 700 Lavaca Street, Suite 420 P.O. Box 1748 Austin, Texas (512) / FAX(512) MEMORANDUM To: C.W. Bruner, Purchasing Department Date: September 8, 2017 From: Subject: Shannon Steele, Benefits Manager Karen Crider, Benefit Administrator Recommendation for Award, RFP # CW, Individual Specific Stop Loss Coverage for Travis County The current contract for fully insured Individual Specific Stop Loss insurance is set to expire on September 30, We would like to request the Purchasing Department recommend the awarding of the contract to UnitedHealthcare Insurance Company (UHC) for an effective date of October 1, UHC s proposal offered the lowest rates and similar coverage to the existing coverage with ReliaStar Life Insurance Company. In addition to matching the current coverage, we also requested rates for increasing the individual deductible in increments up to $500,000. The deductible is the amount of plan expenses, for a single claimant, which the plan must pay before the stop loss coverage will pay benefits. This increase would reduce the annual premium but would also result in the County paying additional claim dollars before the claim was eligible for stop loss coverage. Based on the history of the number of stop loss claims we recommend keeping the individual stop loss deductible at $300,000. Stop loss coverage is vital in protecting the health plan from extremely high cost claims. UHC, as the Third Party Administrator, charges $1.00 per employee per month for reporting integration with a third party stop loss carrier. This fee will now be waived for Fiscal Year 2018, thus reducing the administration fee costs to the County. With an integrated system, the County will receive reimbursements for stop loss claims within five days compared to current, which can be up to six weeks. Also, the stop loss proposal offers an experience based refund of premium.

4 The current stop loss premium from Reliastar and proposed premium rates for stop loss insurance from UnitedHealthcare Insurance Company are as follows: Current Proposed Proposed Individual Stop Loss Deductible $300,000 $300,000 $500,000 Monthly Premium $46.94 $52.51 $25.70 Additional Reporting Expense $1.00 $0.00 $0.00 Estimated Annual Premium $2,865,698 $3,138,598 $1,536,050 The funding source for this contract is: Stop Loss Employee Stop Loss Retiree Stop Loss

5 Evaluation Summary TRAVIS COUNTY REQUEST FOR PROPOSALS (RFP) # CW Individual Specific Stop Loss Coverage Respondent Overall Score United HealthCare Insurance Company Sun Life Assurance Company of Canada 87.62