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HomeMy WebLinkAboutResolution - 4773 - Contract - Insurance Partners Southwest Inc - Group Health Plan - 03/09/1995Resolution No. 4773 March 9, 1995 Item #18 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Contract and all related documents by and between the City of Lubbock and Insurance Partners Southwest, Inc., to design a Request for Proposal to solicit responses for the group health plan and to assist in the evaluation of those responses for the City of Lubbock, which contract is attached hereto, which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this ATTEST: Betty M9 Johnson, City Secretary APPROVED AS TO CONTENT: 9th day of March 1995. - 726� Mary Andr s Managing Director Human Resources AS TO FORM: LUp...a.. .. " . Assistant City Attorney DGV:dp\ccdocs\IPS.Res February 27,1995 Resolution No. 4773 March 9, 1995 Item #18 STATE OF TEXAS SERVICES AGREEMENT: COUNTY OF LUBBOCK WHEREAS, the City of Lubbock, Texas, has heretofore solicited proposals for the performance of the following described services: Health and Welfare consulting services to the employee benefits program of the City of Lubbock. and; WHEREAS, the proposal submitted by INSURANCE PARTNERS SOUTHWEST INC., has been selected as the best proposal; and WHEREAS, the City of Lubbock and INSURANCE PARTNERS SOUTHWEST INC., desire to enter into an agreement with regard to the proposal to perform the services solicited by the City; NOW THEREFORE: WITNESSETH: This Agreement is made and entered into this 9th day of March, 1995 , by and between the City of Lubbock, "City", and INSURANCE PARTNERS SOUTHWEST INC., "Proposer". The parties to this Agreement hereby agree as follows: 1) The Proposer shall perform such duties as are provided for by the City's request, and by its Proposal submitted in response thereto in a good and timely manner. The request and the Proposal are hereby incorporated in this document by reference and are made a part hereof for all intents and purposes. 2) In the event of a conflict between the request and the Proposal, the request shall be controlling. 3) The Proposer hereby agrees to keep and maintain in force such insurance or bonds as are required by the request. 4) This Agreement shall be governed by the laws of the State of Texas as effective and in force at the date of this Agreement. EXECUTED this PROPOSER: INSURANCE PARTNERS SOUTHWEST INC.: BY: BY: ATTEST: Secretary dp:cityatt\A-IPS.doc February 27, 1995 9th day of March 1995 ATTEST: Betty M. Johnso , City Secretary APPROVED AS TO CONTENT: r Mary Andr s Managing Director of Personnel APPROVED AS TO FORM: t nald G. Vandiver A First Assistant City Attorney A PROPOSAL TO PROVIDE HEALTH AND WELFARE CONSULTING SERVICES TO THE EMPLOYEE BENEFITS PROGRAM OF THE CITY OF LUBBOCK, TEXAS A PROPOSAL TO PROVIDE HEALTH AND WELFARE CONSULTING SERVICES TO THE EMPLOYEE BENEFITS PROGRAM OF THE CITY OF LUBBOCK Contents I. Executive Summary Background of Firm II. Scope of Services 111. References IV. Fees V. Resumes A PROPOSAL TO PROVIDE HEALTH AND WELFARE CONSULTING SERVICES TO THE EMPLOYEE BENEFITS PROGRAM OF THE CITY OF LUBBOCK Insurance Partners Southwest is committed to continuing our consulting relationship with the City of Lubbock. In this overview, we would like to explain our understanding of what a consulting relationship can mean to you. Since we have provided actuarial and employee benefits consulting services for other public sector clients, we are aware of the challenges which you face. Our approach in explaining our consulting philosophy will be to explain how we can help you presently and how our approach can prepare your benefits program for future needs. The current capabilities of Insurance Partners Southwest's Corporate Benefits Consulting Division are well suited for a client such as the City of Lubbock. To enable us to properly serve your needs, Insurance Partners Southwest has assembled a multi- disciplinary team of consultants in order to bring together the diverse skills necessary to provide the consulting services requested. This team includes experienced health care, actuarial, computer and benefit communications professionals as described in the following sections of this proposal. Following is a list of reasons why Insurance Partners Southwest is uniquely qualified to provide the requested services to the employee benefits program of the City of Lubbock: Insurance Partners Southwest is independent. We will work on a fee for service basis, and we will not take commission in any form. Our firm has a strong regional presence. The consultants assigned to the City of Lubbock have the ability to communicate effectively in nontechnical terms. Working in an environment with actuaries and other consultants, we recognize the importance of presenting our ideas in a variety of different ways for people with diverse backgrounds. VrCV M%Cd10801.pr0 Our firm has recognized experience with cost containment provisions, preferred provider organizations (PPOs) and health maintenance organizations (HMOs). We have extensive experience assisting clients whose growth and changing needs require the use of alternative funding arrangements for the provision of their benefits. We have a strong presence with the insurers and other vendors who will be providing your services. The