R2010-233 AUTHORIZING AGREEMENT - Laserfiche WebLink

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DEPARTMENT OF FINANCIAL MANAGEMENT RISK MANAGEMENT DIVISION MEMORANDUM NO. 2010-OS December 1, 2010 TO: Honorable Mayor Michael T. McElroy and City Council FROM: Ryan McCrady, City Manager Ron Neufeld, Director of Financial Management Scott Clark, Risk Manager SUBJECT: GROUP HEALTH SELF-1NSURANCE SUMMARY RECOMMENDATION: It is recommended by staff that the City Council approve the attached resolution awarding the contract for the administration of the City's self-insured group health benefit plans including claims administration, stop loss insurance, integrated care management, and disease management to Blue Cross Blue Shield of Illinois and the producer representative Behnke & Company for the period January l, 2011 through December 31, 2013 and for two (2) additional one (1) year terms at the City's option. BACKGROUND: At City Council's direction a Request for Proposals for the administration of the City's Group Health Self-Insured benefit plan was prepared, sent out and responses from five (5) vendors were received on October 15t". Responses were received from Clemens & Associates, Mercer, Consociate Dansig and Behnke & Company. Responses were summarized and along with other information were presented to a Council Study session on November 15t", 2010. Additional information was provided at the study session including a discussion of the staff's recommendation. POTENTIAL OBJECTIONS: There are no known objections. STAFF REFERENCE: Ron Neufeld, Finance Director and Scott Clark, Risk Manager will be in attendance at the City Council meeting to answer any questions of the Council on this item. BUDGET IMPACT: The costs and fees for claims administration is annually budgeted in the Medical operating budget and this contract will not have a negative impact on the budget.