St. Mary's County commissioners on March 6 authorized staff to award the county's and the Board of Education's joint employee health plan contract to CareFirst Blue Cross Blue Shield following a competitive solicitation.

The contract framework presented to the Board was developed with Bolton Partners, a benefits consulting firm. Mark (last name given in the meeting as Mark, Bolton Partners consultant) said the county's current arrangement with CareFirst combines a rate-based financial contract with risk protections and deep provider discounts, which produced the most favorable overall score for network breadth and cost.

"CareFirst had both the largest network and the deepest discounts," Mark said. "As part of this RFP, they reduced their fees by 13 percent, which produced roughly $300,000 of savings for the county and Board of Education compared with what otherwise would have occurred."

Sue Sabo (county benefits staff) and Mark described the recommended award as a six-year contract with annual renewals. Mark said CareFirst submitted a best-and-final offer that lowered a proposed rate increase to a zero-percent rate change for the coming year; Bolton Partners' analysis had forecast a roughly 7 percent increase based on utilization trends.

Commissioners acknowledged the advantages of a large network and of wellness and utilization management programs that can reduce long-term claims. Commissioner Perez thanked staff for the interagency work that produced the solicitation and recommended award.

The motion to "approve and authorize the contracting officer to award the St. Mary's County Government and Public Schools Health Plan contract to CareFirst Blue Cross Blue Shield" was made by Commissioner Raley and seconded by Commissioner Jarboe; the board approved the motion by voice vote.

The board noted the award will need separate action by the Board of Education if that board lacks a quorum on the same day.

Commissioners and staff cautioned that the no-rate-change outcome may be aggressive for a single year and emphasized that the $300,000 figure represented the ongoing savings from the reduced administrative fees negotiated this round.