arrangements we will negotiate for you will be the most favorable possible. A quality record of prior performance and proven current capabilities are not enough to ensure quality benefits consulting. The City of Lubbock needs and deserves a firm with an emphasis towards the future. Insurance Partners Southwest understands this need and has made substantial commitments toward ensuring successful consulting in the future. The City of Lubbock should choose a consultant with a drive to be as forward -thinking as possible rather than just reacting. Our method of consulting will involve: - Looking at your future benefit needs, not just today's "quick fix". Offering solutions which recognize both the employees' desires and the budgetary realities which you will face. Ensuring that you are fully aware of the plan's likely cash-flow patterns and their impact on the program. Monitoring current practices and developing trends in health care cost containment and keeping you updated on areas in which you should be considering change. Monitoring legislative and regulatory developments which affect health and benefit plans, keeping you informed, providing advice and assistance, and complying with any new government requirements. Meeting with you to present and fully explain the implications of our reports. *GVM% 1080 1 .P.o The key to providing this proactive service is the quality of the professionals assigned to the project. The professionals at Insurance Partners Southwest will be uniquely qualified to provide consulting services to you for the following reasons: Strong internal and external training programs Extensive research and informational services for our consultants Frequent meetings and conferences attended by our consultants for the purpose of exchanging information and experiences Urc%rrm\ool 10801.pro Working from our meeting, we have identified the following services as necessary to achieving the stated objectives for your healthcare program. We have presented the steps in outline form here, but would be anxious to discuss with you any questions you have regarding the details of the services we would perform. In general, we feel that the engagement as we have outlined it, meets all of your requirements. e i OPTION I Baseline Claims History Analysis (as available) Plan Design Analysis/Design Review of Managed Care Options Utilization review PPO networks Alternative delivery vendors Identification of Vendors Pre-screen competitive bidders Pre -renewal calculations to estimate administrative and claims cost for 199495 Review of potential insurance companies Review of potential Third Party Administrators (TPAs) Review of reinsurance market Review of insured products market (Life, LTD) Preparation/Dissemination of RFP(s) Complete information for proposing vendors Mailing of RFPs and any followup materials Respond to Vendor Inquiries Analysis of Proposals Reporting a recommendation to you UrcWmlcol10801.pro Reinsurance Analysis Specific levels Aggregate coverage Fixed costs vs. risk Negotiations with Finalist(s) Assure greatest possible cost savings Development of contract specifications Review of Vendor -prepared Documents Implementation/Conversion Support Employee Communications Coordination of overall communications package Production -ready drafts to be provided for: Announcement of changes 2-3 page summary of benefits Initial Rate Development Consulting on funding level and employee rates Wc%rrm%co110801.pro rQ Richardson I.S.D. 400 S. Greenville Richardson, TX 75081 Ms. Betty Smith 214-301-3410 City of Hurst 1505 Precinct Line Road Hurst, TX 76054 Ms. Anita Thetford 817-788-7013 City of Allen One Butler Circle Allen, TX 75002 Mr. Michael Stanger 214-727-0100 Town of Highland Park Texas 4700 Drexel Drive Highland Park, TX 75205 Mr. Bill Pollock 214-521-4161 Under Contract Pedernales Electric Cooperative P.O. Box 467 Johnson City, TX 78636 Ms. Nickie Cox 512-868-7155 City of Lubbock P.O. Box 2000 Lubbock, TX 79457 Ms. Lou Moore 806-767-2317 Uro%rrM%00110801.pr0 Y Health and Welfare Benefits Consulting Y Health and Welfare Benefits Consulting (Renewal Negotiation) (Budgeting) Y Health and Welfare Benefits Consulting, Ongoing Support N Health and Welfare Benefits Consulting N Health and Welfare Benefits Consulting Y Managed Care Consulting IV. PROFESSIONAL FEES OPTION I Services Provided Phase 1 - Estimated Hourly Input 34 hours @ 150 Phase II - Estimated Hourly Input 40 hours @ $150 Phase 111 - Estimated Hourly Input 14 hours @ $150 Total Less Public Sector Discount(10%) Final Not -to -Exceed Cost Estimated Professional Fees for Phase $5,100 6,000 2,100 $13,200 1,320 $1_ We feel that the above fees are quite competitive. However, we are willing to negotiate with you concerning changes in the Scope of Service and the resulting changes in the project's fees. In addition to the professional fees quoted, our charges will include out-of-pocket expenses. These expenses include travel, phone, mail, delivery, copying, computer time, and word processing. We agree to limit these costs to $2,000 for charges other than the production of employee communication materials which either you will reproduce or we will bill you at cost. Our fees are due and payable in our office within 30 days of presentation of our invoice. Accepted by: "_J Date: _ . 1Jr0VM%C01 10801.pr0