Subject:
Title
Ratification of the County Administrator’s approval of the ranking of firms and execution of agreement with Cigna Dental Health of Florida, Inc. for requirements of group dental self-funded (PPO) benefits.
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Recommended Action:
Recommended Action
Ratify, confirm, and enter into the minutes the ranking of firms and agreement with the number one ranked firm, Cigna Dental Health of Florida, Inc. (Cigna), for requirements of group dental self-funded (PPO) benefits
Contract No. 156-0267-P(JA) in the amount of $18,970,705.00 for a term of sixty (60) months beginning January 1, 2017.
The agreement was approved and executed by the County Administrator due to time sensitivity to avoid a lapse in employee benefit coverage.
Body
Strategic Plan:
Create a Quality Workforce in a Positive, Supportive Organization
1.3 Make workforce safety and wellness a priority
1.4 Maintain a fair and competitive compensation package
Summary:
The purpose of this competitive request for proposal (RFP) process was to hire a dental plan insurer to replace the current contract set to expire December 31, 2016.
Background Information:
The Purchasing Department on behalf of Human Resources (HR) released the RFP on May 27, 2016 for dental self-funded benefits. An evaluation was held on July 12, 2016 with a final recommendation received from HR on July 14, 2016.
The firms in order of ranking are on the attached ranking spreadsheet.
HR was unable to complete the contracting process for approval by the Board prior to the expiration of the current agreement. In order to ensure uninterrupted benefits to employees across the Unified Personnel System (UPS), the Board delegated the item to the County Administrator for execution at its December 13, 2016 meeting, with ratification by the Board set to occur at the first meeting in January 2017.
The new contract will provide employees with the same schedule of benefits as the current program. There are no increases to employee or employer contributions for this benefit. Consistent with the current program, employees have the option of this dental PPO coverage, or the fully-insured dental benefits. The network of dental providers is unchanged.
The negotiation process yielded an administration fee reduction of $6,000.00 (2%) annually.
Fiscal Impact:
Sixty (60) month claims expenditure not to exceed: $18,529,105.00
Sixty (60) month administrative fee expenditure not to exceed: $441,600.00
Total sixty (60) month expenditures not to exceed: $18,970,705.00
Funds are derived from the Human Resources’ Employee Benefits Fund
Staff Member Responsible:
Holly Schoenherr, Director, Human Resources Department
Joe Lauro, Director, Purchasing Department
Partners:
N/A
Attachments:
Services Agreement
Letter of Intent
Performance Guarantee Agreement
Ranking Spreadsheet