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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