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KANSAS CITY, Mo. – The University of Missouri System is dedicated to providing affordable, accessible retiree medical coverage. Following an extensive Request for Proposal (RFP) process, the University of Missouri Board of Curators today approved the selection of UnitedHealthcare as its new insurer for Part A & B Medicare-eligible retiree medical insurance at its meeting in Kansas City. The change is effective January 1, 2017.
The agreement with UnitedHealthcare will reduce current medical costs by an estimated $11 million. Separate negotiations with Express Scripts, the university’s pharmacy benefits manager, are estimated to create an additional $3 million in prescription costs. Any reduction in cost will be shared between the retirees and the university, since each pay a percentage of the cost through premiums.
“We value the contributions and continued support of our retirees. In working with them on this process, we committed to providing them comparable benefits to their current plans while lowering costs and increasing benefits for them and the university,” said UM System Interim Vice President for Human Resources Kelley Stuck. “This approval is yet another step in UM System’s retiree insurance review that began in January 2015. UnitedHealthcare demonstrated enhanced capabilities throughout the entire procurement process, and their offerings align best with the needs of our institution and this important constituent group.”
The university routinely conducts a competitive RFP process to ensure that the administrative fees, administrative services and network discounts associated with its current medical benefit plan are competitive in the market. Following initial RFP responses, the university invited qualified bidders to finalist meetings to evaluate which provider would be selected as the vendor. Selection criteria included plan design, member education and resources, physician/hospital network match, and financial and analytic strength.