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Council approves Asentria contract negotiations to tackle rising health-plan costs
Summary
Facing a 22% projected increase in health-plan costs driven by a handful of high-cost claimants, council voted to accept the evaluation committee’s ranking and direct staff to negotiate with top-ranked Asentria/Centria for benefits and risk-management consulting (not to exceed $75,000 per year).
The council approved the evaluation committee’s recommendation to begin contract negotiations with the top-ranked benefits consultant to address rapidly rising employee health-plan costs.
Staff reported that the city’s per-member per-month health cost rose from roughly $777 to about $886 over 2½ years and that a small share of high-cost claimants (about 1% of members) accounted for roughly 30% of plan costs. City HR staff said the evaluation committee reviewed seven proposals and invited all respondents for clarifying meetings before ranking Asentria (Centria) first.
Corey McMing, a Centria representative, told the council the firm works with local governments and that some of its state-level work could be adapted here. City staff and committee members emphasized the immediate need for a consultant to help contain costs, including pharmacy strategies, narrow-network options, and targeted care management for high-cost claimants.
Council approved the motion to accept the committee ranking and authorize staff to negotiate terms with the top-ranked firm; staff will return with negotiated contract terms. The motion passed unanimously.
Next steps: staff will finalize negotiations with the top-ranked firm and report contract terms back to council; the consultant is expected to provide recommendations during the July budget process.
