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File #: 190021    Version:
Type: Resolution Status: Passed
File created: 4/16/2019 In control: COMMON COUNCIL
On agenda: Final action: 7/30/2019
Effective date:    
Title: Substitute resolution authorizing the Department of Employee Relations to execute a contract for administration of the City’s health and prescription drug benefits
Sponsors: THE CHAIR
Indexes: EMPLOYEE BENEFITS, HEALTH INSURANCE
Attachments: 1. Letter on Health Plan and PBM Contract, 2. Health Plan and PBM Report, 3. Hearing Notice List

Number

190021

Version

SUBSTITUTE 1

Reference

181715

 

Sponsor

THE CHAIR

 

Title

Substitute resolution authorizing the Department of Employee Relations to execute a contract for administration of the City’s health and prescription drug benefits

 

Analysis

This resolution authorizes the Department of Employee Relations to execute a three year contract for health plan and prescription drug benefit (PBM) services commencing January 1, 2020.

 

Body

Whereas, The City’s current contract with UnitedHealthcare (UHC) and OptumRx expires on December 31, 2019; and

 

Whereas, Common Council File 181715 authorized the Department of Employee Relations to initiate a review and selection process for health plan and PBM services beginning January 1, 2020; and

 

Whereas, The Department of Employee Relations, on behalf of the City of Milwaukee,  and its Benefits Consultant, Willis Towers Watson, worked in collaboration with Milwaukee County and the Milwaukee County Transit System (MCTS) to execute the current review process; and

 

Whereas, A review and evaluation committee comprised of multiple representatives from the City of Milwaukee, Milwaukee County and MCTS along with Willis Towers Watson reviewed and evaluated responses and financial terms; and

 

Whereas, The review committee is recommending UnitedHealthcare for health plan administrative services based on their deep network discounts and broad network access; and

 

Whereas, The review committee is recommending OptumRx for PBM services based on their competitive financial terms, flat administration fees and commitment to improving integration efforts with UHC; now, therefore be it

 

Resolved, By the Common Council of the City of Milwaukee that the Department of Employee Relations is authorized to execute a three year contract with UnitedHealthcare and OptumRx for health plan administration and pharmacy benefit management services commencing January 1, 2020.

 

Requestor

 

Drafter

Renee Joos

07/19/19