CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of the Second Extension to Contract 14-007, Benefits Broker, to GCG Financial, Inc. for an amount not to exceed $231,320 and for a term of 32 months.
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DEPARTMENT: Human Resources
SUBMITTED BY: James Sheehan, HR Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
On April 15, 2014, the City Council approved the award of RFP 14-007, Benefits Broker, to GCG Financial (GCG) for a three-year contract period, with two, two-year options to extend the contract term. On April 18, 2017, the first two-year option was approved by City Council. The term of the first extension ends on April 30, 2019 with one, two-year extension remaining.
GCG assists the City in delivering the most cost-effective services in five core areas. These areas are: self-funded medical; prescription drugs; dental plans; wellness initiatives; and stop-loss insurance coverage. GCG also advises City staff on other benefits including life insurance, COBRA, FMLA and pre-tax flexible spending and health savings accounts. GCG further collaborates with the City on its voluntary benefit options like vision, disability, critical illness and auto and home insurance.
DISCUSSION:
GCG has performed well during the original term and the first extension period. GCG has lowered the City's Blue Cross Blue Shield fixed cost administrative fees and conducted numerous RFPs to lower costs and/or improve service for participants, including the introduction of a new dental health vendor (Delta Dental) and a Medicare supplement plan (Benistar) for retirees. Through Delta Dental's network, the City has been able to offer better coverage while reducing costs. Since the introduction of Benistar combined with charging retirees the full premium amount, the City has seen a 78% reduction in over 65 retirees in the plan.
GCG also assisted with introducing consistent contract language for all participants (union and non-union) and syncing benefits renewa...
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