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 health savings accounts, flexible spending accounts, COBRA, and direct billing management for City employees and retirees for the Department of Human Resources - HSA Bank, a division of Webster Bank, N.A., most advantageous proposer of seven - Not to exceed $666,609.00 - Financing: Employee 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 for health savings accounts (HSA), flexible spending accounts (FSA), COBRA, and direct billing management for City employees and retirees for the Department of Human Resources. The Employee Benefits Division of the Department of Human Resources operates and manages the City's health benefits programs related services; therefore, it is crucial for the City to offer and provide health coverage options to eligible employees and their dependents. This contract will provide processing administration, large-case management, customer service, COBRA, direct bill services, FSA, and HSA administration.
To obtain the most competitive pricing, proposals were accepted for bundled services. The following services were bundled:
* Flexible Spending Accounts
* Health Savings Account
* COBRA Administration
* Direct Bill Administration
There are approximately 2,920 active FSA, 476 active dependent care, 3,472 active HSA participants, as well as 198 pre-HSA employees enrolled in the plans.
The benefits program is structured on a calendar-year basis. During the annual enrollment held in September or October e...
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