Title
Approval of Amendment No. 2, Novation of Contract, to General Services Agreement No. AGR20-49 with Aon Risk Insurance Services West, Inc., for Employee Benefits Consulting Services
Recommended Action
I move that Council approve Amendment No. 2, Novation of Contract, to existing General Services, Agreement No. AGR20-49 with AON Risk Insurance Services West, Inc., for Employee Benefits Consulting Services.
County Manager's Recommendation
The County Manager recommends that Council approve this amendment No. 2, Novation of Contract, to existing General Services, Agreement No. AGR20-49 as requested.
Body
On May 5, 2020, County Council approved AGR20-49 for Employee Benefits Consulting Services.
The services provided under this Agreement include analysis of financial and claim data and claim reports from the medical and dental plan Claims Administrators; conducting quality control reviews of contracted Claims Administrators; reviewing, analyzing and negotiating annual renewals from insurance carriers; developing funding rates, reserves, and cost projections for the County’s self-funded plans; identifying and communicating trends in cost and funding for the insurance industry; assessing the relative merits of conventionally insured versus alternate funding arrangements; evaluating managed care programs for implementation recommendation to County; conducting renewal review and analysis of retrospective and prospective costs; analyzing utilization patterns to determine areas of potential abuse; comparing the active covered employee data with expected employment levels and salaries; comparing current health care premiums with expected premiums; assisting with the development of corporate philosophy as it relates to its benefit programs; reviewing benefit programs to determine administrative burden and potential process efficiencies and communicating and assisting with federal and state regulatory compliance requirements.
On November 1, 2023, Amendment No. 1 to AGR20-49 was executed, extending the term as allowable under the initial contract.
As of January 1, 2024, AON Corporation moved all of its health and benefits clients previously under the entity AON Risk Insurance Services West, Inc. to the platform under the entity AON Consulting, Inc. This Amendment No. 2, executes a Novation of Contract to change the provider's name to AON Consulting, Inc Under the terms of this Novation, AON Consulting, Inc. accepts the assignment, transfer, and assumption of all the rights, interests, covenants, obligations, and liabilities of AON Risk Insurance Services West, Inc., identified under the original Agreement AGR20-49.
Alternatives
Council could choose not to approve this Amendment and terminate the contract with AON Consulting, Inc. In this case, staff would need to issue a new RFP for these services.
Fiscal and Staff Impact/Planned Item
There is no fiscal impact to this change as the costs for benefits consultant are identified.
Attachments
A - AGR20-49-A2 Aon Consulting
B - AGR20-49-A1 AON Risk Insurance Services West Inc
C - AGR20-49 AON Risk Insurance Services West Inc.