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. • <br /> DEPARTMENT OF FINANCIAL MANAGEMENT <br /> RISK MANAGEMENT DNISION <br /> MEMORANDUM NO. 2001-107 <br /> October 24, 2001 <br /> TO: Honorable Terry M. Howley,Mayor <br /> City Council Members <br /> FROM: Steve Garman, City Manager �n�4.� <br /> Beth Couter, Director of Financial Management �� <br /> J. Barry Leonard, Risk Manager� <br /> SUBJECT: GROUP HEALTH SELF INSURANCE PROGRAM <br /> The new police and fire union contracts do not contain a stipulation that we use only Blue <br /> Cross Blue Shield (BCBS). Risk Management contacted BCBS and last year's conditionally <br /> recommended firm, Consociate Group, to submit proposals for the new contract year beginning <br /> November 1, 2001. Consociate Group provided four reinsurance options. BCBS does their own <br /> reinsurance. <br /> The benefit plan is unchanged. The PPO discounts are comparable when the BCBS <br /> access fee is added to the discounted claim cost. The provider networks are comparable. <br /> We recommend that Consociate be awarded our group health insurance program for the � <br /> period November 1, 2001, to October 31, 2002. Barring major changes, we would renew with <br /> Consociate in 2002 and 2003. <br />