FIN 2017-12-05 Item 2A - Agreement - 2018 Health Care Broker Services with RL Evans

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City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Committee FROM: Stephanie Brown, Human Resources Director BY: Erika Eddins, Human Resources Analyst CC: Mayor Ekberg DATE: November 29, 2017 SUBJECT: Healthcare Broker Services Contract for R.L. Evans, Broker of Record ISSUE Execute a contract with R.L. Evans in the amount of $51,250 for healthcare brokerage services regarding the active employee and LEOFF 1 retiree health plans in 2018. BACKGROUND The City of Tukwila's self-funded health insurance program was started in 1990. R.L. Evans has been our broker since that time, helping the City to manage the costs of both the retiree and active employee health insurance plans, as well as, negotiating competitive prices on Life, Long-term Disability, and Stop -Loss Insurance. DISCUSSION City staff have been pleased with the expertise and the high level of customer service that the R.L. Evans company provides given their depth of experience in self-funded plan management. We have found through research that there are not many brokerage firms that have the extensive experience in self-funded plans as the R.L. Evans Company. We are confident that their ongoing service will assist the City in continuing to operate a cost effective and comprehensive benefits plan. FINANCIAL IMPACT A one-year guarantee for 2018 provides for a 2.5% increase over 2017 for an overall fee of $51,250. It is expected that any fees and commissions collected in 2017 will offset against the fees that occur in 2018. The contract expenses will be within 2018 budgeted amounts. RECOMMENDATION The Committee is being asked to approve the contract with R.L. Evans for Healthcare Broker Services and forward this item to the December 11, 2017 Special Meeting Consent Agenda. ATTACHMENTS R.L. Evans Contract with Exhibits A and B: Scope of Services and Method of Payment 1