ITEM TITLE:
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Health Insurance Review Committee: Status of Broker/Consultant Review Report
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SUBMITTED BY: Brian Carlson, Finance Director
FISCAL NOTES:
Expenditure Required: N/A
Unencumbered Balance: N/A
Funding Source: N/A
RECOMMENDATION:
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receive and file
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SUMMARY STATEMENT:
This report apprises Council of a recommended change in the City's Health Insurance Broker/Consultant, which will be presented for formal adoption in January.
* Staff retained a specialist attorney in October to assist in a review of the City/School Health Insurance plan.
* Staff published an RFP for broker/consultant services.
* An administrative committee representing employees and management of City and Schools was formed to review the RFP replies.
* The committee recommends a change in the broker/consultant relationship, which will be formalized in a contract to be presented to Council in January.
* This change entails no change to the plan structure at this time.
* Benefits plan changes must be approved by Council.
BACKGROUND:
In an ongoing effort to proactively address both the rising costs of health care, and the overall quality of the health insurance plan, the Finance Director has recently established a working group (Health Insurance Review Committee), comprised of one representative each from the ERT, City Management (Police Chief), School Administration (School Finance Director), School District employees union (Mayor Knight), plus the Finance and Human Resources Directors.
This group is tasked with review and assessment of the health benefit plan, with the help and input of an attorney who specializes in group health plans and related regulations. The objective is to balance the plan attributes with cost containment, so as to optimize and sustain this recruitment and retention tool.
ANALYSIS:
The specialist/attorney and Finance Director began their assessment by briefly exploring the possibility of merging with another public-sector plan. This o...
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