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HomeMy WebLinkAbout03/11/1997 BAKERSFIELD Patricia J. DeMond, Chair Mark Salvaggio Jacquie Sullivan Staff: John W. Stinson AGENDA SPECIAL MEETING PERSONNEL COMMITTEE Tuesday, March 11, 1997 ' 4:15 p.m. , City Manager's Conference Room 1501 Truxtun Avenue, Suite 201 Bakersfield, CA 1. ROLL CALL 2. APPROVAL OF FEBRUARY 3, 1997 MINUTES 3 PRESENTATIONS 4. PUBLIC STATEMENTS 5. DEFERRED BUSINESS A. HEALTH PLAN MARKETING -Stinson 6. NEW BUSINESS 7. ADJOURNMENT JWS:jp DRAFT BAKERSFIELD Alan Tandy, City Manager Patricia J. DeMond, Chair Staff: John Stinson Mark Salvaggio Jacquie Sullivan AGENDA SUMMARY REPORT PERSONNEL COMMITTEE MEETING Monday, February 3, 1997 4:15 p.m. City Manager's Conference Room 1501 Truxtun Avenue Bakersfield, CA 93301 1. ROLL CALL Call to Order 4:20 p.m. Present: Councilmembers Patricia J. DeMond, Chair; Mark Salvaggio and Jacquie Sullivan 2. APPROVAL OF JANUARY 13, 1997 MINUTES Approved as submitted. 3. PRESENTATIONS None 4. PUBLIC STATEMENTS None 5. DEFERRED BUSINESS None AGENDA SUMMARY REPORT PERSONNEL COMMITTEE Monday, February 3, 1997 Page -2- 6. NEW BUSINESS A. HEALTH PLAN MARKETING Assistant City Manager John Stinson gave a brief overview of the work done to date to market the City's Health plans by Health Care Consultant Herb Kaighan. The Request for Proposal to market the plans has been prepared. In addition, the time line, minimum qualifications for vendors and a list of vendors who will be provided the Request for Proposal have been developed. All of this material has been discussed and reviewed by the Joint City/Employee Insurance Committee who have unanimously endorsed the process. It is intended that the Request for Proposal will be sent directly to a large number of health care companies and providers and will request cost information based on current plans for cost and service comparison purposes. Additional plan options where potential changes, improvements or cost savings may result will also be solicited from these vendors. A potential vendor list is attached. Public comments were received from Mr. Jim Barks, an insurance broker representing FinHealth, who expressed concerns that insurance brokers were not included in the marketing process. He said the City should consider local brokers and could possibly save money by using a broker rather than a consultant. He stated that local brokers have a greater feel for the local health care market. Mr. Clay Koerner asked several questions and expressed concerns regarding the amount of the City Health Care Consultant contract. He also suggested that perhaps brokers could be used to represent individual insurance companies in the marketing process. The health care consultant's contract was the product of review and discussion by Council Committee and the City Council in several public meetings. The City has changed health care consultants several times over the past ten years. The current consultant was originally selected through a RFP which included proposals from local vendors. The current consultant was hired in 1992 and his contract has been renewed by the City Council three times as a result of satisfactory work performance and good working relationship with the Council, staff and employee groups. He is beginning the second year of a two year contract. The City'Council directed the marketing of the health plans for 1998 and contracted with Mr. Kaighan to perform this additional work. City Attorney Skousen pointed out that some work has been completed under the current contract, and it may be canceled by either party upon 30 days notice. The City would be responsible for paying him for any work completed to date in the event of a cancellation. It was discussed that if a AGENDA SUMMARY REPORT PERSONNEL COMMITTEE Monday, February 3, 1997 Page -3- broker were used, that the commission paid to the broker would be an additional annual cost included in the cost of the health insurance to the City. It was also discussed that any changes to the structure of the current health plans would be subject to meet and confer requirements under the City's current labor agreements. Councilmember Sullivan continued to express concerns that the marketing did not include 'the local insurance brokers' community. She still indicated that local brokers should be included in the marketing of the health plans and that the proposal to do the marketing should be put out to bid, even though the City has a consultant currently under contract. Councilmember DeMond requested that the brokers submit their recommendations in written form so staff could review and more fully understand their position and concerns. The brokers in attendance agreed to submit a proposal to staff by February 18. Staff will report back to the Personnel Committee at the next committee meeting which is scheduled for March 10. 