BY COUNCILOR KRAUSE:
RESOLVED, that Mercer Health and Benefits, LLC, be and hereby is awarded a contract for a dependent eligibility audit of the city’s health insurance medical plan for the human resources division in accordance with its proposal of $25,000, net 30, FOB destination, payable out of the Medical Health Fund 630, Department/Agency 036, Organization 1650, Object 5808, and Requisition 06-0662.
STATEMENT OF PURPOSE: This resolution awards a contract to Mercer Health and Benefits, LLC, for a dependent eligibility audit of the city’s health insurance medical plan in accordance with its proposal of $25,000, payable out of the medical health fund.
Due to emerging concerns with vendor dependent eligibility management and the possibility of ineligible dependents enrolled in its health care plans, the city of Duluth intends to conduct a dependent eligibility audit. The city’s objectives for the audit include:
1. Quantifying the number of covered dependents not satisfying the plan’s eligibility requirements.
2. Disenrolling ineligible dependents, thereby resulting in a cost savings to the city; and
3. Implementing procedures to minimize enrollment of ineligible dependents in the future.
A subcommittee of the labor/management health insurance committee reviewed the proposals, found that the proposals from Mercer and HRAdvance contained the same basic elements, and determined that Mercer was the low bidder. Given that, and the city’s positive past experience with Mercer, the subcommittee agreed to recommend Mercer to the committee of the whole. The labor/management health insurance committee met November 14, 2006, and unanimously approved awarding the bid to Mercer.