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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance CFO: Antonio Puente, Jr. DATE: December 17, 2019 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager, or his designee, to utilize a contract through the City of Frisco Contract Number RFP #1303-035, for Healthcare Consulting Services regarding transparent pricing and quality metric for City of Denton employees; providing the expenditure of funds therefor; and providing an effective date (File 7250 – awarded to Alight Solutions, LLC, at the rate of $4.50 per employee per month, in the three (3) year not-to-exceed amount of $250,000). INFORMATION /BACKGROUND The City of Denton has utilized the services of Alight Solutions, LLC (formerly Compass Professional Health Services) since January 1, 2017. Alight provides employee benefit concierge services that help our employees and their dependents navigate the complexities of employee benefits. While we want our employees to become better stewards of their health, and to make more informed healthcare decisions, employees can become overwhelmed with the various “tools” (800 numbers, web portals, etc.) that are available to them. As health plans push more costs and more responsibilities onto the plan participants, it is imperative that our employees become “active” consumers of healthcare. Unfortunately, the reality is that most employees need help understanding the nuances of healthcare services, health plan provisions, physician evaluators, cost calculators, etc. Some studies suggest that while all health plans have these important and valuable tools available to plan members, only 2% of covered people actually take advantage of them. Alight provides employee benefit concierge services to over 2,000 companies, like Southwest Airlines and Atmos Energy, as well as 23 other cities in the Dallas-Fort Worth area. Alight helps our employees, and their families, make smarter healthcare decisions, while simplifying the administrative functions within the healthcare system. Alight can help employees find the highest quality and most cost-effective physicians, facilities, and medications, while connecting employees to the various healthcare programs and services that are available to them within our health plan. Additionally, Alight can help employees review the various bills and Explanation of Benefits (EOB’s) to ensure that they are being billed appropriately, and that the plan is paying appropriately…and can even help set up appointments for them. Alight serves as an employees’ single point of contact to answer benefit related questions and to guide them to the right providers, facilities, medications, and programs. The Alight Health Pro becomes an extension of our current benefits staff and of our healthcare third-party administrator, United Healthcare. The Health City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com Pro helps take some of the burden of managing the healthcare system off of our employees’ shoulders, so that they can focus on providing outstanding services to the citizens of Denton. Since January 1, 2017, the concierge services have been accessed nearly 1,200 times by 400 households. The majority of the requests were for cost estimates for services and doctor recommendations. Each of these interactions had a direct impact on total health care cost to both the employee and the City. Alight surveys show that 98% of employees and dependents are satisfied with the services they received. Alight estimates the interactions with our employees and dependents have saved the City approximately $690,000. On May 7, 2019, the City of Frisco awarded a contract to Alight Solutions LLC, which includes general beneficiary information, coordination of care, instruction regarding benefits available, consulting regarding healthcare benefits and available providers, consulting regarding cost efficiencies, medical record collection and charting, and provider bill review. The City of Denton has an Interlocal Agreement in place with the City of Frisco, therefore staff recommends utilizing Frisco’s contract for the purchase of this service. The per employee per month (PEPM) cost for this service has remained the same from when the City originally procured it in 2016. Pricing obtained through the City of Frisco has been competitively bid and meets the statutory requirements of Texas Local Government Code 271.102. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On April 1, 2013, Council approved the interlocal agreement with the City of Frisco (Ordinance 2016-291). RECOMMENDATION Award a contract with Alight Solutions, LLC, for Healthcare Consulting Services regarding transparent pricing and quality metric for City of Denton employees, in a three (3) year not-to-exceed amount of $250,000. PRINCIPAL PLACE OF BUSINESS Alight Solutions, LLC Lincolnshire, IL ESTIMATED SCHEDULE OF PROJECT This is a three (3) year contract. FISCAL INFORMATION This service will be funded out of the Health Insurance Fund, 850500.6705.0001. The budgeted amount for this item is $250,000. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Fee Components Exhibit 3: LLC Members Exhibit 4: Ordinance Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Linda Kile, 940-349-8388. Legal point of contact: Mack Reinwand at 940-349-8333.