Group Health Insurance

The City of St. Petersburg, Florida, located in Pinellas County, is seeking proposals for comprehensive group health insurance administrative services through RFP-24-004. The procurement targets a five-year contract with three potential one-year renewal options, focusing on administrative services for medical benefits for approximately 3,065 eligible employees (with 2,550 currently participating) and 1,200 retirees. Required services include creating Summary Plan descriptions, member insurance cards, claims reports, providing an on-site representative, developing a plan sponsor website with reporting and eligibility functionality, offering individual internet-based member access, a mobile app, and a toll-free member services number. The city currently offers multiple plan options including PPO, EPO, High Deductible Option with Health Reimbursement Account, and a High Deductible Basic Plan. Proposals are due on October 26, 2023, at 3:00 pm, with an anticipated recommendation of award to City Council on December 7, 2023. The selected vendor must demonstrate capabilities to manage healthcare provider networks, provide competitive discounts, control costs, and coordinate with the city's on-site Health and Wellness Center.

The procurement does not specify explicit set-aside designations for disadvantaged enterprises. The incumbent vendor is UnitedHealthcare, which has administered the plan since 2010, transitioning from a fully insured to a self-funded arrangement. The annual expenditure is estimated at approximately $58,000,000, with the city currently contributing 75% of premiums for active employees and their dependents. The vendor must provide an annual dollar allowance of at least $50,000 for city-sponsored employee wellness programs and administer the plan in compliance with federal laws, including the Affordable Care Act. The contract requires maintaining specific insurance coverages, including $1 million in commercial general liability insurance, $1 million in commercial automobile liability insurance, and workers' compensation insurance. The city reserves the right to change plans, insurance carriers, or administrative service providers at any time, and to not exclusively utilize this contractor for similar services. Existing infrastructure includes an established healthcare claims history, with total net paid claims of $35,235,332 over the period from September 2020 through August 2023.