Title
RFP No. 2020-080 - Retiree Medicare Supplement Plan.
(Authorize the City Manager to finalize and execute the necessary documents with selected vendor for Post-65 Retiree Medical and Prescription Drug Plan, effective January 1, 2021. The term of this contract is for one year, 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
$1,102,100.00
Sum of Bid/Bid Amount
$1,179,961.00
The City of Mesquite provides a fully insured Group Medicare Supplemental Plan to its retirees over the age of 65. The City provides $68/month contribution to retirees and $16/month contribution to retiree spouses.
The City's three-year agreement with Group Administrative Concepts, (GAC) Inc., ends, effective December 31, 2020. Requests for Proposals (RFP 2020-080) were issued to procure a new agreement to provide Medicare Supplement coverage accordingly. Bid documents were broadcast through the BidSync electronic bidding system, posted on the City's website and an Advertisement for Bid Notice was published in the Daily Commercial Record newspaper. Five proposals were received for a Medicare Advantage plan from Blue Cross Blue Shield, Aetna, Cigna, Retiree First and GAC (Hartford). GAC continues to offer the best options with the best rates as follows:
Hartford/Express Scripts
2020 2021
High Option: N/A $ 371.99
Low Option: N/A $ 329.39
The Hartford/Express Scripts benefits are equal to or superior to the current plan with United American/Express Scripts and will save retirees $232 and $168 per year respectively. Because of this, staff recommends entering into a new five-year agreement with GAC utilizing the Hartford/Express Scripts option for 2021.
Recommended/Desired Action
Staff recommends City Council authorize the City Manager to execute the necessary documents with GAC for the Post- 65 Retiree Me...
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