Number
070308
Version
SUBSTITUTE 1
Reference
Sponsor
THE CHAIR
Title
Substitute resolution authorizing the Department of Employee Relations to enter into a new agreement with United Healthcare to provide health maintenance services to City employees and retirees in 2008.
Body
Whereas, The City of Milwaukee has completed a request for proposal process to identify a vendor for 2008 health maintenance services; and
Whereas, There were four responses to the proposal, two of the proposals were non-responsive because they did not offer an insured HMO plan; and
Whereas, Humana, the current HMO, has proposed a 18.85% increase; and
Whereas, United Healthcare has proposed a 6.63% increase; and
Whereas, The difference would be $10.2M in additional costs; and
Whereas, The United Healthcare proposal in terms of cost and network for 2008 provides greater value for the City; and
Whereas, United Healthcare has agreed in their response to carve out the drugs, and there is additional value to the City in having Navitus provide prescription benefit services as a self-insured benefit, now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the Department of Employee Relations is authorized to enter into an agreement with United Healthcare to provide health maintenance services in 2008 and to expand the contract with Navitus Health Solutions to provide prescription benefit services to HMO members in 2008, and that the agreements are subject to the approval of the City Attorney’s office.
Drafter
DER
MB
5/3/07