Title
Consider/Discuss the Request for Proposal Strategy and Timeline for Medical/Prescription/Dental/Vision/Employee Assistance Program Plans under the Comprehensive Benefits Offered to City of McKinney Employees
Summary
COUNCIL GOAL: Operational Excellence
2B: Continuously provide a high level of customer service to our citizens.
Financially Sound Government
4D: Create financial plans for future growth as well as future maintenance.
MEETING DATE: March 18, 2025
DEPARTMENT: Human Resources
CONTACT: Jim Parrish, Director of Human Resources
Olivia Nahas, Human Resources Manager
RECOMMENDED CITY COUNCIL ACTION: no action - discussion only
ITEM SUMMARY:
Staff seeks to update council on the RFP strategy and timeline for our major lines of coverage under the comprehensive benefits offered to City of McKinney employes, to include Medical TPA, PBM, Dental, EAP, and Vision.
BACKGROUND INFORMATION:
• The City is partially self-funded, with Cigna providing medical/dental administrative services and pharmacy benefits administration for the past 10+ years.
• The City has one remaining renewal option for Cigna through 2026 but is choosing to go out for bid for medical TPA, PBM, Dental, and EAP, as well as Vision. New agreements will be effective 1/1/2026.
• The last RFP cycle (2021) yielded only two bidders limiting the City's ability to ensure competitive pricing and service quality.
• The City is seeking a partner that will provide greater transparency and actively support cost management strategies.
• HUB International, the City’s benefits broker, is facilitating the RFP process.
FINANCIAL SUMMARY: N/A
BOARD OR COMMISSION RECOMMENDATION: N/A