Title
Employee Medical Health Plans Administrative Services - RFP HR 23-001 - Request for Award (Ordinance S-50853)
Description
Request to authorize the City Manager, or his designee, to enter into contracts with Banner Health and Aetna Health Insurance Company, and Blue Cross Blue Shield of Arizona, Inc., to provide Employee Medical Health Plan Administrative Services for the Human Resources Department. Further request to authorize the City Controller to disburse all funds related to this item. The total value of the contracts will not exceed $85,000,000.
Summary
Banner Health and Aetna Health Insurance Company and Blue Cross Blue Shield of Arizona, Inc., will partner with the City to provide self-funded, sustainable, and competitive Medical Health Care Plan administrative services and a range of health service solutions to the City's eligible employees and their eligible dependents. The contractors will provide access to quality health care networks through a Health Maintenance Organization (HMO), a Preferred Provider Organization (PPO), or High Deductible Health Plan with a Health Savings Account (HSA). These health plan options include access to comprehensive benefits which include primary care, specialty care, behavioral and mental health care, urgent care facilities, hospital emergency room, and access to various clinical programs supporting member health to include diabetes and hypertension disease management. Additional services includes claims processing, adjudication and administrative services, coordination of benefits, and third party payments and recovery. These services are essential to eligible City employees and their eligible dependents enrolled in a City sponsored medical health plan. City sponsored medical health plans are part of the City's benefits package.
This item has been reviewed and approved by the Information Technology Services Department.
Procurement Information
A Request for Proposal procurement was processed in accordance with City of Phoenix Administrative Regulation 3.10.
Five Offerors submitted proposals, one was deemed non-responsive, and four were deemed as responsive and responsible offers. An evaluation committee of City staff evaluated those offers based on the following criteria with a maximum possible point total of 1000:
Qualifications, Experience and References (0-250 points)
Method of Approach (0-450 points)
Pricing (0-300 points)
After reaching consensus, the evaluation committee recommends awards to the following vendors as the most responsive and responsible offers most advantageous to the City:
Banner Health and Aetna Health Insurance Company, 911 points
Blue Cross Blue Shield of Arizona, Inc., 968 points
Contract Term
The contracts will begin on or about Jan. 1, 2025, for a five-year term, with one option to extend for an additional one-year term.
Financial Impact
The aggregate contracts value will not exceed $85,000,000. There is no impact to the General Fund. Funding is available in the City's Health Care BenefitsTrust Fund.
Department
Responsible Department
This item is submitted by Assistant City Manager Lori Bays, and the Human Resources Department.