R2006-137 AUTHORIZING AGREEMENT - Laserfiche WebLink

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� '� SEGAL THE SEGAL COMPANY 101 North Wacker Drive. Suite 500 Chicago, IL 60606-1724 T312.98�.8500 F 312 984.8590 www seyalco.com August 30, 2006 VIA E-MAIL The Honorable Paul Osborne Mayor City of Decatur One Gary K. Anderson Plaza Decatur, IL, 62523 Re: Health Plan Consultant Review Dear Mayor Osborne: Thank you for the opportunity to describe how Segal can assist the City of Decatur, Illinois (the City) with a review of your current employee health programs. We have conducted many comparable analyses for other clients who wish to identify the cost drivers of their health plan. As a firm serving a number of public sector organizations, we have a deep appreciation for how difficult it is to ensure that employees and their families receive the most valuable benefits during a time of escalating healthcare inflation compounded by budget constraints, limited financial resources and increasing public accountability. Through discussion with City staff, we were requested to address the three elements enumerated in the I, "Request for Proposals for an Audit of Administration of the City of Decatur's Self-Insured Group Health Program" issued in June 2006, namely: I 1. Should the City remain self-insured? 2. Is the selection process for the program third party administrator equitable? , 3. Is the third party administrator accurately administering the plan? In this correspondence, we offer our approach to address numbers 1 and 3 listed above. Specifically, our proposed Funding Analysis will assist the City in making a determination about the best funding structure, based on the City's ability and desire to take on risk and the City's past healthcare experience. This analysis will focus on the City's current reserves and future reserve requirements. The Claims Audit we propose will evaluate the performance of the City's TPA in administering the Health Plan against the Plan Document, Summary Plan Description,and best practices. We are not presenting a proposal to address item number 2 above. An analysis of the selection process of the City's TPA would require market data to review the various options available and to independently validate the choice of Consociate at the time of that initiative. This data is no longer available. We believe a forward rather than retrospective review of the Health Plan's PPO will be most valuable to assist the City in future decisions. Benefits,Compensation and HR Consulting ATLANTA BOSTON CHICAGO CLEVELAND DENVER HARTFORD HOUSTON LOS ANGELES MINNEAPOLIS NEW ORLEANS NEW YORK PHILADELPHIA PHOENIX SAN FRANCISCO SEATTLE TORONTO WASHINGTON,D.C. Rt�; G Multinational Group of Actuaries and Consultants AMSTERDAM BARCELONA GENEVA HAMBURG JOHANNESBURG LONDON MELBOURNE ``��`� MEXICO CITY OSLO PARIS