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CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION
From: LINN LIVINGSTON, DIRECTOR Subject: REQUEST FOR PROPOSAL
OF HUMAN RESOURCES FOR INSURANCE BENEFITS
Dept: HUMAN RESOURCES
Date: MAY 30, 2007
M/CC Meeting Date: JUNE 4, 2007
Synopsis of Previous Council Action:
On August 4, 2003 the Mayor and Council approved the Resolution(s) electing to
discontinue Health Insurance Services with CalPERS and agreed to partnership with
Driver Alliant Insurance Services for broker services regarding health insurance
benefits.
On March 19, 2001 the Mayor and Council authorized the selection of Robert F. Driver
Company as the City's Property Insurance Broker.
Recommended Motion:
Receive and File
Signature
Contact person: Linn Livingston Phone: 384-5161
Supporting data attached: Ward:
FUNDING REQUIREMENTS: Amount: No Cost
Source: (Acct. No.)
(Acct. Description)
Finance:
Council Notes:
Agenda Item No.
CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION
Staff Report
Subiect•
Request for Proposal for Insurance Benefits.
Background:
The City provides health care plans for all eligible employees. Previously the City contracted
with Ca1PERS for health insurance benefits, however, since August 2003 the City moved into a
partnership with Alliant Insurance Services (formerly Driver Alliant Insurance Services)to allow
for flexibility to the City's health insurance plans. Alliant Insurance Services was serving as the
City's property broker at the time of the transition of the health care plan.
The City currently provides health care plans for approximately 1500 active employees, 300
retirees, and 35 former employees utilizing COBRA benefits.
The following is representation of services currently provided by Alliant:
• Enrollment Execution
• Retiree Billing
• COBRA Administration
• Benefit Committee Participation
• Service Issue Resolution
• Annual Renewal Negotiations
• Full Benefit Consulting
• Statistical Analysis of utilization
Attachment"A" outlines the process that Alliant Insurance Services goes through annually to
provide the most cost effective plans for the City.
Given the current budget situation the City has decided to consider further cost saving options,
which includes going out to bid for Health Insurance Broker services. Packets will be
mailed/faxed on June 4, 2007 to:
Marsh/McLennan
Gallagher Benefit Services
ABD Insurance & Financial Services
Alliant Insurance Services
All of the above are known to specialize in Public Sector Markets. In an effort to maximize the
City's options, information will be posted on the City Web-site and mailed to the Chamber of
Commerce. Additionally, the City will be exploring returning to Ca1PERS for health insurance
benefits.
Property Insurance coverage runs on a fiscal year basis beginning each July 1St. It would be
difficult to re-bid the policy at this time due to the extensive process,which includes inspection
of city facilities and vehicles prior to July 1, 2007. Therefore,we recommend that the bid
process for property insurance be initiated during FY 2007-2008 and implemented in July 2008.
Financial Impact:
No financial impact.
Recommendation:
Receive and File
i
Attachment"A"
Marketing/Renewal Strategy
Process used by Alliant to provide the most cost effective health insurance annually.
1. Review current utilization from all carriers and have pre-renewal discussions with all of
the City's current carriers.
2. Conduct the pre-renewal meeting with the City's Benefits Committee.
3. Meet with Kaiser's executive and management teams to discuss the new underwriting
methodology and review the Alliant and City specific reporting package.
4. Meet with PacifiCare to discuss current utilization and renewal options.
5. Provide the City with a thorough analysis of the City's current benefit plans against those
offered through Ca1PERS, allowing the City the ability to decide which option is more
advantageous to the City employees.
6. For insurance year 2008 Alliant has gone out to bid on the following coverages:
a. Medical
1. Aetna
2. Blue Cross
3. Blue Shield
4. CIGNA
5. Health Net
6. Great West
7. Other alternative purchasing programs—CSAC EIA Health
b. Medical Options—requested additional plan options including: funding options,
carve-out options, rating options, plan design options, consolidation options.
c. Dental
d. Vision—Currently in the middle of a three year rate guarantee with EyeMed
e. Life/AD&D and Disability—We are currently evaluating the market, and have
requested quotes from the following carriers:
1. Principal
2. Standard
3. SunLife
4. Lincoln Financial
5. MetLife �
6. Guardian
7. Hartford
8. Unum
9. CIGNA
10. Other alternative purchasing programs—CSAC
Open Enrollment by Alliant:
1. Once coverages, carriers and rates have been determined, Alliant finalizes the
open enrollment communication pieces.
2. Update EBS system with all changes and online services.
3. Send all Retirees and COBRA participants open enrollment packets.
4. Assist with any transitional issues: ID cards, access of care, etc.
5. Attend/Conduct Enrollment meetings.
6. Attend health fair.