Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Employee Benefits topic
No spam. Unsubscribe anytime.
Board approves new vendor contracts for self‑insured health plan; Anthem chosen for medical/pharmacy
Summary
After an RFP, the board approved contracts recommending renewals with Delta Dental and Hartford and a vendor change to Anthem for medical and pharmacy services; presenters estimated about $3.1 million in cost avoidance over three years and noted potential network negotiation risks.
The Rockwood Board of Education voted to approve vendor contracts resulting from a formal RFP process for the district’s self‑insured health plan.
Administration recommended contract awards that include renewing Delta Dental (dental) and Hartford (life insurance and long‑term disability) and selecting Anthem for medical and pharmacy services. Dan Steinberg, presenting the recommendation, summarized the RFP outcomes and introduced Dean Egervin to discuss financial details.
Dean Egervin said Anthem’s rebate structure and administrative approach could reduce net costs and improve cash flow; he presented an estimated $3,100,000 in cost avoidance over three years if the district approves the change. ‘‘When we put that all together, basically, the estimated savings over 3 years… is $3,100,000,’’ Dean said.
Presenters also described a high network match for Anthem (99.32%) based on a large claim dump used for matching provider addresses, but they cautioned about potential disruption related to larger carrier‑hospital negotiations (for example, BJC contract negotiations) that can affect access. Board members asked about network stability and disruption risks; administration said they considered those factors in recommending Delta for dental (despite higher cost) to avoid coverage disruption.
During the vote, one board member disclosed a conflict and abstained: a committee member said they were previously employed by Anthem and Carillon/Carillon‑named pharmacy and asked to abstain. The motion carried.
The board directed administration to return on June 4 with more detailed premium information; presenters said they will provide updated premium recommendations after finalizing the contract details and reviewing current claims trends.
Action recorded: motion to approve contracts to vendors based on the RFP process (medical/pharmacy: Anthem; pharmacy partner listed as Carillon/Carillon Rex in the agenda; dental: Delta Dental; life/LTD: Hartford).
