Title
Consider recommendation from EAA staff to approve the purchase of employee medical insurance from Blue Cross Blue Shield of Texas through Marsh McLennan Agency, in the approximate amount of $1,203,948, for the period October 1, 2024, through September 30, 2025.
Body
STAFF RECOMMENDED MOTION:
Move the board adopt Resolution and Order No. 08-24-101 of the Edwards Aquifer Authority Board of Directors approving the purchase of employee medical insurance from Blue Cross Blue Shield of Texas, through Marsh McLennan Agency, in the approximate amount of $1,203,948, for October 1, 2024 through September 30, 2025, and authorizing the General Manager to execute the necessary documents.
SUMMARY:
The purpose of this agenda item is for the board to consider an EAA staff recommendation to purchase employee medical insurance from Blue Cross Blue Shield of Texas (BCBS) for the 2025 plan year that commences on October 1, 2024. In 2021, the board approved the purchase of employee medical insurance from BCBS for the 2022 plan year with an option to renew for four additional years. This item represents the third renewal option with BCBS for employee medical insurance.
The renewal rate received by BCBS for medical insurance coverage for the 2025 plan year reflects a 30% increase over the current 2024 rates. The provisions of the federal Affordable Care Act require that employers maintain an open enrollment period for 30 consecutive days prior to plan year commencing. The EAA’s open enrollment for the 2025 plan year will begin August 19, 2024, and conclude September 13, 2024. The final weeks of September allow EAA staff to ensure all enrollment and payroll databases are accurate for the October 1 plan year commencement.
The rates for the new plan year are included in the attached resolution and order, which has been approved by legal counsel.
M/WBE PARTICIPATION:
Marsh McLennan Agency will serve as the EAA agent representing BCBS. BCBS is not an M/WBE vendor.
STRATEGIC PLAN REFERENCE:
This agenda item supports the general EAA mission.
FISCAL IMPACT:
Funding in the amount of $1,203,948 is available in the 2024 operating budget and will be included in the General Manager’s 2025 proposed operating budget.