STRATEGIC PRIORITY: Core
AGENDA DATE: June 11, 2025
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Donzell Gipson
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SUBJECT
Title
Authorize a three-year service contract, with two one-year renewal options, for medical and health-related services for all active employees and retirees for the Department of Human Resources - Blue Cross Blue Shield of Texas, a Mutual League Company, most advantageous proposer of six - Not to exceed $41,837,526.99 - Financing: Employee Health Benefits Fund (subject to annual appropriations)
Body
BACKGROUND
This action does not encumber funds; the purpose of a service contract is to establish firm pricing for services, for a specific term, which are ordered on an as needed basis.
This service contract will provide medical and health-related services for all active employees and retirees for the Department of Human Resources. The service contract will provide City employees and retirees with appropriate health plan administration and related insurance services. Additional services will include claims processing administration, stop loss insurance, medical management, provider network access, large-case management, and 24-hour customer services.
The following core services include:
* Medical Administrative Services (Active & Pre-65 Retirees)
o Clinical and Mental Health Programs/Disease Management
o Wellness & Communications Support
* Medicare Advantage Plans (Post-65 Retirees)
* Stop Loss Coverage
* Medical/Admin Costs include Medical + Stop Loss Premiums + Fully Insured Retiree Medicare Advantage Premiums less any credits
The City currently insures approximately 13,000 employees and has approximately 2,000 pre-65 retirees, and 3,000 post-65 retirees totaling approximately 18,000 eligible employees for the City's medical plan benefits.
The City pays approximately 60 percent of the health care plan cost with employees and r...
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