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LETTER to the DECATUR CITY COUNCIL <br /> Finance Department <br /> DATE: September 22, 2026 <br /> TO: Honorable Mayor Moore Wolfe <br /> City Council <br /> FROM: Melissa Hon, City Manager <br /> Michele Anderson, City Treasurer& Director of Finance <br /> Brian Hastings, Risk Manager <br /> SUBJECT: Resolution Authorizing Agreement with BlueCross BlueShield of Illinois for <br /> Administration of the City Group Health Benefit Plan for Calendar 2027 <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 for the period January 1, 2027 to December 31, 2027. <br /> Our advisor, First-Mid Bank, has secured a bid to maintain BlueCross BlueShield (BCBS)of Illinois <br /> as the third-party administrator with Sun Life as the stop loss administrator. <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. Sun Life became the stop loss administrator in 2026 and has provided <br /> excellent service. <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 /> 2026 2027 <br /> Illinois access fee 1.12% 1.17% 4.5% <br /> Administration fee $62.27 $64.52 3.6% <br /> Rx rebate credit $ (112.96) $ (97.95) (13.3)% <br /> Medical rebate credit $ (2.50) $ (2.20) (12.0)% <br /> Additional services $ 1.92 $ 1.92 0.00% <br /> Net administration fee $ (49.27 $ (31.71) (35.6)% <br /> Stop loss $272.13 $ 312.95 15.0% <br /> Fixed cost per month $227.43 $286.04 25.8% <br /> Projected cost $ 1,150,975.52 $ 1,137,822.15 (1.1)% <br /> Page 1 of 2 <br />