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City of Houston budget and FISCAL AFFAIRS COMMITTEE January 8, 2019

Briefing on the selection process and recommendation of a Third-Party Administrator for the Self-Funded Medical Health Plan with Chronic Disease Management Services by the Human Resources Department.

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City of Houston budget and FISCAL AFFAIRS COMMITTEE January 8, 2019

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  1. City of Houstonbudget and FISCAL AFFAIRS COMMITTEEJanuary 8, 2019 Third-Party Administrator for Self-Funded Medical Health Plan with Chronic Disease Management Services Briefing by Human Resources Department

  2. OVERVIEW • The Third Party Administrator (TPA) for the Medical Insurance Plan will provide medical services to active full-time and part-time 30 employees, retirees, elected officials and their dependents, not only locally, but nationally as well. • The City of Houston (COH) medical plan is self-insured. • The medical plan will consist of three different plan designs that will provide comprehensive medical coverage and chronic disease management services. • The plan will be effective May 1, 2019.

  3. PROCUREMENT PROCESS • Request for Proposals (RFPs) for the Medical Plan Third-Party Administrator (TPA) and Chronic Disease Management (CDM) program services for the City of Houston was released June 1, 2018. • Responses were due July 19, 2018. • Four (4) vendors proposed to provide TPA Services for the medical plans and CDM program: • Aetna • Blue Cross Blue Shield of Texas • CIGNA Health and Life Insurance Company (Cigna) • UnitedHealthcare

  4. PROCUREMENT PROCESS CONT’D Criteria for evaluation of proposals: • The ability of the vendor to perform the Scope of Services requested in the RFP • Quality and specialized experience of Key Personnel to successfully implement the project as evidenced by experience in a similar role with a previous project • Financial competitiveness and guarantees against rate escalation over a multi-year contract • Accessibility of network providers with minimum disruption to members • The ability of the vendor to provide the best value for the dollars that the city and employees will expend • Ability to meet the required 15% proposed M/WBE Participation for the TPA/CDM services

  5. PROCUREMENT PROCESS CONT’D Due Diligence Considerations: • Responses to Letters of Clarifications • Interviews • Reporting Systems • City’s access to reporting systems: Claims and Financial • Responses to the City’s minimum business and contractual guarantees • Health improvements programs and reporting • Transfer of data to a City designated data warehouse • Stable member outreach and customer service • Network structure and discounts • Competitive pricing

  6. HIGHLIGHTS • Five Year contract with two one-year options • Nine (9) full-time onsite customer service and clinical staff and four (4) temporary staff as needed, to include but not limited to: • Customer Service Representatives • Nurse • Registered Dietitians • Wellness Coordinator • Case Manager • Health Educators • Exercise Physiologists • Enhanced Chronic Disease Management Program • Vendor has agreed to provide all reports and access to data at no additional costs.

  7. RECOMMENDATION Approve: The recommended Third-Party Administrator for the Self-Funded Medical Health Plan with Chronic Disease Management Services.

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