Agenda Information Sheet
DEPARTMENT: Human Resources
CM/ ACM: Bryan Langley
Date: March 28, 2017
SUBJECT
Title
Receive a report, hold a discussion, and give staff direction regarding proposals received for City of Denton Employee Health Clinic and Operation Management Services.
Body
BACKGROUND
This item was originally presented to Council as an Item for Individual Consideration during the February 21, 2017, meeting. At that time the item was tabled for more information to be presented during the Work Session on March 28, 2017. Following this presentation, there is an action item on this RFP during the Items for Individual Consideration, #ID17-196.
Self-Funded Health Plan
The City of Denton moved to a self-funded health plan beginning on January 1, 2008. This change in health plan funding methodology was implemented after extensive discussion with all stakeholders, and with the approval of the City Council. Self-funding allows the City to retain the savings, and build up reserves within the Health Insurance Fund, when we experience good claim years. These reserves, coupled with our Stop Loss insurance (which protects the City against catastrophic health claims), allows the City to be able to weather those years were we experience bad claims, without having to make drastic changes to the health plan.
Our benefits consultant estimates, that since 2008, the City has saved over $13,000,000 when comparing our total self-funded health plan costs against our estimated equivalent fully-insured health plan premiums. This has allowed the City to build up $4,970,191 in reserves as of December 31, 2016.
Employee Health Center
In December of 2011, the City opened the Employee Health Center (Clinic). Although not directly tied to being self-funded, the Clinic is an important tool in the City's overall goal of improving the health and wellness of the employees, retirees, and dependents covered under the health plan. However, since we are self-funded, we benefit...
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