Explanation
BACKGROUND:
Additional funding of the vision insurance program is necessary to insure continuation of the vision insurance program in accordance with the negotiated labor contracts. The Human Resources Department requests to contract with EyeMed Vision Care, LLC and to provide funding from February 1, 2022 through January 31, 2023 for this program. The program services approximately 24,000 active benefit enrolled employees and their dependents and COBRA participants.
In 2021, the Human Resources Employee Benefits Office, with the assistance and consultation of the benefits consulting firm, put out a Request for Proposals for vision services plan administration for city employees, via RFQ019153.
The RFP evaluation committee reviewed five vision providers and interviewed the top three finalists. After careful consideration and evaluation, EyeMed Vision Care, LLC was selected as being the highest qualified offeror for vision services for the city.
The effective date for the contract is February 1, 2022; the contract term is 3 years, with two (2) one (1) year renewals. This represents year one of the three year contract.
The total obligation of this contract in year one is $1,021,000. The breakdown of expense is $21,000 for administrative fees and $1,000,000 for claims.
Cost estimates for 2022 are based on 2020-21 benefit fund expenditures using a two year average of actual city utilization, expected changes due to union negotiations, as well as input from insurance carriers and from the City's employee benefits consultant.
Emergency action is requested to ensure the vision insurance program for city employees is able to commence as soon as contractually possible, thereby maintaining continuity of service.
FISCAL IMPACT: Funding is available in the 2022 Employee Benefits Fund for this contract. This ordinance is contingent on the passage of the 2022 insurance appropriation ordinance 0014-2022.
Title
To authorize the Human Resources Direc...
Click here for full text