HomeMy WebLinkAbout~Master - Awarding 1-Year Renewal Contract to Provide Health Benefits Consulting Services and Actuarial Valuation Services RESOLUTION NO. 22-165
RESOLUTION AWARDING 1-YEAR RENEWAL CONTRACT TO PROVIDE
HEALTH BENEFITS CONSULTING SERVICES AND
ACTUARIAL VALUATION SERVICES
FOR THE CITY OF AMES
WHEREAS,The City provides health benefits to full-time and regular part-time employees,
including health insurance,dental insurance,prescription drug coverage,flex spending,an employee
wellness plan, and optional vision coverage; and,
WHEREAS, the health benefit and prescription drug plans are administered by
Wellmark/Blue Cross of Iowa;the dental plan and vision is administered by Delta Dental of Iowa;
and the flex spending plan is administered by TASC; and,
WHEREAS, the City has three group medical plans, including Wellmark's Classic Blue
(indemnity plan that is closed to new enrollments),Alliance Select(PPO plan),and Blue Advantage
(HMO plan); and,
WHEREAS, these plans are required to have certain protections, such as a provision of
preventative health services without any cost sharing and the elimination of lifetime limits on
benefits under the Patient Protection and Affordable Care Act(PPACA); and,
WHEREAS, City staff has managed health benefits internally for several years; however,
with the rollout of the PPACA,increased and changing compliance requirements,and the complexity
of analyzing and valuing proposed Plan changes, staff has determined that the health plans can be
better managed with the assistance of contracted, qualified professionals; and,
WHEREAS, those same types of professionals have already been providing these services
and actuarial valuation services for several years to comply with reporting requirements for our self-
funded health plan; and,
WHEREAS,on January 31,2017,the City issued a Request for Proposals(RFPs)for health
benefits consulting and actuarial valuation services for our self-funded health plan; and after an
extensive evaluation process,the City awarded a three-year contract to Gallagher Benefit Services,
Inc., for health benefits consulting and actuarial valuation services; and,
WHEREAS,the Contract included options to renew for two additional one-year periods and
the current Contract ends on June 30, 2022; and,
WHEREAS, Gallagher Benefit Services, Inc., is willing to provide services to the City for
an additional one year(FY 2022/23) at the same rate charged in FY 2021/22 ($40,000); and,
WHEREAS,the City has had very good results with managing the health insurance programs
by partnering with Gallagher; and,
WHEREAS, the City and Gallagher Benefit Services Inc., are in the midst of an evaluation
on certain benefit services and conducting an RFP process, which, at this time, could result in a
disruption to the quality of service.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that a one-year contract renewal with Arthur J. Gallagher&Company of Centennial,Colorado, for
health benefits consulting and actuarial valuation services beginning July 1,2022,in an amount not
to exceed $40,000 is hereby approved.
ADOPTED THIS 12`h day of April, 2022.
Diane R. Voss, City Clerk John A. Hai la, Mayor
Introduced by: Betcher
Seconded by: Junck
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Rollins
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 12'day of April, 2022.