R2000-207 AUTHORIZING APPLICATIONS

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• - I DEPARTMENT OF FINANCIAL MANAGEMENT � RISK MANAGEMENT DMSION MEMORANDUM NO. 2000-126 '� October 11, 2000 TO: The Honorable Terry M. Howley, Mayor City Council Members , FROM: Steve Garm ty Manager Beth B. Cout , irector of Financial Management J. Barry Leonard Risk Manager ,(�, � SUBJECT: GROUP HEALTH SELF-INSURANCE PROGRAM It has been the practice of Risk Management to conduct a competitive renewal for the group health insurance every three years. This year, twenty-one firms were invited to compete. Eight finns responded. Three firms, plus the incumbent, were selected to propose. They are: Health Care Services Corp. (BCBS) Incumbent Gallagher Benefit Service National Broker IRM/Acordia Regional Broker Consociate Group Local Broker , A significant amount of the responders data is proprietary, and we are not authorized by them to make it public knowledge. In order for you to understand why we are recommending one firm, we have included rankin�s rather than actual dollar fees or actual discount amounts. The primary goal was to select the most cost effective firm �vhose organization was at least as broad as the incumbent. See Summary Comparison of Responders. We recommend that Consociate be awarded our Group Health Insurance program for the period November l, 2000, to October 31, 2001. Barring major changes, we �vill renew �vith the recommended firm annually in 2001 and 2002. In order to effect the change to Consociate, �ve �vill need union agreement. In two of the collective bargainin� agreements, Blue Cross Blue Shield is specifically mentioned as the PPO provider. Without their agreement, �ve will have to stay �vith Blue Cross Blue Shield at the higher cost. � We have met with all the unions, and union leadership have agreed to take it to their inemberships for a vote.