7. ADJOURNMENT The meeting was adjourned at 5:35 p.m. Staff present: Assistant City Manager John W. Stinson; City Attorney Judy Skousen; and Human Resources Manager Carroll Hayden. Others present: Health Care Consultant Herb Kaighan; Employee Insurance Committee member Mike Lee; Retiree Margaret Ursin; Clayton Koerner, Alliance Brokers and Consultants; FinHealth Services, Owner, Jim Barks; and FinHealth Services Associate Jackie Henderson. cc: Honorable Mayor and City Council JWS:jp City. of Bakersfield Prospective Carrier List Aetna Health Plans Ameritas Insurance Corp. Blue Cross of California Blue Shield of California BPS Healthcare California Dental Health CareAmerica Health Plans CIGNA HealthCare CNA DDS Delta Dental Dental Benefit Providers of California DentiCare of California First American Dental Plan Foundation Health FHP General American Life Golden West Dental and Vision Great-West Guardian Life HBI Health Net Health Systems International Healthcare Foundations of the Central Valley HealthSource/Provident Intervalley HealthPlan Jefferson-Pilot Kaiser Permanente Key Health Lifeguard Maxicare MetLife MetraHealth MIDA Dental Plans Mutual of Omaha New England Life NYLCare Pacificare Prudential HealthCare Reliastar SafeGuard Health Plans United HealthCare of California United Dental Care W'estem Dental BAKERSFIELD CITY MANAGER'S OFFICE MEMORANDUM March 26, 1997 TO: Personnel Committee FROM: John W. Stinso~',~s~sistant City Manager SUBJECT: Health Plan Marketing Based upon the direction of the Personnel Committee, attached are the revised timeline and Marketing Strategy to correct materials previously provided to you by memo from Human Resources Manager, Carroll Hayden on 3anuary 29, 1997. These materials reflect the change in the timeline due to the delay in releasing the RFP and the decision to allow brokers to respond to the RFP, with the identification of any associated fees or charges. If you have any questions please contact me at 326-3751. Exhibit 1 TIMELINE FOR MARKET EVALUATION WEEK OF ACTIVITY RESPONSIBILITY 1/13 Re-draft of bid specs sent to City Aon 1/27 Insurance Committee initial review Insurance Committee/Aon of bid specs and marketin,g plan 1/27 Census data sent to vendors to determine Aon qualifications with respect to minimum network match 2/3 Insurance Committee final review of specs Insurance Committee/Aon 2/3 or 2/10 Final bid specs sent to Personnel Committee; City approval of bid specs; set up Review Committee to interview finalists 3/17 Bid specs released to vendors Aon 4/14 Proposal due to Aon Aon 5/12 Draft of proposal evaluation report sent Aon to City 5/19 Meeting to review draft Aon/City 5/26 Final report sent to City Aon 6/2 Meetings with Insurance Committee and Aon Personnel Committee to review report 6/9 Finalist interview Review Committee/Aon 6/16 Site visits, if necessary Review Committee/Aon 6/23 Meet with Insurance Committee and Review Committee/Aon Personnel Committee to make recommendation 7/14 or 7/21 Final report and recommendation sent to City Aon 8/4 All relevant material distributed to Council City 8/18 or 9/10 Council deliberation Council 9/24 Council approval Council 9/29 Meeting with City to develop implementation Aon strategy 10/6 Meet with Insurance Committee and Personnel Aon Committee to discuss and approve implementation plans 11/10 Begin communication campaign and enrollment City/Aon process 11 / 14 Complete enrollment City 12/1 and 12/8 Complete administrative tasks to implement City employee selections and payroll deduction changes 12/26 Effective date for activities Vendors l/1 Effective date for COBRA and retirees Vendors F~xhibit 3 MAR[~[~TING ~.TRATEGY The City of Bakersfield wants to identi~ the most advantageous and competitive insurance arrangements tbr providing employees, retirees and their dependents with medical and dental benefits: I. '[he City Council has fiduciary and ethical responsibilities to make sure that these benefits are properly and competitively provided. 2. This' marketing does not imply any dissatisfaction with the current vendors but represents a due diligence review of the financial management of these benefits. 3. Periodic marketing is solutary in that state-of-the-art benefit programs, products, poli~y provisions and administration will be surfaced. -4. Proposals will be solicited I¥om vendors~ or their representatives based on the precise specifications of the current plans. 5. Only those vendors that meet basic mia~irnum qualificati~ms will have their proposals considered. 6. These proposals should be based on no commissions or fees being paid by the vendor. However, if troy commissions or tees are included in any proposal these are to be specifically confirmed. 7. The City has contracted with Aon Consulting to'perform the task of preparing the Request for Proposal, soliciting and reviewing each proposal, preparing a report with recommendations with respect to semi-finalists, and coordinating file interviews and ou-site visits of finalists. 8. A REVIEW COMMITTEE made up ofslaffwith technical knowledge and up to two members of the Insurance Committee (based on availability) will review the consultant's report, conduct finalist interviews and site visits ii' necessary.