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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Kim Shanklin, Chief People Officer |
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PRESENTER(S): |
Ann Green-Barton, Manager Total Rewards |
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TITLE:
title
Contract: Medical Insurance Services - Bargaining Unit Employees (Public Employers Health Plan)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve and authorize the Executive Director to execute the 5-year base contract and associated disbursements with Public Employers Health Plan (PEHP) for medical insurance services in the not to exceed amount of $50,000,000 over five years.
BACKGROUND:
This contract purchases medical insurance coverage for bargaining unit employees through Public Employers Health Plan (PEHP) for Utah Transit Authority (UTA).
DISCUSSION:
UTA offers medical insurance coverage through the Joint Insurance Trust managed by the Joint Insurance Committee (JIC). This committee consists of three UTA representatives, three Amalgamated Transit Union Local 382 representatives, and a one external representative selected by the two parties. The JIC traditionally selects two vendors to provide health insurance benefits through two vendors. The JIC conducted an RFP for medical insurance benefits. As a result of this process, the JIC selected Public Employers Health Plan (PEHP) as one of the vendor options to continue providing medical insurance benefits. This contract is for an initial five-year period from May 2022 through April 2027, with the option to extend the initial term for up to five additional years. The structure of this contract allows UTA to continue with PEHP as a provider beyond five years if UTA believes the terms, cost, and service are competitive. Staff will seek additional board approval of any option years beyond the initial five-year base contract period.
Experience with PEHP has been positive overall from a customer service standpoint, rates have been competitive, and the network of providers allows employees a greater selection when seeking care.
CONTRACT SUMMARY:
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Contractor Name: |
Public Employers Health Plan |
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Contract Number: |
#21-03531BM |
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Base Contract Effective Dates: |
May 1, 2022 through April 30, 2027 |
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Extended Contract Dates: |
Pending future board approval |
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Existing Contract Value: |
$0 |
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Amendment Amount: |
$0 |
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New/Total Contract Value: |
$50,000,000.00 |
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Procurement Method: |
Request for Proposal (RFP) |
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Budget Authority: |
Included in operating budgets |
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ALTERNATIVES:
Extend current contract or stop providing health insurance benefits
FISCAL IMPACT:
Costs are included in the 2022 budget
ATTACHMENTS:
Contract: Bargaining Unit Employees Medical Insurance (Public Employers Health Plan)