Presenter/Contact
Presenter
Jennifer Gates, Buyer
Contact Info
(830) 221-4383 - JGates@nbtexas.org
Subject Header
SUBJECT:
Title
Approval of an annual contract with Life Account, LLC d/b/a Compass Professional Health Services for healthcare consulting services for City employees.
Body
BACKGROUND / RATIONALE:
The City of New Braunfels currently offers medical, dental, and vision insurance to its employees. At the request of the City’s Human Resources department, the City’s benefits consultant, Holmes Murphy & Associates, Inc., gathered quotes from 5 companies to provide healthcare consulting services for the City’s employees.
After review by the City’s Human Resources department and the City’s consultant, the highest-ranked company is Life Account, LLC d/b/a Compass Professional Health Services (hereafter “Compass”) based upon a broad range of services offered and competitive pricing.
City employees may request services from Compass that include, but are not limited to, assistance in understanding their selected health benefits, securing and coordinating cost-effective care, reviewing medical bills, and scheduling medical appointments. The services offered by Compass assist employees in making informed decisions and become better consumers of health care as well as ease the standard administrative burden associated with healthcare.
The City is seeking to enter into a three-year contract with Compass for a base contract term of October 1, 2017 through September 30, 2020. Additionally, the contract will allow for automatic 1-year renewals with mutual consent between the City and the contractor.
The cost of the services is $5.00, per Beneficiary per month. Therefore, the total anticipated cost for FY 2017-18, is approximately $32,100. A conservative projection for the return on investment is 200 percent in the first year. Therefore, the new service is projected to save at least $65,000 in claim expenditures throughout FY 2017-18.
ADDRESSES A NEED/ISSUE IN A CITY PLAN OR COUNCIL PRIORITY:
|
X |
Yes |
Strategic Priorities: |
9. Maintain fiscal stability of City operations |
FISCAL IMPACT:
Funding for the contract described above has been incorporated into the adopted FY 2017-18 Self Insurance Fund budget. Therefore, sufficient funds are available for the referenced annual contract.
Recommendation
COMMITTEE RECOMMENDATION:
N/A
STAFF RECOMMENDATION:
Staff recommends the approval of an annual contract with Life Account, LLC d/b/a Compass Professional Health Services for healthcare consulting services for City employees.