Explanation
BACKGROUND: As a result of a Request For Proposal process in accordance with Section 329.14 of the Columbus City Codes, nine prescription drug insurance bid responses were reviewed by the City's Evaluation Committee, comprised of five 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 Insurance Company is recommended as the prescription drug benefits administrator. United Healthcare Insurance Company has provided excellent services for the City of Columbus and, a guaranteed three year administrative rate. The prescription drug benefits administrative rate of $.61 per employee per month is effective April 1, 2009 until January 31, 2010, renewable annually with a two year renewal option. United Healthcare Insurance Company 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 2007-2008 trust fund expenditures trended on the basis of an eighteen-month of actual City utilization in conjunction with industry trends, as well as input from actuarial services and from the insurance carrier.
Contract compliance number is 31-1142815
FISCAL IMPACT: To enter into contract with United HealthCare Insurance Company to establish the maximum obligation liability of $18,949,600.00 for the prescription drug plan administration services from April 1, 2009 through January 31, 2010. Funding is available in the 2009 budget for this contract.
Title
To authorize the Human Resources Director to enter into contract with United HealthCare Insurance...
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