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File #: 1820   
Type: Consent Status: Adopted
File created: 7/1/2020 In control: Human Resources
On agenda: 7/21/2020 Final action: 7/21/2020
Title: 2021 RFP #P-1-20-11 Comprehensive Health Plan Services Contract Award Recommendations
Attachments: 1. Selection Committee Consolidated Evaluation Scoresheet.pdf
2021 RFP #P-1-20-11 Comprehensive Health Plan Services Contract Award Recommendations

Fiscal Impact:
Minimum -$535,000 Year 1 cost reduction with potential additional savings based on premium and plan design recommendations made by the EBIAC and adopted by the Board.
Office of Human Resources / Employee Benefits

Requested Action:
That the Board approve the recommendation of the Office of Human Resources/Employee Benefits and the County's Employee Benefits Insurance Advisory Committee (EBIAC) to award contracts to Cigna Healthcare and Health First Health plan pursuant to the above referenced RFP

Summary Explanation and Background:
The Office of Human Resources/Employee Benefits, through a competitive solicitation process managed by Central Services, conducted a Request for Proposals for Comprehensive Health Plan Services to administer the County's self-funded health plan effective January 1, 2021. The RFP requested options for self-funded administrative services only, integrated Pharmacy Benefit Manager (PBM) services and fully insured health plan options. Proposals were received from Aetna, Cigna, Health First Health Plan (HFHP), Trustmark and UMR. Responses were summarized and presented to the EBIAC on June 4, 2020.

In a unanimous vote, the EBIAC recommended the continued combination of Cigna and HFHP for contract award with guaranteed administrative fees for three (3) years. It is further recommended that Cigna continue to provide PBM services to all health plan participants.

The RFP successfully yielded cost reductions in administrative fees and included enhanced clinical and customer service resources as follows:

1. ASO Fee reduction from current based on proposed and negotiated fees: -$535,000 savings Year 1 (Cigna Year 1 ASO fee holiday of -$426,850 and negotiations with HFHP reducing annual fees by approximately -$108,000. Cigna ASO holidays in Years 2 and 3 will result in additional...

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