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LETTER to the DECATUR CITY COUNCIL <br /> Financial Management Department <br /> #2019—13 <br /> DATE: November 13, 2019 <br /> TO: Honorable Mayor Moore Wolfe <br /> City Council <br /> FROM: Scot Wrighton, 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 2020 <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, 2020 to <br /> December 31, 2020. <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 /> 2019 2020 <br /> Illinois access fee 1.57% 1.57% 0.0% <br /> Administration fee $59.02 $59.02 0.0% <br /> Rx rebate credit ($49.36) ($56.72) -14.9% <br /> Additional services $2.52 $2.52 0.0% <br /> Net administration fee $ 12.18 $4.82 -60.4% <br /> Stop loss $76.06 $91.50 20.3% <br /> Fixed cost per month $90.27 $98.44 9.0% <br /> Projected cost $608,000 $658,000 8.2% <br /> The proposed 2020 fixed cost fees quoted by BlueCross BlueShield have increased in the <br /> aggregate versus the current 2019 fixed cost fees by 8.2%. <br /> Page 1 of 2 <br />