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TO: Mayor Richard C. Irvin
FROM: Alisia Lewis, Director of Human Resources
DATE: September 19, 2018
SUBJECT:
A Resolution Authorizing Renewal of Benefit Consulting Services with Group Alternatives, Inc. For the Period of January 1, 2019 through December 31, 2021.
PURPOSE:
To obtain authorization to renew the agreement with Group Alternatives, Inc. for benefit consulting services.
BACKGROUND:
Group Alternatives, Inc. is a benefit consulting firm specializing in large employers, partnering with clients to control costs and maximize benefit offerings. The City first began utilizing Group Alternatives' 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, Group Alternatives has provided services including but not limited to, securing the Aetna 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 Aetna Medicare Advantage.
DISCUSSION:
Group Alternatives has been instrumental in assisting the City with implementing cost effective changes while at the same time maintaining a robust benefit plan for our employees and retirees. Their recommendation to convert the Medicare eligible retirees to Aetna Medicare Advantage this year, beginning January 1, 2018, has resulted in a reduction to city funding of $3,946,924. Group Alternatives has negotiated a 2019 renewal cost at a 9.2% decrease, which will yield a savings of $166,533. They also negotiated a renewal agreement with Blue Cross Blue Shield HMO for a 2.4% decrease or $258, 482. in annual savings for 2019. The Cigna OAP 2019 renewals comes with a 5 month administration credit of $123,965, a $100,000 Wellness Fund and the addition ...
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