R2015-120 AUTHORIZING CITY MANAGER TO SIGN AGREEMENT Bluecross Blueshield of Illinois

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Item Coversheet Page 1 of 1 Risk Management DATE: 10/23/2015 MEMO: MEMORANDUM NO.2015-017 TO: Honorable Mayor Moore-Wolfe and City Council FROM: Tim Gleason,City Manager Gregg Zientara,Director of Financial Management Scott Clark,Risk Manager SUBJECT: City Group Health Self INsurance SUMMARY RECOMMENDATION: Staff recommends that City Council approve the renewal of 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 BlueCross BlueShield of Illinois for period January 1,2016 through December 31,2016. BACKGROUND: The City Council on April 20,2015 awarded the group health broker contract to JL Hubbard dba SBSi Semonis. The contract began on June 1, 2015 and one of the tasks for the broker was to secure an administrator for the City's self-insured group health benefit plans since the contract with BlueCross BlueShield of Illinois expires December 31,2015. SBSi Semonis has recommended the City renew with BlueCross BlueShield of Illinois for the period January 1,2016 through December 31,2016. The estimated fees for administration along with prior year's fees are outlined on the attached Program Administration Fees schedule. BlueCross BlueShield of Illinois has been the City's self-insured group health administrator since January 1,2008 and has been an excellent administrator for the group health benefit plans. BlueCross provides a number of benefits to City employees and retirees inGuding the largest network of doctors and hospitals in and out of state. From the J.D.Power 2015 Member Health Plan Study. BlueCross BlueShield of Illinois ranking of 699 is the highest among health plans in the Illinois—Indiana region. The national average was 679 for all plans in 18 regions of the United States. POTENTIAL OBJECTIONS: None known. INPUT FROM OTHER SOURCES: Rick Semonis of JL Hubbard dba SBSi Semonis. STAFF REFERENCE: For questions or comments regarding this item,contact Risk Manager Scott Clark at 424-2803 or Finance Director Gregg Zientara at 424-2702.Rick Semonis from SBSi Semonis will be present at the City Council meeting of November 2,2015 to address any Council concerns. BUDGET/TIME IMPLICATIONS: Professional services are budgeted in the self-insurance fund for the administration of the group health benefit plans. ATTACHMENTS: Description Type Resolution B1ueCross BlueShield Resolution Letter BlueCross B1ueShield Administration Fees Backup Material BlueCross BlueShield Agreement Backup Material REVIEWERS: Department Reviewer Action Date Risk Management Bright,Debbie Approved 10/29/2015-4:38 PM https://decatur.novusagenda.com/AgendaWeb/CoverSheet.aspx?ItemID=288 10/30/2015