CC MEETING: December 5, 2023
DATE: November 29, 2023
TO: Erin Rinehart, City Manager
FROM: Samantha Dean, Workforce Services Director
Chrystal Davis, Assistant City Manager
Title
Consider Approval Of Proposals For RFP#23-041 For Stop Loss Coverage To SA Benefits - Zurich, Medical Risk Managers, For Stop Loss Coverage In An Amount Not To Exceed $102 Per Employee Per Month, And To Isolved For FMLA Administration For 2024 In An Annual Amount Not To Exceed $22,317 With A Total Contract Amount Not To Exceed $66,951.
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BACKGROUND:
In September 2023, the City issued RFP #23-041 for Stop Loss Coverage and FMLA Administration Software.
Bid notifications were posted online, previous and interested vendors were contacted, as well as advertisements placed in the Dallas Morning News. A total of nine (9) responses were received for Stop Loss Coverage and three (3) responses for FMLA Administration.
Regarding Stop Loss coverage, the City’s health plan is self-funded. The City purchases stop loss coverage both at an individual and an aggregate level for cost containment purposes to protect the Plan from excessive/large claims. The current incumbent offered a renewal at the lowest premium rate, a lock in rate guarantee and no additional high-cost claim lasers.
A goal for the Workforce Services team is to achieve operational efficiency by leveraging technology to automate processes. With the Isolved solution, Workforce Services will be able to proactively manage various employment leave cases pertaining to the Family Medical Leave Act (FMLA), Americans with Disabilities Act (ADA), Uniformed Services Employment and Reemployment Rights Act (USERRA), worker’s compensation and Texas Local Government Code Chapter 143 mandating injury leave for Civil Service employees. Isolved not only offered a more competitive price point but provided a technology platform and integrated employer / member support that was unmatched by other respondents.
FINANCIAL IMPLICATIONS:
Funds for Stop Loss coverage will be paid from the employee health fund. SA Benefits - Zurich, Medical Risk Managers, proposes a .8% rate decrease and no new lasers.
Isolved offered the most competitive price point at $22,317 per year with a 3-year rate guarantee. Funds for FMLA leave administration software were approved in the FY24 budget.
STAFF RECOMMENDATION/ACTION DESIRED:
Staff recommends contracts be awarded to SA Benefits - Zurich, Medical Risk Managers, for Stop Loss Coverage and Isolved for the FMLA leave administration for 2024.