Title
Consider recommendation from the Finance/Administrative Committee to approve the purchase of employee medical insurance from Humana of Texas through CBG Benefits Group, in the approximate amount of $634,500, for the period October 1, 2019 through September 30, 2020.
Body
RECOMMENDED MOTION:
Move the board adopt Resolution and Order No. 08-19-944 of the Edwards Aquifer Authority Board of Directors approving the purchase of employee medical insurance for October 1, 2019 through September 30, 2020 from Humana of Texas, through CBG Benefits Group, in the approximate amount of $634,500, with an option to renew for four additional years.
SUMMARY:
The purpose of this agenda item is for the board to consider a Finance/Administrative Committee recommendation to purchase employee medical insurance from Humana of Texas for the 2020 plan year that commences on October 1, 2019. On April 22, the EAA issued Requests for Proposals (RFP) for group medical, life, dental and long-term disability insurance coverage.
On Monday, May 14, 2018, EAA staff directly provided the RFP packet to five (5) potential vendors. Of those vendors, three (3) were M/WBEs. Also, the Texas Purchasing Group-Electronic Listing reported that fifty-four vendors were notified of the proposal packet, and of the fifteen packets that were downloaded from this site, one (1) is an M/WBE.
On Wednesday, May 22, 2019, the EAA received three (3) proposals from Ochs, CBG and Guardian, of which one (1) is an M/WBE.
The EAA received only one response for group medical insurance to this RFP through CBG Benefits for Humana of Texas. Subsequent to the deadline for RFP responses, the EAA received a renewal quote from Blue Cross Blue Shield of Texas (BCBS), the EAA’s current medical insurance provider, for plan year 2020 rates that included an overall increase of 15% over current year rates. The rates provided by Humana were approximately 15% lower than 2019 rates and 26% lower than the BCBS renewal for the 20...
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