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LETTER to the DECATUR CITY COUNCIL <br /> Financial Management Department <br /> #2018—12 <br /> DATE: August 27, 2018 <br /> TO: Honorable Mayor Moore Wolfe <br /> City Council <br /> FROM: Billy Tyus, City Manager <br /> Gregg D. Zientara, City Treasurer&Director of Finance <br /> SUBJECT: Resolution Authorizing Agreement with BlueCross BlueShield of Illinois for <br /> Administration of the City Group Health Benefit Plan for Calendar 2019 <br /> SUMMARY RECOMMENDATION: <br /> City Administration recommends City Council approval of the attached resolution authorizing the <br /> agreement for renewal of the administration of the City's self-insured group health benefit plans <br /> including claims administration and stop loss insurance for the period January 1, 2019 to <br /> December 31, 2019. <br /> BACKGROUND: <br /> BlueCross BlueShield has been the City's third-party administrator for the City self-insured group <br /> healthcare benefit plan since 2008 and continues to be an excellent administrator for the group <br /> healthcare benefit plan. <br /> BlueCross continues to offer the largest network of doctors and hospitals in and out of state and <br /> offers the best pricing offerings for coverage for medical care due to its substantial network of <br /> medical providers. <br /> Current Proposed % Change <br /> 2018 2019 <br /> Illinois access fee 1.57% 1.57% 0.0% <br /> Administration fee $59.02 $59.02 0.0% <br /> Rx rebate credit ($37.02) ($49.36) -33.3% <br /> Additional services $2.00 $2.00 0.0% <br /> Virtual visits - $0.52 - <br /> Net administration fee $24.00 $ 12.18 -49.2% <br /> Stop loss $69.78 $76.06 9.0% <br /> Fixed cost per month $95.55 $90.27 -5.5% <br /> Projected cost $686,800 $608,000 -11.4% <br /> The proposed 2019 fixed cost fees as quoted by BlueCross BlueShield have declined versus the <br /> current 2018 fixed cost fees by 5.5%. The decline is the result of increased Rx rebate credit offset <br /> by increased "stop loss" fees. The Rx rebate credit is the result of plan incurrence of a greater <br /> Page 1 of 2 <br />