Title
Consider approval of renewing with United Medical Resources (UMR), for third party administrative services to administer the City's medical and prescription drug plans, in the amount of $190,339.00, as budgeted in the Self-funded Health Fund; and authorizing the City Manager to sign any necessary documents.
Summary
In strong support of the City Council's Vision 2040 goal to maintain a quality workforce to serve the community, the City provides employees with medical and prescription drug insurance coverage. The medical and prescription drug plans are partially self-funded, so all medical claims are processed and adjudicated on behalf of the City's plan by a Third-Party Administrator (TPA). The City has selected United Medical Resources (UMR) as the TPA and is eligible for renewal for the 2024-2025 benefit plan year.
UMR has provided TPA services for the City of Coppell for the past seventeen years, and the City has enjoyed strong service, pricing, and high quality care through access to UMR's Preferred Provider Organization (PPO) network. UMR administrative services include medical, health reimbursement arrangement (HRA), claims processing, utilization review, ID card generation, internet-based web portal for employees to access claims utilization, and run-out claims administration.
Fiscal Impact:
The City's benefits consultant, HUB International, Inc. (HUB) negotiated a strong renewal with UMR on the City's behalf. The administration fee renewal from UMR was originally a 7% increase. It was negotiated to a 2% increase, which is $3,758 above the current cost. Included in the 2024-2025 renewal with UMR is a $15,000 premium credit which will be applied to the October 2024 invoice.
New Performance Guarantees have been put in place on the plan regarding UMR's financial accuracy and claims processing turnaround time. There are performance standards that are expected to be met, and if they are not there is a penalty incurred.
HUB also introduced UMR's Cos...
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