Title
Resolution Authorizing Contract 2016-0514 with United Health Care (UHC) for Medical Plan Administration Services
Body
Department: Executive
Council District: N/A
Public Hearing: N/A
Advertising Date/By: N/A
Contact 1 and Phone: Jim Westmoreland, City Manager, (336) 373-2002
Contact 2 and Phone:
PURPOSE:
The City of Greensboro contracts with a Third Party Administrator that is specialized in the areas of providing healthcare benefits plan administration and customer service related to the City's Medical Plan. The three-year contract, with two potential one-year renewals, will exceed $100,000 and requires City Council approval.
BACKGROUND:
AON Consulting conducted and managed a Request for Proposal (RFP) process for the City of Greensboro for medical plan administration and pharmacy coverage (see attached RFP). The RFP provided the process parameters and selection criteria desired by the City. In addition, the RFP also permits the City the ability to: reject any or all proposals, clarify any ambiguities, modify any criteria in this RFP, and negotiate exclusively with one or more vendors of choice.
AON solicited best and final offers from the two most responsive proposers (United Health Care and Cigna) and developed/presented a summary evaluation of their findings and plan options for my consideration on May 11, 2016 (see attached evaluation). During the review and based on issues associated with the City carving out its drug benefit plan, options #2 and #4 were eliminated from consideration and, options #1 (Keep UHC for medical and pharmacy) and #3 (Replace UHC with Cigna, including use of Cigna's PBM) remained.
The evaluation information provided by AON for options #1 and #3 was scored and weighted in following four categories: Medical Financial Assessment, (40%), Pharmacy Financial Assessment (20%), Network Formulary Assessment (20%) and Administrative Requirements (20%). All criteria for both proposers rated in the "standard" range or above....
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