The Rockport City Council voted unanimously Aug. 6 to award the city’s employee health, dental and vision insurance to UnitedHealthcare and to sign a contract with benefits consultant Brinson (presented by Rent A Benefits) to manage the change and assist implementation. Council members also approved Blue Cross Blue Shield for employee life insurance.

City staff and consultants said UnitedHealthcare’s sealed-bid proposal produced immediate premium savings and offered two plan options: a plan with co-pays and a lower-deductible design and an HSA-compatible option with lower premiums. Nick, a consultant with Rent A Benefits, told the council that UnitedHealthcare “came back with a really competitive bid” and that offering a choice between a PPO-style plan and an HSA plan would “help the city save significant premium dollars.” Casey, the city’s benefits administrator, summarized the procurement and benefits options for council members.

Council and staff discussed whether the city should continue to fully pay the premium for the higher-cost “buy-up” plan or require employees to pay the difference if they choose it. Consultants presented possible compromises, such as depositing the premium difference into employees’ HSAs or splitting the HSA contribution to reduce employee buy-up costs. The consultants said the HSA plan’s out-of-pocket maximum is lower than the buy-up PPO’s maximum on paper but lacks co-pays, so employee behavior will determine actual savings.

Consultants and staff emphasized timing constraints: the current contract must be replaced before the insurer’s renewal deadline at the end of September, and the proposed savings are contingent on executing the Brinson contract. Brinson’s consulting fee is expected to be effectively covered by implementation credits UnitedHealthcare offered and by long-term premium savings, the report said.

Councilmember (unnamed) moved to approve the award of employee health, dental and vision coverage to UnitedHealthcare, life insurance with Blue Cross Blue Shield, and to authorize signing the Brinson contract; the motion was seconded and carried unanimously.

The council asked staff to return with detailed enrollment and rollout timing and to consider a one-year “stair-step” approach so the city covers both plans initially while education and enrollment patterns are established. Staff said they would present final contract language and implementation timelines before the plan start date.

The council’s action covers active employees, retiree life-insurance coverage listed on the agenda, and authorizes a consultant contract required for realizing the proposed savings.