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INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7862
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September-6, 1994
�� �o�Qg To the Mayor and Members of the City Council
rXps Subject: SOLICITATION OF PROPOSALS FOR EMPLOYEES' VOLUNTARY
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DENTAL PLAN AND AMENDMENT OF PERSONNEL REGULATION
(I-8)
Over a period of several months, a task force from the City's Employee Insurance & Benefits
Advisory Committee has been studying the merits of soliciting proposals for the employees' voluntary
dental insurance program. There are two companies which currently have access to the City's payroll
deduction facility which allows employees to purchase individual dental insurance through dental
maintenance organizations (DMO's). One vendor markets directly to employees not utilizing the
payroll deduction facility. The City does not contribute toward the cost of this coverage.
Committee concerns about customer service, awareness that the dental plan had never been bid, and
advice from the City's group health and life consultant that proposals would likely produce an
attractive package for employees resulted in the Committee's appointment of a task force to study
the issue and recommend action.
After study sessions and presentations from the existing three vendors, the Committee directed the
task force to proceed with proposal solicitation. The Committee is sensitive to the fact that there are
many employees currently enrolled with the three existing providers and that any recommended
change may affect these employees'ability.to continue coverage through their existing-insurer. -It-was-
their opinion, however, that the proposal--process should be used to solicit the most comprehensive
coverage at the most advantageous price for all employees.
This proposal process is being handled by the City's consultant, Jim Mosley from Effective Plan
Management, Inc. who agreed to do so within the terms of his existing contract with the City. Advice
on certain aspects of the solicitation was sought from the City's Department of Law and on-going
staff support has been provided by Risk Management staff.
Interested vendors were asked to submit proposals to Effective Plan Management by July 28, 1994.
Over 25 vendors expressed interest in being allowed to submit proposals. The consultant will analyze
the proposals and meet with the task force to review them. The task force will then make a
recommendation to the Employee Insurance&Benefits Advisory Committee and the City's Personnel
Director.
This will likely take the form of recommending that the selected program be the only one authorized
to offer its' programs through.the payroll deduction method to allow more flexibility for the
Committee to explore other products and/or services which may be added to the voluntary program.
Although a change of this nature would potentially affect the current providers, they may continue
their relationship with their current enrollees through a direct payment mechanism.
CITY SECRETARY
FT. WORTH, TEX
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INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7862 _
G7FReo September 6, 1994
Arw To the Mayor and Members of the City Council Page,.2 of 2
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X7A Subject: SOLICITATION OF PROPOSALS FOR EMPLOYEES' VOLUNTARY
DENTAL PLAN AND AMENDMENT OF PERSONNEL REGULATION
0-8)
An amendment to the current Personnel Regulation (I-8) is being undertaken by staff to:
• give the Employee Insurance and Benefits Advisory Committee the authority to make
recommendations regarding award of available payroll deduction facilities, the City Manager
or designee having final authority regarding award of the privilege
• allow.the City Manager or designee the ability to change cost recovery rates from time to time
with prior notice to affected entities
• allow the City Manager or designee to rescind authority of the privilege to use the City's
payroll deduction facility with sixty (60) days' notice
• allow the Committee to recommend the withdrawal of the privilege due to failure to address
customer service complaints
Please let me know if you have any questions or require additional information.
Bob Terrell
City Manager
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OFFICIAL RECORD
CITY SECRUARY
FT. WORTH, K Y
ISSUED BY-THE CITY MANAGER FORT WORTH,TEXAS