HomeMy WebLinkAbout033101 RES - 07/18/2023Resolution authorizing the negotiation and execution of four, five-year service
agreements for the third -party administration of Medical, Dental, and COBRA with
Blue Cross Blue Shield of Texas in an estimated total annual amount up to
$1,750,140; Pharmacy Benefit Management with Caremark PCS Health, LLC. in an
estimated amount up to $11,121 annually; Life & Accidental Death and
Dismemberment with Blue Cross Blue Shield of Texas in an estimated amount up
to $97,464 annually; and, Long -Term Disability with Blue Cross Blue Shield of
Texas in an estimated amount up to $106,451 annually, for a total estimated amount
up to $1,965,176 annually for the City's self-funded employee health benefits, with
an estimated five-year total value in an amount up to $9,825,880.
WHEREAS, the City's health benefits care plans, administered by the Human
Resources Department, provide eligible active employees, retirees, and their eligible
spouses and dependents the choice to elect the City's self-funded employee health
benefit plans;
WHEREAS, with the assistance of the City's benefit consultant, HUB International
Insurance Services, a Request for Proposals to provide third -party administration of the
City's self-funded employee health benefit plans was advertised and issued on March 27,
2023;
WHEREAS, an evaluation team composed of City staff and the consultant
reviewed the responses and unanimously recommends that contracts providing the best
value to the City be offered to Blue Cross Blue Shield of Texas ("BCBSTX") for medical,
dental, life insurance, accidental death and dismemberment (AD&D), and long-term
disability claims; and to Caremark PCS Health ("Caremark") for pharmacy claims, each
of the contracts having a five-year term; and
WHEREAS, the City Council finds that contract awards to BCBSTX and
Caremark provide the best value to the City for third -party administration services for
the employee health benefit plans.
Now, therefore, be it resolved by the City Council of the City of Corpus Christi,
Texas:
Section 1. The City Manager, or his designee ("City Manager"), is authorized to negotiate
and execute three separate five-year contracts with BCBSTX for third -party administration
of the City's employee health benefit plans as follows: medical, dental, and COBRA for an
estimated annual amount of $1,750,140 (five years: $8,750,700); basic life and AD&D for
an estimated annual amount of $97,464 (five years: $487,320); and long-term disability for
an estimated annual amount of $106,451 (five years: $532,255), with each contract
beginning October 1, 2023, subject to budget approval.
Section 2. The City Manager is authorized to negotiate and execute a five-year contract
with Caremark PCS Health, LLC, for third -party administration of the City's pharmacy
benefit plan for an estimated annual amount of $11,121 (five years: $55,605), with the
contract beginning October 1, 2023, subject to budget approval.
033101
Page 1 of 2
SCANNED
PASSED AND APPROVED on the 1(611/\ day of
Paulette Guajardo
Roland Barrera
Sylvia Campos
Gil Hernandez
Michael Hunter
Michael T. Hunter
Jim Klein
Mike Pusley
Everett Roy
Dan Suckley
ATTEST:
, 2023:
IV
Rebecca Huerta
City Secretary
-G1 Y OF CORPUS CHRISTI
Paulette Guajar•o
Mayor
0 3 3 1 -1
Page 2 of 2
CITY OF CORPUS CHRISTI
CERTIFICATION OF FUNDS
(City Charter Article IV, Sections 7 & 8)
I, the Director of Financial Services of the City of Corpus Christi, Texas (or his/her duly
authorized representative), hereby certify to the City Council and other appropriate officers that
the money required for the current fiscal year's portion of the contract, agreement, obligation
or expenditure described below is in the Treasury to the credit of the Fund specified below, from
which it is to be drawn, and has not been appropriated for any other purpose. Future payments
are subject to annual appropriation by the City Council.
City Council Action Date: July 18, 2023 Legistar Number: 23-1073
Agenda Item:
Resolution authorizing the negotiation and execution of four, five-year service agreements for
the third -party administration of Medical, Dental, and COBRA with Blue Cross Blue Shield of
Texas in an estimated total annual amount up to $1,750,140; Pharmacy Benefit Management
with Caremark PCS Health, LLC. in an estimated amount up to $11,121 annually; Life &
Accidental Death and Dismemberment with Blue Cross Blue Shield of Texas in an estimated
amount up to $97,464 annually; and, Long -Term Disability with Blue Cross Blue Shield of
Texas in an estimated amount up to $106,451 annually, for a total estimated amount up to
$1,965,176 annually for the City's self-funded employee health benefits, with an estimated five-
year total value in an amount up to $9,825,880.
Amount Required: $ 0.00
Fund Name
Accounting Unit
AcNoount
Activity No.
Amount
5608, 5609, 5610
Health Funds
Misc.
Misc
n/a
$0.00
5614 Other EE Benefits
Dental, Life, LTD
40610
Misc
n/a
$0.00
Total
$0.00
x Certification Not Require
ait„,„
deiuri,„ Director of Financial Services
Date: