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File #: 220138    Version:
Type: Resolution Status: Passed
File created: 6/1/2022 In control: FINANCE & PERSONNEL COMMITTEE
On agenda: Final action: 7/28/2022
Effective date:    
Title: Substitute resolution authorizing the Department of Employee Relations to execute a contract for the administration of the City’s health and prescription drug benefits.
Sponsors: THE CHAIR
Indexes: EMPLOYEE BENEFITS, HEALTH INSURANCE, INSURANCE BENEFITS
Attachments: 1. DER Letter, 2. Executive Summary, 3. Hearing Notice List
Number
220138
Version
SUBSTITUTE 1
Reference
211411

Sponsor
THE CHAIR

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

Analysis
This resolution authorizes the Department of Employee Relations (DER) to execute a contract for the City’s health insurance plan administrator and a pharmacy benefit manager (PBM) for prescription drug benefits with contract terms commencing January 1, 2023.

Body
Whereas, The current contracts with UnitedHealthcare, for the administration of health plan benefits and OptumRx, for administration of pharmacy benefits, expire on December 31, 2022; and

Whereas, Common Council Resolution File Number 211411 authorized the Department of Employee Relations to complete a request for proposal process for the administration of health insurance and pharmacy benefits; and

Whereas, The City's benefits consultant, Gallagher Benefits Services, led a request for proposal process which included evaluation of proposal responses by a review and selection committee comprised of employees from the Department of Employee Relations, the budget office and the Employes’ Retirement System; and

Whereas, The review committee is recommending UnitedHealthcare for health plan administrative services based on their deep network discounts, broad network access as well as excellent account and member service; and

Whereas, The review committee is recommending OptumRx carve-in pharmacy benefits through UnitedHealthcare based on competitive financial terms and administrative fees as well as full integration with the health plan; 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 for health plan administration and pharmacy benefit management services commencing January 1, 2023 with the option of ...

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