FIN 2019-06-24 Item 2C - Contract - Health Care Broker with USI Insurance Services Northwest

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W►'w e�z City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Committee FROM: Juan Padilla, Human Resources Director BY: Erika Eddins, Human Resources Analyst CC: Mayor Ekberg DATE: June 19, 2019 SUBJECT: Healthcare Broker Contract ISSUE The Council is being asked to allow the mayor to execute a contract with USI insurance for healthcare broker services in an annual amount of $90,000, not to exceed $7,500.00 per month, for a 36 month period beginning mid -July 2019. BACKGROUND The City of Tukwila has had the same insurance broker for our self -funded health insurance program for many years. The broker's role is to help the City to manage the costs of both the retiree and active employee health insurance plans, as well as negotiate prices on life, long- term disability, and stop -loss insurance. With new leadership in the Human Resources department and following best practice to periodically go to the market to ensure competitive service and pricing, the City submitted a request for proposals (RFP) for healthcare broker services. DISCUSSION The City received five responses to the RFP, which were reviewed through a vetting process involving HR and Finance staff, Administration representatives and members of our labor partners. There was consensus from the group that USI was the clear winner based upon their industry experience and depth of service resources they offer. Sufficient funding for this contract exists within the 502 medical plan fund. The existing contract with the City's current broker will be terminated in late July to ensure a consistent transition between brokers. RECOMMENDATION The Finance Committee is being asked to forward this item to the Committee of the Whole, July 8, 2019, and then to Regular Meeting on July 15, 2019, for approval. ATTACHMENT Draft contract with Exhibits A and B 67