56-19 Authorizing Retension of Third Party Administrator - 2019.pdf

56-19 February 5, 2019 RESOLUTION WHEREAS, the Township of West Orange (the “Township”) has a need to acquire services for its self-insured health benefits program, including administration and claim processing through a non-fair and open process pursuant to the provisions of P.L. 2004, c.19 (N.J.S.A. 19:44A-20.5 et seq.); and WHEREAS, the procurement of insurance services, including health benefit insurance, is an exception to public bidding requirements pursuant to N.J.S.A. 40A:11-5(1)-(m), the procurement of which shall comply with N.J.S.A. 40A:11-5(1)(a)(ii); and WHEREAS, the Township’s Health Insurance Broker of Record issued a Request for Proposals to parties interested in providing health insurance services to the Township; and WHEREAS, the Township received proposals for Third Party Administrator Fees on a self-insured basis, as follows: Estimated Annual Fees IAA $628,723 UMR/United Health Care $502,253 Meritain $500,832 WHEREAS, the Broker of Record, Mayor, Business Administrator, and Township have reviewed the proposals received, and recommend that a one (1) year contract with an option to renew for (2) two years be awarded to Meritain Health, 300 Corporate Parkway, Amherst, New York, 14226, to provide administrative services as a Third Party Administrator (“TPA”) for the Township’s Limited Self Insured Health Benefit Program consistent with the proposal submitted by Meritain Health, annexed hereto as Exhibit “A;” and WHEREAS, pursuant to N.J.S.A. 40A:11-15, contracts for the provision of insurance, including the purchase of insurance coverages, insurance consulting or administrative services, claims administration services, and risk management may be for a term of three (3) years; and