Title
Employee Medical Health Plans, Contract Extensions (Ordinance S-48862)
Description
Request to authorize the City Manager, or his designee, to execute amendments to contract 151578 with Blue Cross Blue Shield of Arizona Inc. ("BCBSAZ") and contract 151607 and amendment no. 1 thereto with Banner Health and Aetna Health Insurance Company ("Banner/Aetna") and its assignee, Banner Employer Services, LLC ("Banner Employer") the operator of the near site clinic to extend the terms of those agreements for an additional year, effective Jan. 1, 2024 through Dec. 31, 2024. Further request to authorize the City Controller to disburse all funds related to this item. The additional expenditures will not exceed $8,500,000.
Report
Summary
These contracts need a one-year extension to allow the Human Resources Department to work with a consultant to develop the scope of work and evaluation criteria, conduct a formal solicitation for the medical health plans, complete transition of health plans including all programming in eCHRIS, and prepare employee communications and open enrollment. Approval of the contract extensions will result in uninterrupted health benefits to city employees and their dependents.
Procurement Information
The contracts were originally procured through a competitive Request for Proposal (RFP) process in 2018, in accordance with City policy.
Contract Term
Upon approval the contracts will be extended through Dec. 31, 2024.
Financial Impact
Upon approval of $8,500,000 in additional funds, the revised aggregate value of the contract will not exceed $41,000,000. Employee contributions account for approximately 20 percent of these funds. The costs for these services are paid by the Health Care Benefits Trust Fund.
Concurrence/Previous Council Action
The initial contracts were approved by City Council on Aug. 29, 2018 (Ordinance S-44951).
Department
Responsible Department
This item is submitted by Assistant City Manager Lori Bays and the Human Resources Department.