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File #:
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24-748
Version:
1
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Name:
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Type:
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Other Bids, Contracts, Procurements
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Status:
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Agenda Ready
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On agenda:
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6/4/2024
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Final action:
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Title:
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The linkage to the Strategic Plan is subsection: 6.2 Implement employee benefits and services that promote financial security.
Award Summary:
Discussion and action on the award of Solicitation No. 2024-0233R Health Insurance Benefits Administrators to the following suppliers: 1) Aetna Dental Inc. - Aetna Life Insurance Company, 2) Colonial Life & Accident Insurance Company, 3) Dearborn Life Insurance Company - Blue Cross Blue Shield of TX, 4) Deer Oaks EAP Services, LLC, 5) Health Care Service Corporation, a Mutual Legal Reserve Company dba Blue Cross Blue Shield of TX, 6) Metropolitan Life Insurance Company - Safeguard Health Plans, Inc., 7) WEX Health, Inc., for an initial term of three (3) years for an estimated amount of $234,383,214.00. The award also includes a two (2), two (2) year option for an estimated amount of $312,510,952.00. The total amount of the contract, including the initial term plus the option for a total of seven (7) years, is for an estimated amount of $546...
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CITY OF EL PASO, TEXAS
LEGISTAR AGENDA ITEM SUMMARY FORM
DISTRICT, DEPARTMENT, CONTACT INFORMATIOn:
Please choose District and Department from drop down menu. Please post exactly as example below.
No Title’s, No emails. Please use ARIAL 10 Font.
Details
All Districts
Purchasing and Strategic Sourcing, K. Nicole Cote, (915) 212-1092
Human Resources, Mary L. Wiggins, (915) 212-1267
End
AGENDA LANGUAGE:
This is the language that will be posted to the agenda. Please use ARIAL 11 Font.
Title
The linkage to the Strategic Plan is subsection: 6.2 Implement employee benefits and services that promote financial security.
Award Summary:
Discussion and action on the award of Solicitation No. 2024-0233R Health Insurance Benefits Administrators to the following suppliers: 1) Aetna Dental Inc. - Aetna Life Insurance Company, 2) Colonial Life & Accident Insurance Company, 3) Dearborn Life Insurance Company - Blue Cross Blue Shield of TX, 4) Deer Oaks EAP Services, LLC, 5) Health Care Service Corporation, a Mutual Legal Reserve Company dba Blue Cross Blue Shield of TX, 6) Metropolitan Life Insurance Company - Safeguard Health Plans, Inc., 7) WEX Health, Inc., for an initial term of three (3) years for an estimated amount of $234,383,214.00. The award also includes a two (2), two (2) year option for an estimated amount of $312,510,952.00. The total amount of the contract, including the initial term plus the option for a total of seven (7) years, is for an estimated amount of $546,894,166.00. The initial period of performance is from December 15, 2024 - December 14, 2027.
Contract Variance:
The difference based in comparison to the previous contracts is as follows: An increase of $64,980,424.20 for the initial term, which represents a 38.36 % increase due to due to price increases.
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Department: |
Human Resources |
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Award to Supplier 1: |
Aetna Dental Inc. - Aetna Life |
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Insurance Company |
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City & State: |
Hartford, CT |
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Item(s): |
ASO Medical, Pharmacy, U65 Medical, |
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Medicare Advantage, HSA, FI Dental PPO, |
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ASO Dental, ASO Vision |
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Initial Term: |
3 Years |
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Option Terms: |
2 - 2 Years |
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Total Contract Time: |
7 Years |
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Annual Estimated Award: |
$ 76,365,548.33 |
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Initial Term Estimated Award: |
$229,096,645.00 |
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Option Term Estimated Award: |
$305,462,193.33 |
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Total Estimated Award: |
$534,558,838.33 |
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Award to Supplier 2: |
Colonial Life & Accident Insurance |
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Company |
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City & State: |
Chattanooga, TN |
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Item(s): |
Disability Insurance |
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Initial Term: |
3 Years |
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Option Terms: |
2 - 2 Years |
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Total Contract Time: |
7 Years |
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Annual Estimated Award: |
$141,212.67 |
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Initial Term Estimated Award: |
$423,638.00 |
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Option Term Estimated Award: |
$564,850.67 |
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Total Estimated Award: |
$988,488.67 |
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Award to Supplier 3: |
Dearborn Life Insurance Company - |
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Blue Cross Blue Shield of TX |
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City & State: |
Lombard, IL |
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Item(s): |
Basic Life Insurance, Voluntary Life |
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Insurance, FI Vision |
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Initial Term: |
3 Years |
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Option Terms: |
2 - 2 Years |
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Total Contract Time: |
7 Years |
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Annual Estimated Award: |
$1,421,769.67 |
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Initial Term Estimated Award: |
$4,265,309.00 |
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Option Term Estimated Award: |
$5,687,078.67 |
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Total Estimated Award: |
$9,952,387.67 |
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Award to Supplier 4: |
Deer Oaks EAP Services, LLC |
