CITY OF ORLANDO
COUNCIL AGENDA ITEM

Items Types:
Business and Financial Services 		For Meeting of:
May 4, 2015
District: ALL From:
Contract ID: Document Number:
Exhibits: Yes On File (City Clerk) : Yes Draft Only: No
Grant Received by City?: No
Subject:
Amendment to Contract with United HealthCare for Health Plan Administrative Services, RFP07-0593
Summary:

The contract with United HealthCare for Health Plan Administrative Services expires on December 31, 2015.  The Human Resources Division and Procurement and Contracts Division is requesting approval to extend the current contract for one (1) additional year. The following terms have been negotiated with United HealthCare for plan year 2016:

  • Administrative fees of $36.40 per employee per month (PEPM) inclusive of $1.00 PEPM for third party stop loss administration.
  • $100,000.00 contribution toward the City’s Wellness Program initiatives.*
  • $25,000.00 communications budget to be used towards wellness programs and promotion.*
  • Continuation of the onsite nurse liaison.

 2016 United Healthcare Renewal – Estimated Savings 

2015

2016

Savings

ASO Fee, Per Subscriber Per Month

$38.43

$36.40

 

Subscribers

4,620

4,620

 

Estimated Annual Cost

$2,130,559

$2,018,016

-$112,543

 

 

2015

2016

Additional Funds

*Funds toward Wellness and Health Promotion

$85,000

$125,000

$40,000

*The 2016 United Healthcare Renewal included an increase in the amount United Healthcare will provide for wellness and health promotion.  Note that the expenses paid with these funds must be approved by United Healthcare.

All other terms of the current United HealthCare contract for Health Plan Administrative Services (RFP07-0593) will remain unchanged from Plan Year 2015.
Fiscal & Efficiency Data:
Recommended Action:
Approval and authorization for the Chief Procurement Officer to negotiate and execute a contract amendment with United HealthCare, as indicated above.  The final negotiated contract amendment will be subject to review and approval by the City Attorney’s Office.
Agenda Item attachment(s) on file in the City Clerks Office.
Note: All agenda items must be in the City Clerk's office by Noon Friday, six(6) business days prior to the regular Monday City Council meeting.
Contact: David Billingsley
Approved By:

Department Date and Time
Budget Outside Routing Approval 4/23/2015 12:10 PM
City Clerk 4/23/2015 12:13 PM
ATTACHMENTS:
Name: Description: Type:
2016_UHC_Renewal_Fiscal_Impact_Statement.pdf Fiscal Impact Statement Fiscal Impact Statement
City_of_Orlando_2016_Renewal_Confirmation_Letter.pdf United HealthCare Renewal Letter Backup Material
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