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?.0 # q <br />Request for Authorization to Issue an RFP for an Agent of Record <br />for Health and Dental Insurance and COBRA Administration <br />By: Givonna Reed Kone, Human Resources Manager <br />Background <br />In 2004, CBIZ Benefits became the City's Agent of Record for health and dental <br />insurance and COBRA administration. Agents of Record are responsible for advising <br />and assisting the City in encouraging consumerism and designing health programs; <br />advising and assisting the City in controlling health and dental care costs and evaluating <br />plan design options; advising the City on potential gaps or overlaps in coverage's, and <br />negotiating with carriers on the City's behalf. <br />Over the course of the last year, staff has been approached by several agents who have <br />requested an opportunity to market their products and services to the City. Staff has met <br />with several of these firms and is recommending that the City Council authorize staff to <br />issue an RFP for agent/broker services. Issuing a formal RFP will afford the City an <br />opportunity to formally evaluate agents to determine which agent's products, services and <br />costs best meet the City's needs. <br />Funding Source <br />There are no significant costs associated with issuing an RFP for an Agent of Record. <br />Costs associated with advertising the RFP will be paid from Help Wanted Advertising <br />funds from the Administrative Services budget. <br />For health insurance, the City's agent of record is paid $11 per employee per month, or <br />approximately 1.5% of premiums, and for dental insurance $1.00 per employee per <br />month. Agent commissions are built into premiums. Former employees who elect <br />COBRA coverage pay a 2% administrative fee directly to the City's agent of record. Io- <br />date, there have been no additional fees charged by CBIZ for COBRA administration. <br />Any additional fees charged would need to be added to the 2011 General Fund Budget. <br />Committee Action <br />Make a motion recommending that the City Council authorize staff to issue an RFP for <br />agent/broker services for health and dental insurance and COBRA administration. <br />Reviewed by: <br />City Administrator, <br />CC: 03/23/10 <br />