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COUNCIL MEMORANDUM <br /> #2007-29 <br /> November 15, 2007 <br /> To: Honorable Mayor and City Council <br /> From: Steve Gar n, City Manager <br /> Subject: Health I nce <br /> In considering the options for TPA, the following highlights the city staff s position <br /> on the issue (we have not included Troxell/Health Alliance in the analysis <br /> because of lack of local providers and information despite the fact that they are <br /> an excellent firm). , <br /> For almost two years, non represented employees have been moved to a new <br /> three tier health plan choice. This was designed, with the help of Consociate, to <br /> put more responsibility for health care on the employee and away from the city. <br /> The program is innovative and unique. It includes weight loss and smoking <br /> cessation programs as well as individual disease management care for certain <br /> employees with chronic conditions. Whether an insurance company, <br /> administering a more conventional health insurance program can adequately <br /> administer the city's program is in doubt as stated by our Segal consultants. <br /> However, the Behnke organization did a�rm that it can administer the program. <br /> Police personnel will join this new program in January 1, 2008. It is a pending <br /> proposal for the remaining finro employee unions. <br /> Because of the new program, it is fully expected that the city's health care costs <br /> for employees will be reduced in the future, regardless of the choice of the <br /> TPA. <br /> Consociate's administrative fees are decidedly less than are Behnkes. (BS/BC). <br /> The inherent problems of comparing discounts, coupled with the unfortunate <br /> incident of premature disclosure of one competitors discounts and Behnke's error <br /> in submitting dual discount schedules, one of which was in error, makes accurate <br /> discount comparisons difficult if not impossible. In addition, Consociate is the <br /> only bidder that actually certified that the discounts they provided as being the <br /> actual costs for the Decatur area health care providers. Behnke and R. W. <br /> Troxell refused to do so claiming it was proprietary information. This also made it <br />