cover
TO: Mayor Richard C. Irvin
FROM: Alisia Lewis, Chief Human Resources Officer
DATE: August 27, 2024
SUBJECT:
A Resolution Authorizing Renewal of Benefit Consulting Services with Assured Partners, formerly Group Alternatives, Inc, for the Period of January 1, 2025 through December 31, 2027.
PURPOSE:
To obtain authorization to renew the agreement with Assured Partners for benefit consulting services.
BACKGROUND:
Assured Partners is a benefit consulting firm specializing in large employers, partnering with clients to control costs and maximize benefit offerings. The City first began utilizing Assured Partners services in 2015 to facilitate the RFP process for the third-party administration of benefits. They assisted the City through the evaluation period which resulted in CIGNA being selected for the City's third-party administration (TPA). Since that time, Assured Partners has provided services including but not limited to, securing the Humana Health Plan for Medicare eligible retirees, funding analysis, financial and compliance implications of legislative changes, provider network analysis including access and claim impact, ombudsmen with Cigna, Blue Cross and Blue Shield and Humana Medicare Advantage.
DISCUSSION:
Assured Partners continues to be instrumental in assisting the City with implementing cost effective changes while at the same time maintaining a robust benefit plan for the City's employees and retirees. Their recommendation to move the City PPO and Value HSA(HDHP) plans to Blue Cross Blue Shield of Illinois (BSBSIL) beginning January 1, 2025, will result in a guaranteed savings of 700,000. They also negotiated a renewal agreement with Blue Cross Blue Shield HMO for a 0% increase from the initial 5.6% for a savings of $500,000.
The data analytics that Assured Partners uses will continue to help the City mitigate rising cost and plan for the future.
The City is recommending to enter into agreement with Assured Partners for continuing services. This will also include the addition of their Member Advocacy Program (MAP), a value-added service that provide employees with personalized support and consultation when they need assistance navigating through billing questions, medical care and more. The fee for the three months will be waived and the City will have the option of cancelling services if not satisfactory.
The cost per employee per month (PEPM) is $2.00, $43,752 each year (3 months waived, 15-month commitment).
This is a 3-year contract, $52,500 each year. There was no increase from the previous 3-year contract.
Council approval is needed for professional services over $25,000.
The City Budget provides for this item in account 101-1220-602-0000-410-4599. Attached is the agreement for your reference.
IMPACT STATEMENT:
N/A
RECOMMENDATIONS:
That the City Council authorize renewal of a three (3) year agreement with Assured Partners to provide benefit consulting services.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Authorizing Renewal of Benefit Consulting Services with Assured Partners, formerly Group Alternatives, Inc, for the Period of January 1, 2025 through December 31, 2027.
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City of Aurora is in need of benefit consulting services; and
WHEREAS, the City desires to enter into a renewal contract with Assured Partners for consulting service related to benefits management; and
WHEREAS, the 2025 City Budget provides $52,500 for this item in account 101-1220-602-0000-410-4599.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that a renewal contract for year beginning January 1, 2025 through December 31, 2027 is hereby approved for the purpose of benefit consulting services.