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City & State: |
San Antonio, TX |
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Item(s): |
EAP |
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Initial Term: |
3 Years |
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Option Terms: |
2 - 2 Years |
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Total Contract Time: |
7 Years |
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Annual Estimated Award: |
$ 69,495.00 |
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Initial Term Estimated Award: |
$208,485.00 |
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Option Term Estimated Award: |
$277,980.00 |
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Total Estimated Award: |
$486,465.00 |
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Award to Supplier 5: |
Health Care Service Corporation, |
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a Mutual Legal Reserve Company |
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dba Blue Cross Blue Shield of TX |
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City & State: |
Chicago, IL |
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Item(s): |
COBRA |
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Initial Term: |
3 Years |
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Option Terms: |
2 - 2 Years |
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Total Contract Time: |
7 Years |
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Annual Estimated Award: |
$ 6,000.00 |
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Initial Term Estimated Award: |
$18,000.00 |
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Option Term Estimated Award: |
$24,000.00 |
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Total Estimated Award: |
$42,000.00 |
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Award to Supplier 6: |
Metropolitan Life Insurance Company- |
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Safeguard Health Plans, Inc. |
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City & State: |
New York, NY |
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Item(s): |
FI Dental HMO |
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Initial Term: |
3 Years |
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Option Terms: |
2 - 2 Years |
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Total Contract Time: |
7 Years |
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Annual Estimated Award: |
$122,940.33 |
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Initial Term Estimated Award: |
$368,821.00 |
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Option Term Estimated Award: |
$491,761.33 |
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Total Estimated Award: |
$860,582.33 |
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Award to Supplier 7: |
WEX Health, Inc. |
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City & State: |
Portland, ME |
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Item(s): |
FSA |
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Initial Term: |
3 Years |
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Option Terms: |
2 - 2 Years |
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Total Contract Time: |
7 Years |
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Annual Estimated Award: |
$ 772.00 |
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Initial Term Estimated Award: |
$2,316.00 |
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Option Term Estimated Award: |
$3,088.00 |
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Total Estimated Award: |
$5,404.00 |
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Total Annual Estimated Award: |
$ 78,127,738.00 |
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Total Initial Term Estimated Award: |
$234,383,214.00 |
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Total Option Term Estimated Award: |
$312,510,952.00 |
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Total Estimated Award: |
$546,894,166.00 |
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Account(s) |
209 - 3500 - 14045 - 521120 - P1414 |
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209 - 3500 - 14045 - 521380 - P1414 |
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209 - 3500 - 14045 - 522000 - P1414 |
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209 - 3500 - 14045 - 521180 - P1414 |
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209 - 3500 - 14045 - 521190 - P1414 |
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209 - 3500 - 14045 - 521200 - P1414 |
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209 - 3500 - 14045 - 521410 - P1414 |
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209 - 3500 - 14045 - 521420 - P1414 |
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Funding Source(s): |
Self-Insured Health Insurance, Benefit |
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Payments, Benefits Administrators (TPA), |
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Dental Premium, Optical Premium, |
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Life Premium, Pharmaceutical |
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Administrator, EAP, Benefit Administrator |
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District(s): |
All |
This was a Request for Proposals Procurement, service contract.
The Purchasing & Strategic Sourcing Department and Human Resources recommend award as indicated to 1) Aetna Dental Inc. - Aetna Life Insurance Company, 2) Colonial Life & Accident Insurance Company, 3) Dearborn Life Insurance Company - Blue Cross Blue Shield of TX, 4) Deer Oaks EAP Services, LLC, 5) Health Care Service Corporation, a Mutual Legal Reserve Company dba Blue Cross Blue Shield of TX, 6) Metropolitan Life Insurance Company - Safeguard Health Plans, Inc., 7) WEX Health, Inc., the highest ranked offerors based on the evaluation factors established in the evaluation criteria for this procurement. It is also recommended to deem Continental American Insurance Company dba AFLAC Group, CuraLinc LLC dba CureLinc Healthcare, Independent Eye Care MSO, Inc. dba Community Eye Care, LLC, Interflex Payments LLC dba Ameriflex, Minnesota Life Insurance Company, National Benefit Services, LLC and Trustmark Insurance Company nonresponsive due to failure to furnish required documentation with their proposal.
It is requested that the City Manager be authorized to establish the funding sources and make any necessary budget transfers and execute any and all documents necessary for execution of this award.
In accordance with this award, the City Manager or designee is authorized to exercise future options if needed.
Additionally, it is requested that the City Attorney's Office review and that the City Manager or designee be authorized to execute any related contract documents and agreements necessary to effectuate this award.
End
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