Department
Finance
Requested Action (Identify appropriate Action or Motion, purpose, cost, timeframe, etc.)
title
Request approval to renew existing contracts - Finance Department, 19-RFP060519C-MH, Employee Healthcare Benefit Plan - Medicare Advantage in the amount of $229.19 for each Basic Medicare Advantage eligible enrollee (2) eligible enrollees will have the option to buy-up and pay the cost difference to enroll in the Enhanced Medicare Advantage Plan at the rate $267.77 per enrollee per month with Aetna Life Insurance Company (Atlanta, GA) to provide Medical and Pharmacy benefits as a fully insured option for Medicare eligible retired employees/beneficiaries and dependents. This action exercises the second of four renewal options. Two renewal options remain. Effective January 1, 2022 through December 31, 2022. Request approval to renew existing contracts - Finance Department, 19-RFP060519C-MH, Employee Healthcare Benefit Plan - Dental on a fully-insured basis with Aetna Life Insurance Company (Atlanta, GA) to administer: [1] Dental PPO (DPPO) Plan on a self-insured basis and [2] Dental HMO (DMO) Plan to eligible employees, retirees, beneficiaries and their covered dependents. This action exercises the second of four renewal options. Two renewal options remain. Effective date: January 1, 2022 through December 31, 2022. (APPROVED)
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Requirement for Board Action (Cite specific Board policy, statute or code requirement)
In accordance with Purchasing Code Section 102-394(6), the Purchasing Department shall present all renewal requests to the Board of Commissioners at least 90 days prior to the contract renewal date or 60 days if the contract term is six (6) months or less.
Strategic Priority Area related to this item (If yes, note strategic priority area below)
Open and Responsible Government
Commission Districts Affected
All Districts ☒
District 1 ☐
District 2 ☐
District 3 ☐
District 4 ☐
District 5 ☐
District 6 ☐
Is this a purchasing item?
Yes
Summary & Background (First sentence includes Agency recommendation. Provide an executive summary of the action that gives an overview of the relevant details for the item.)
Scope of Work: Aetna administers the County’s Basic and Enhanced fully-insured Medicare Advantage Plans. This contract provides all-inclusive medical, pharmacy, wellness and disease management and claims administration. Eligible retirees have the option to buy-up and pay the cost difference to enroll in the Enhanced Medicare Advantage Plan which pays 100% for medical benefits at a lower cost, with $0 cost sharing.
Community Impact: None
Department Recommendation: The Finance Department requests approval to renew existing contract with Aetna to administer the Basic and Enhance Medicare Advantage Plans on a fully insured basis to Medicare eligible retirees, beneficiaries and dependents. Aetna originally proposed an increase of 10.2% and 8.7% respectively to the Basic and Enhanced Medicare Advantage Plans. The Finance Department staff, along with our benefit consultants from Segal, successfully negotiated lower renewal premium increase of 5.3% to the Basic and Enhanced Medicare Advantage Plans for the 2022 plan year.
Project Implications: None
Community Issues/Concerns: None
Department Issues/Concerns: None
Contract Modification
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Current Contract History |
BOC Item |
Date |
Dollar Amount |
|
Original Award Amount |
19-0619 |
8/7/19 |
$217.54 per enrollee per month basic plan; $254.19 per enrollee per month enhanced plan. |
|
1st Renewal |
20-0828 |
11/18/2020 |
$217.54 per enrollee per month basic plan; $254.19 per enrollee per month enhanced plan. |
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2nd Renewal |
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9/1/2021 |
$229.19 per enrollee per month basic plan; $267.77 per enrollee per month enhanced plan. |
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Total Revised Amount |
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$.00 |
Contract & Compliance Information (Provide Contractor and Subcontractor details.)
Contract Value: $267.77 for each basic Medicare Advantage enrollee
Prime Vendor: Aetna Life Insurance Company
Prime Status: Non-Minority
Location: Alpharetta, GA
County: Fulton County
Prime Value: $267.77 for each basic Medicare Advantage Enrollee
Subcontractor: SCR Consulting
Subcontractor Status: African American Male Business Enterprise- Certified
Location: Atlanta, GA
County: Fulton County
Contract Value: TBD (Enrollment Services & Education)
Subcontractor: PMI Solutions, LLC
Subcontractor Status: African American Male Business Enterprise- Certified
Location: Atlanta, GA
County: Fulton County
Contract Value: TBD (Enrollment Services)
Total Contract Value: $267.77 for each basic Medicare Advantage Enrollee
Total M/FBE Value: $TBD (Enrollment & Education Services)
Exhibits Attached (Provide copies of originals, number exhibits consecutively, and label all exhibits in the upper right corner.)
Exhibit 1: Contract Renewal Agreement
Exhibit 2: Contract Renewal Evaluation Form
Exhibit 3: Contractor Performance Report
Contact Information (Type Name, Title, Agency and Phone)
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Melissa Barnett, Benefits Manager (404) 612-4243 or Ray Turner, Deputy Finance Director (404) 612-7737.
Contract Attached
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Yes
Previous Contracts
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Yes
Total Contract Value
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Original Approved Amount: |
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Previous Adjustments: |
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This Request: |
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TOTAL: |
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Grant Information Summary
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Amount Requested: |
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☐ |
Cash |
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Match Required: |
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☐ |
In-Kind |
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Start Date: |
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Approval to Award |
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End Date: |
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☐ |
Apply & Accept |
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Match Account $: |
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Fiscal Impact / Funding Source:
426-999-P003-1560: Group Insurance Stabilization, General Fund, Administrative:
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Key Contract Terms |
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Start Date: 1/1/2022 |
End Date: 12/31/2022 |
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Cost Adjustment: |
Renewal/Extension Terms: Second of four |
Overall Contractor Performance Rating:
Would you select/recommend this vendor again?
Yes
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Report Period Start: |
Report Period End: |
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1/1/2021 |
6/30/2021 |