Title
RFP No. 2026-073 – Administrative Services Only (ASO) for Medical and Pharmacy Benefits.
(Authorize the City Manager to finalize and execute a Third-Party Administrator Services Agreement with Blue Cross and Blue Shield of Texas (BCBS) to provide medical coverage for full-time employees and underage 65 retirees effective January 1, 2027, through December 31, 2027. The term of the contract is for a one-year period, with four additional one-year renewal options. The City Manager is authorized to exercise the renewal options, subject to annual appropriation of sufficient funds.)
Body
Name of Department
Human Resources
Project/Budgeted Amount
$257,941.80
Sum of Bid/Bid Amount
$257,941.80
The City of Mesquite issued a Request for Proposal for Administrative Services Only - Medical and Pharmacy Benefits. Bid documents were broadcast through BidNet Direct electronic procurement system.
The City received three bids for a third-party claim’s administrator including one from the City’s current carrier Blue Cross and Blue Shield of Texas (BCBS), Atena and Cigna. The City’s benefits consultant, McGriff, Marsh and McClellan Agency LLC Company, reviewed and evaluated the proposals with staff.
BCBS provided a proposal that would allow the City to continue with current services with the lowest projected cost increase compared to the other bids received by the City, saving plan participants and the City on health care services. BCBS has a dedicated services team in the metroplex and provided additional performance guarantees in its proposal. Additionally, BCBS committed to continuing to partner with the City of Mesquite to support the health of City employees/retiree through various online programs and cost-containment initiatives.
Financial Implications
This item is funded by the City’s Group Medical Fund.
Recommended/Desired Action
Staff recommends the City Manager be authorized to finalize and execute the Blue Cross and Blue Shield Administrative Service ...
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