08-10-10 Regular School Board Meeting
Agenda Item #26


Title
2011 Medical Third-Party Administrator Recommendation

Discussion

The School Board of Brevard County, Florida contracts with a Third-Party Administrator (TPA) to administer the self-funded health plan on behalf of its roughly 13,000 covered employees and family members.  In April 2010, a formal Request for Proposals (RFP) was submitted jointly by BPS and Brevard County Government through the Brevard County Government Purchasing Services Division soliciting proposals for TPA services to be provided to School Board health plan participants, as well as County Government participants.  While the Schools and County jointly solicit TPA services, each entity establishes its own plan of benefits and retains its own risk for claims costs.

The Superintendent's Insurance Advisory Committee (SIAC) served as the RFP evaluation committee on behalf of the school district.  A total of six (6) responsive proposals were reviewed and five (5) vendors were requested to conduct a follow-up interview.

Following the interviews, the SIAC ranked the presenters, and three (3) finalists were requested to make Best and Final proposals as follows: 

1.  Aetna         
2.  CIGNA Healthcare
3.  United Healthcare

Based on the Best and Final proposals presented, the SIAC ranked CIGNA Healthcare as its first choice for negotiations and contract award. 

The selection of CIGNA Healthcare as BPS' single TPA will reduce healthcare trust fund administrative expenses in 2011 by $219,699, even with the inclusion of behavioral health coverage upon the end of the contract 12/31/10 with our fully insured behavioral health provider.  Details of the financial impact of the medical RFP are included in Attachment A. 



Recommendation
Accept the recommendation of the Superintendent's Insurance Advisory Committee (SIAC) to negotiate with the top-ranked proposer, CIGNA Healthcare, to provide medical and behavioral health plan Third Party Administrator (TPA) services for up to five (5) years effective January 1, 2011. 

Meeting Date(s)
Information - 8/10/2010
Consent after Information8/31/2010

Authority for Action
F.S. 768.28; 1001.42

Involves Expenditure of Funds Directly in the Classroom
No

Source of Funding
Other Sources

FY
Amount
Budgeted
Fund
Cost Center
Project
Function
Object
Program
10-113,506,963Y72098500010027500772000

Contact
Susan G. Standley, Extension 216


Attachment:  C&B_ATTACHMENT A.pdf