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HomeMy WebLinkAbout16-Human Resources CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Linn Livingston, Director of Human Resources Subject: Broker and Health Administration Services. Dept: Human Resources Date: July 9, 2007 MICC Meeting Date: July 16, 2007 Synopsis of Previous Council Action: Recommended Motion: Authorize the City Manager to negotiate the terms of the contract with Mercer Health & Benefits for broker and health administration services. '~~ M"~ Signatur~ Contact person: Linn Livinaston Phone: _384-5161 Supporting data attached: Ward: FUNDING REQUIREMENTS: Amount: None with this action Source: (Acct. No.) (Acct. Description) Finance: Council Notes: .. 120- J~ !J7//~/o7 Agenda1tem No._ CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Staff Report Subiect: Broker and health administration services. Backt!:round: Selection Process Summary In June 2007, the City of San Bernardino Human Resources Department solicited bids for health insurance broker services. In response to the RFP, seven firms submitted proposals. Firms that submitted proposals included: ABD Insurance and Financial Services Alliant Insurance Services Aon Employee Benefits Consulting Gallagher Benefit Services, Inc. Mercer Health & Benefits Morgan & Franz Insurance and Administrative Services Rael & Letson Consultants and Actuaries In June, proposals were reviewed by an evaluation committee, which consisted of the Deputy General Manager of Water, Director of Finance, Deputy Director of Finance, Director of Facilities Management, Director of Human Resources, and Human Resources Supervisor. Based on the review, the committee short-listed three firms including: Alliant Insurance Services Aon Employee Benefit Consulting Mercer Health & Benefits Interviews with the above three firms were conducted by the evaluation committee on July 10, 2007. Following the interviews, the evaluation committee discussed and came to a consensus to recommend selection of Mercer Health & Benefits. Mercer Health & Benefits is a wholly owned subsidiary of Marsh & McLennan Companies, Inc. a Fortune 500 diversified financial services company. They are the largest benefit consulting firm in the world, yet they deliver local services with experienced and expert staff. Mercer has extensive experience working with public sector employers and labor organizations. Mercer has experience with a variety of health plans: HMOs, medical indemnity and PPO plans, consumer-directed plans, carve-out coverages such as Prescription Drug plans, and integrated disease management programs. They also have experience consulting on various supplemental health coverages, including dental plans, vision plans, prescription benefit plans and mental health care plans, as well as specialized programs for retirees. Because Mercer is the largest benefit consulting firm in the world they are constantly interacting with senior level staff at all major health carriers for their clients. As a result, Mercer has more market share with carriers than any other firm, which gives them the ability to negotiate the very best health care rates for their clients. Additionally, Mercer is very sensitive to our employee needs and the continuity of our health care coverage. Mercer currently provides services to the City of Riverside, County of San Bernardino, County of Orange and the City of Anaheim as well as many other public entities. Mercer has proposed health benefits consulting and administration fees that are very competitive. They have guaranteed their annual consulting fees for three years, which are the lowest of all three brokers evaluated at $140,000. Additional fees for administration services will be charged as a flat fee based on negotiations. In addition, Mercer is placing a significant amount of their fees at risk (10%) to guarantee they deliver the most appropriate and valuable service to the City's satisfaction. Staffing Mercer Health & Benefits proposes a local core team of four (4) professionals including three (3) Health & Benefits Consultants, and one (I) Benefits Analyst. The team averages fifteen years of experience in the benefits field. With the Mayor and Common Council approval, City staffwill negotiate the terms of the contract with Mercer Health & Benefits and submit the final contract to the Mayor and Common Council for approval. Financial Imoact: None at this time. Recommendation: Authorize the City Manager to negotiate the terms of the contract with Mercer Health & Benefits for broker and health administration services. .. .' .. . -~ ! _I; .- ~ g C'? .J '0 ;2 .. 1 r; - c3 ~ .:.<: .~ u G: -v . ! , . ! i . i . ~ i . ! ! ~. ! .. ! ~ ~ i ~ j :E , ! en .- 0 .c ~ .. () c- L,"j :.1 'J} (f) ~ ill ,S:! > C- ~-- ..':;! u; (/) - ;;:: CD c Ql en ell .!:: - ctl CD I x (;~ y ~. .... Ql ~ CD ::ii: en Q) U I .. :s i 0 . en Q) . 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