Explanation
BACKGROUND: As a result of a Request For Proposal process in accordance with Section 329.14 of the Columbus City Codes, eight prescription drug insurance bid responses were reviewed by the City's Evaluation Committee, comprised of seven members.
Each proposal was evaluated on the following criteria as required by section 329.14: competency to perform, quality and feasibility of the offerors technical proposal, ability to perform the required service competently, past performance, and the cost structure of the proposal. United Healthcare recommended as the prescription drug insurance benefits administrator. United Healthcare has provided excellent services for the City of Columbus and will not charge an administrative rate for three years. United Healthcare offers the ability to duplicate negotiated benefits.
To maintain insurance programs in accordance with the negotiated labor contracts, additional funding of the prescription drug insurance program is necessary to insure continuation of the prescription drug insurance program. Cost estimates were based on 2009-10 trust fund expenditures using a three 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. The contract is for a three-year period, subject to annual appropriation; this ordinance represents the third year.
Contract compliance number is 31-1142815
FISCAL IMPACT: To enter into contract with United Healthcare to establish the maximum obligation liability of $28,556,948 for the prescription drug plan administration services from February 1, 2012 through January 31, 2013. Funding is available after passage of the 2012 budget, Ordinance No.2250-2011 for this contract.
Title
To authorize the Human Resources Director to enter into contract with United Healthcare to provide all eligible employees prescription drug insurance coverage from February 1, 2012 through Ja...
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