Title
Consider and take action on a resolution authorizing an agreement with Higginbotham Insurance Agency, Inc. for health benefit consultation services in the amount not to exceed $109,000.00 per year with an option to renew the agreement for two additional one year periods (Director of Human Resources)
Background:
Approval of this item will award a contract in the amount not to exceed $109,000 to Higginbotham to represent the City of League City as benefit consultant.
For the past 2 years (May 1, 2014 to April 30, 2016) the City has been represented by IPS Advisors, LLP.
The City issued a Request for Proposals (RFP 16-021) from qualified firms on February 8, 2016, to perform benefits consulting services for the benefits plan year October 2016 - September 2017, with an option for additional years. The City received four proposals. A committee of 3, consisting of the Assistant City Manager, Director of Human Resources and Sr. Human Resources Specialist, reviewed the proposals. Based upon the result of those independent evaluations, references were checked for all 4 firms and the committee then interviewed all 4 firms.
Based upon the RFP evaluation criteria of qualifications and experience, company operational information, project design and methodology, references, qualifications, questionnaire, the interview, and scope of services the committee recommends Higginbotham to provide consulting services for League City. The firm has many years experience in local government benefits consulting and are highly qualified to provide this service. Current municipal clients include the cities of Bellaire, Fort Worth, Stephenville, and Granbury.
In addition to benefits consulting, Higginbotham has proposed a custom wellness program and patient advocacy through Compass Professional Services.
Included in the wellness service Higginbotham's wellness director that is dedicated to work with the City to customize the wellness program and work with specific employee groups rather than a program approach of one size fits all. This program will also include monthly wellness newsletters, health fairs and wellness challenges and other activities for all employees. It is designed to encourage wellness and as such not only can impact long term health care cost, but can improve employee morale and build workplace camaraderie. This should enable progress towards our goal of getting all employees to be "owners" of their health, which will help the employee and the City as a whole.
The patient advocate, Compass Professional Service, allows employees to take advantage of lower prices within their existing network by providing price transparency based on tens of millions of medical claims, giving employees information to make cost and quality comparisons. The service works with physician's office and assists with scheduling of appointments for service such as MRI, CAT Scan, etc. at the most cost effective facilities, benefitting employees and the City alike.
League City will have a dedicated claims advocate available for support via a 1-800 number for employees seeking assistance with claim questions, education on benefits available and eligibility for benefits.
The contract includes:
$69,650 consulting services
$15,000 wellness program
$24,350 Compass
$109,000 Total
Attachments
1. Data Sheet
2. Proposed Resolution
3. Proposed Contract
CONTRACT ORIGINATION : City Attorney
FUNDING
{ } NOT APPLICABLE
{ X} Funds are available from Account #010-1501-604-5305 an annual amount of $49,500 .
{X } Requires Budget Amendment due to enhanced services the remaining funds will be provided by savings available in the Employee Benefits fund 038.