HomeMy WebLinkAboutR-84-0403J-84-222
2
RESOLUTION NO. 84""' 403.,
A RESOLUTION AUTHORIZING THE CITY MANAGER
TO DISTRIBUTE AND PUBLISH A REQUEST FOR
PROPOSAL (RFP) FOR QUALIFIED FIRMS TO PRO-
VIDE ADMINISTRATIVE CLAIMS SERVICE TO THE
CITY'S SELF -FUNDED HEALTH BENEFITS PLAN
AND INSURANCE FOR THE CITY'S GROUP TERM
LIFE INSURANCE PLAN.
WHEREAS, the City of Miami maintains a self -funded
health benefits plan and a group term life insurance plan; and
WHEREAS, competitive proposals for services required
by the benefits plans have not been sought since 1978; and
WHEREAS, provisions of recently concluded bargaining
agreements with certain City bargaining units will substantially
alter the size and composition of the employee group participating
in the benefit plans; and
WHEREAS, the City's Self -Insurance and Insurance
Committee, after review of the services provided by the current
Administrator and Insurer and the impact of the change in group
size and composition feels that it is both sound and prudent
financial practice to solicit requests for proposals from quali-
fied service firms and insurers at this time in order to insure
that the needs of the City are best met and at the lowest possible
cost;
NOW, THEREFORE, BE IT RESOLVED BY THE . COMMISSION
OF THE CITY OF MIAMI, FLORIDA:
1. The City Manager is hereby authorized to distribute
and publish a Request for Proposal (RFP) from qualified adminis-
trative service firms and insurers to provide administrative services
for the City's self -funded Group Health Benefits Plan and the
City's Group Term Life Insurance Plan.
CITY COMMISSION
MEETING OF
RESOMIJ , 8 - 03
REf1�RP�ti
PASSED AND ADOPTED this 5th day of April , 1984.
Maurice A. Ferre
ATTEST:
.:. GNG FE-, C I
PREPARED AND APPROVED BY:
ROBERT. CLARK
CITY ATTORNEY
APPROVED AS TO FORM AND CORRECTNESS:
P
S A
AITYTTORNEY
Us-
84-403
a
TO. Howard V. Gary
City Manager
CITY OF MIAM1. FLORIDA y r
t f
INTER -OFFICE MEMORANDUM
DATE: FILE,
SUBJECT. City Commission Agenda Item
FROM. Carlos E . Garcia - REFERENCES:
Director of Finance
1 --' ENCLOSURES:
IT IS RECOMMENDED THAT THE ATTACHED
RESOLUTION AUTHORIZING THE CITY MANAGER
TO DISTRIBUTE AND PUBLISH REQUEST FOR
PROPOSALS TO QUALIFIED FIRMS TO PROVIDE
ADMINISTRATIVE CLAIMS SERVICE TO THE SELF -
FUNDED HEALTH BENEFITS PLAN AND FOR THE
GROUP TERM LIFE INSURANCE PLAN BE APPROVED
BY THE CITY COMMISSION.
The City of Miami established a self -funded health benefits plan
in 1978. The City has utilized the services of The Equitable Life
Assurance Society of the United States as Claims Administrator for
that plan since its inception. The Equitable also has been the
insurer of the City's group term life insurance plan since. that time.
No competitive selection process has tah.en place for these services
since 1978.
The cost for proving both services and insurance for FY 82-83 was
$1,011,232 ($437,700 for administrative claim service; $573,532 for
life insurance premium).
The recently concluded bargaining agreements with both the Fraternal
Order of Police and the International Association of Fire Fighters
will substantially alter both the size and the composition of the group
participating in the City benefits plans.
The Self -Insurance and Insurance Committee, at their February 10, 1984
meeting, reviewed both the services provided by The Equitable and the
impact of the reduction in group size. The Committee also recognized
that there are several firms which provide services similar to those
provided by The Equitable, and agreed that it would be sound and pru-
dent financial practice to seek competitive proposals from such firms
to assure that the needs of the City were best met in terms of service
capability, quality, and price. The Committee agreed to recommend to
the Commission that the City Manager be authorized to distribute and
publish a request for proposals from qualified firms to provide both
administrative services to the self -funded health benefits plan and
life insurance for the group term life insurance plan.
cc: Law Department
R. Rosencrantz
D. Dunlap