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County staff summarize benefits RFP; Kaiser renewal, UMR/Quantum recommended as alternative
Summary
HR and consultants briefed commissioners on a five-year benefits procurement: Kaiser offered a low renewal for its fully insured plan while UMR with Quantum care navigation was recommended as a flexible third-party administrator option with multi-year savings guarantees.
Clayton County human resources staff and outside consultants presented the results of a recent five‑year request for proposals for the county’s employee health benefits, outlining full‑insurance and self‑funded options and projected multi‑year savings tied to care-navigation services.
Jack Thompson, senior vice president at Marsh McLennan Agency, told the Board of Commissioners that the RFP attracted seven timely vendor responses and that the scoring committee recommended keeping Kaiser Permanente’s fully insured plan for Kaiser members and selecting UMR (a UnitedHealthcare-owned third‑party administrator) with Quantum Health for care navigation as an alternative for other plans.
Thompson said Kaiser’s final renewal for its fully insured product was a 3.4% increase after concessions that included a higher wellness budget and the addition of an AMATA diabetes and weight‑management program at no extra charge; he noted Kaiser has served Clayton County for decades and that the Kaiser proposal included a next‑year rate cap at 8%.
For the self‑funded option, consultants recommended UMR paired with Quantum, citing flexibility, reporting, and real‑time care navigation. Thompson said the Quantum model provides “white‑glove” care navigation that intercepts high‑cost claims earlier and that the consultant’s projections estimate approximately $4.7 million in cumulative savings over three years (roughly $1.2 million in year 1, $1.4 million in year 2 and $2.2 million in year 3) with performance guarantees and fee‑at‑risk arrangements.
Thompson described the difference between “bundled” and “unbundled” approaches: Kaiser’s fully insured product bundles administration, pharmacy and risk, while an open‑architecture TPA model separates those functions and allows targeted point‑solutions for diabetes and musculoskeletal care. He said UMR’s reporting and Quantum’s early engagement model could produce a projected 6% savings in year one and about 9.7% in year two if performance targets are met.
HR Director Pam Ambles and HR manager Angela Woods were present to answer technical questions; Interim CFO Angela Jackson joined the RFP committee and was recognized for her participation in the procurement. Commissioners asked clarifying questions about wellness funding, how employer‑funded wellness dollars are accounted for in actuarial projections and the likely near‑term county premium totals under each option. Consultants summarized aggregate premium figures: a Kaiser renewal offer with selected enhancements produced a total premium figure cited in the presentation at just under $14 million for the Kaiser block; the consultants’ modeled renewal across all plans was around $19.3 million with a UMR/Quantum design estimated to be just over $19.0 million — a roughly $300,000 modeled savings in the illustrative year, according to the presentation.
No binding vote was taken during the presentation; consultants left detailed slides and scoring materials for commissioners and staff to review before any contract or plan design change is scheduled for future action.
Speakers emphasized that the procurement adhered to the county’s practice of issuing an RFP every five years and that the committee conducted finalist presentations and detailed scoring before making recommendations to the board.
