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GOVERNMENT F   L   O   R   I   D A Interoffice  Mem.orand.ui January 23,2009 I .  CONSENT AGENDA COUNTY ADMINISTRATOR 3 TO: FROM: CONTACT: SUBJECT: Mayor Richard T. Crotty f the Board of County Commissioners chardson, Manager, Purchasing and Contracts  Division Nancy Callahan, HumanResource Administrator, Human Resources Division 836-5817 Award of Invitation for Bids Y9-139-LC, Medical Excess  Loss Insurance RECOMMENDATION Approval to award Invitation for Bids Y9-139-LC,  Medical Excess Loss Insurance, to the low responsive  and responsible  bidder, UnitedHealthcare  Insurance  Company (UHC), in the estimated annual contract award amount of $519,968  for a  1-year term renewable for four   additional   1-year  terms  by  the  Purchasing and  Contracts  Division.     The  Human Resources  Division  concurs  with  this  request  and  anticipates  that  the  entire  estimated amount will be ordered on an annual basis. PURPOSE To provide medical excess loss insurance services for Orange County. DISCUSSION The   County's    health   plan   has   been   self    funded    since   January   1,   2007,   with UnitedHealthcare as the County's claims administrator.   The County also appointed UHC as fiduciary under the plan with respect  to administering all benefit  determinations and reviewing/rendering  final  decisions on all claims  appeals.    Excess loss insurance  is not included  in the County's  Administrative Services  Only (ASO)  contract  with UHC.   The County carries excess loss insurance on the self-funded  medical plan to protect  the plan and its assets from  catastrophic high cost medical claims (individual claims  in excess  of $500,000). Two bids were received  and evaluated for responsiveness  and responsibility.    The bid of Humana was determined to be non-responsive due to (1) the lack of a minimum AM Best rating of A and (2) the failure to comply with the lifetime maximumbenefit per member of $2,000,000.   These requirements were specified in the solicitation. Bid tabulationfollows: Bidder UnitedHealthcare Insurance Company *Humana Estimated Bid Amount $519,968 Non-responsive

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