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LETTER to the DECATUR CITY COUNCIL <br /> Finance Department <br /> DATE: October 14, 2021 <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 2022 <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, 2022 to <br /> December 31, 2022. <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 BlueShield continues to offer the largest network of doctors and hospitals in and out of <br /> state and offers the best pricing offerings for coverage for medical care due to its substantial <br /> network of medical providers. <br /> Current Proposed %Change <br /> 2021 2022 <br /> Illinois access fee 1.57% 1.57% 0.0% <br /> Administration fee $ 59.90 $ 59.60 (0.5)% <br /> Rx rebate credit <br /> ($95,10) ($70.47) (25.9%) <br /> Medical rebate credit 1 $ 0.00 $ (2.50) ---% <br /> Additional services $ 2.52 $ 2.52 0.0% <br /> Net administration fee ($32.68) ($ 10.85) ---% <br /> Stop loss $ 111.04 $ 124.33 12.0% <br /> Fixed cost per month $ 80.45 $ 116.50 44.8% <br /> Projected cost $526,000 $753,000 43.0% <br /> The proposed 2022 fixed cost fees quoted by BlueCross BlueShield have increased in the <br /> aggregate versus the current 2021 fixed cost fees. <br /> Page 1 of 2 <br />