O2019 – 0812 ORDINANCE approving and authorizing first amendments to contracts between the City and (1) AETNA LIFE INSURANCE COMPANY, (2) KS PLAN ADMINISTRATORS LLC, dba KELSEYCARE ADVANTAGE, (3) SELECTCARE of TEXAS, INC, (4) HEALTHSPRING LIFE & HEALTH INSURANCE COMPANY, INC and (5) UNITEDHEALTHCARE INSURANCE COMPANY, respectively, for Medicare Health Plans for eligible City Retirees and their eligible dependents

S76-T25089.A1 -  Approve an Ordinance authorizing first amendments to contracts between the City of Houston and (1) Aetna Life Insurance Company (#4600012945), (2) KS Plan Administrators LLC, dba KelseyCare Advantage, (#4600012947, (3) SelectCare of Texas, Inc. (#4600012947), (4) HealthSpring Life & Health Insurance Company, Inc. (#4600012948) and (5) UnitedHealthcare Insurance Company (#4600012962), respectively (Approved by Ordinance No. 2014-972, passed on October 29, 2014) for Medicare Health Plans for eligible City retirees and their eligible dependents, extending the contract term from January 1, 2020 to December 31, 2020 for the Human Resources Department.

Specific Explanation:

The Director of the Human Resources Department and the Chief Procurement Officer recommend that City Council approve an ordinance authorizing first amendments to extend the terms from January 1, 2020 to December 31, 2020 for contracts between the City of Houston and (1) Aetna Life Insurance Company (2) KS Plan Administrators LLC, dba KelseyCare Advantage, (3) SelectCare of Texas, Inc., (4) HealthSpring Life & Health Insurance Company, Inc. and (5) UnitedHealthcare Insurance Company for Medicare Health Plans for eligible City retirees and their eligible dependents for the Human Resources Department.

The original contract was awarded on October 29, 2014 per Ordinance 2014-972, for a three-year term with two one-year options in the amount of  $184,810,976.00.   Expenditures as of October 7, 2019 are  $112,483,048.00.  No additional spending authority is required.  The first amendments will allow the City sufficient time to evaluate proposals for new contracts. 

The Scope of Work requires the contractors to provide Medicare Health Plans, Pharmacy benefits, and  all related services to eligible City retirees and their eligible dependents who are covered by Medicare.  Services  include, but are not limited to, network management, claims processing, plan design and administration, customer service, and Medicare and City reporting. 

M/WBE Participation:

The contracts were awarded with a 5% M/WBE participation goal.  Current participation for each contractor is as follows: 

The Office of Business Opportunity is currently working with Aetna Life Insurance Company and UnitedHealthcare Insurance Company to develop a plan for each of these contractors to ensure they meet or exceed the 5% goal.  

Fiscal Note:
No additional spending authority is required. Therefore, no Fiscal Note is required as stated in the Financial Policies