Title
Consider approving Resolution No. 2026-115 authorizing an Administrative Services Agreement with UMR, Inc. for medical plan administration services for three (3) years and increasing the City’s self-funded health plan budget by $600,000; and take appropriate action.
Body
REQUESTOR:
Human Resources Department
BACKGROUND:
The City of Farmers Branch recognizes that providing a competitive and comprehensive health insurance program is essential to attracting, retaining, and supporting a highly qualified workforce. Employee health benefits are a critical component of the City's total compensation strategy, promoting the well-being, productivity, and financial security of employees and their families. By offering access to quality healthcare coverage, the City demonstrates its commitment to employee wellness while ensuring its ability to recruit and retain the talented professionals necessary to deliver high-quality municipal services to the community.
The City of Farmers Branch provides health insurance benefits to eligible full-time employees through a self-funded health plan. In a self-funded plan, the City pays medical and pharmacy claims as they are incurred rather than purchasing a fully insured health plan from an insurance carrier at a fixed cost. This allows the City greater flexibility and control over cost strategies and plan design. To protect the City against catastrophic claims, stop-loss insurance is purchased to reimburse the City for claims that exceed specified thresholds.
Generally, every three years, the City works with its long-time insurance broker, McGriff Services (now a Marsh/McClellan company), to issue a Request for Proposal (RFP) to evaluate market offerings from a variety of carriers and to remain competitive in the employer space.
The RFP process was designed to evaluate vendors based on overall cost, program options, employee disruption, pharmacy management strategies, and long-term value to the City and its employees. The Ci...
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