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Item Coversheet Page 1 of 2 <br /> in <br /> Financial Management <br /> DATE: 9/11/2017 <br /> MEMO: Letter to Decatur City Council Financial Management Department 2017-08 <br /> TO: Honorable Mayor Moore Wolfe and City Council Members <br /> FROM: Tim Gleason,City Manager <br /> Gregg D.Zientara,City Treasurer&Director of Finance <br /> SUBJECT: Resolution Authorizing City Manager to Execute Agreement with B1ueCross BlueShield of Illinois for <br /> Administration of the City Group Health Benefit Plan for Calendar 2018. <br /> SUMMARY RECOMMENDATION: <br /> City Administration recommends City Council approval of the attached Council Resolution authorizing the City Manager to <br /> execute the agreement for renewal of the administration of the City's self-insured group health benefit plans including claims <br /> administration and stop loss insurance for the period January 1,2018 to December 31,2018. <br /> BACKGROUND: <br /> B1ueCross BlueShield has been the City's third party administrator for the City self-insured group healthcare benefit plan since <br /> 2008 and continues to be an excellent administrator for the group healthcare benefit plan.B1ueCross continues to offer the largest <br /> network of doctors and hospitals in and out of state,and offers the best pricing offerings for coverage for medical care due to its <br /> substantial network of medical providers. <br /> Current Proposed Change <br /> Illinois access fee 1.57% 1.57% 0.0% <br /> Administration fee $59.02 $59.02 0.0% <br /> Rx rebate credit ($23.93) ($37.02) -54.7% <br /> Additional services $2.00 $2.00 0.0% <br /> Net administration $37.09 $24.00 -35.3% <br /> fee <br /> Stop loss $61.55 $69.78 13.4% <br /> Fixed cost per $ 100.42 $95.55 -4.8% <br /> month <br /> Projected cost $717,000 $686,800 -4.2% <br /> Refer to the fee comparison schedule in the medical renewal document attached for additional details on the pricing proposal. <br /> POTENTIAL OBJECTIONS: There are no known objections to this resolution request. <br /> INPUT FROM OTHER SOURCES: <br /> JL Hubbard Insurance and Bonds,Rick Semonis,Broker and Advisor to the City for Employee Benefit matters. <br /> STAFF REFERENCE: Tim Gleason,City Manager Gregg D.Zientara,City Treasurer&Director of Finance <br /> BUDGET/TIME IMPLICATIONS: <br /> Approval at this time will allow employee open enrollment period to be conducted during the month of October enabling improved <br /> timing of year to year transition with B1ueCross BlueShield of Illinois,providing benefit to all covered members. <br /> https:Hdecatur.novusagenda.com/AgendaWeb/CoverSheet.aspx?ItemID=1271 9/15/2017 <br />