Agenda Item #18
Contractual services contract for Employee Vision Insurance
The district's contract for employee vision insurance with Humana expires on December 31, 2016. The district's broker and consultant for employee benefits Willis, Towers, Watson was tasked to issue a solicitation in the marketplace for these services in order for the district to continue these services for our employees without disruption starting January 1, 2017. Willis, Towers, Watson performed this process in early February 2016 and seven (7) service providers responded to the solicitation. One (1) provider declined to offer a vision product, the remaining six (6) vision service providers offered (6) different products for these services. The district’s current incumbent, Humana offered a 9.5% reduction in the current rate for this coverage, no provider disruption, and a three (3) years price guarantee. However, two other proposers, Davis Vision offered a 23.5% reduction in current rates and United Healthcare provided a 14.5% reduction from current rates, but the provider disruption to staff and the lack of clients in Florida is a concern. As a result, Humana’s proposed pricing at 9.5% lower than current along with no provider disruption was chosen as the best vendor to provide these services. The proposed rates and vendor disruption information can be found in the attached analysis as compiled by Willis, Towers, Watson. The result of this selection will reduce the current basic vision month rate for an employee only plan from $4.92 to $4.45 with an estimated savings to employees of $27,040 for those who choose this plan and from $7.42 to $6.72 for the employee only enhanced vision plan with an estimated saving to these employees of $42,354.
Approve a three-year contract with Humana beginning January 1, 2017 to provide the district with Employee Vision Insurance services.
Information - 5/10/2016
Consent after Information5/24/2016
Authority for Action
Board Policy 6320, Florida Administrative Code 6A-1.012(11)(12)(15)
Involves Expenditure of Funds Directly in the Classroom
Source of Funding
Operating - Other
Mark Langdorf, Director, Office of Employee Benefits and Risk Management, ext. 620
Attachment: Final Vision Analysis Brevard Public Schools Marketing Analysis 3 22 16 .pdf