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. , <br /> DEPARTMENT OF FINANCIAL MANAGEMENT <br /> RISK MANAGEMENT DIVISION <br /> MEMORANDUM NO. 99-110 <br /> October 12, 1999 <br /> TO: The Honorable Mayor and City Council <br /> ��FROM: Rolanda Johnson, Acting City Manager � �� <br /> Beth Couter, Director of Financial Management� <br /> J. Barry Leonard, Risk Manage� <br /> SUBJECT: Self Insured Group Health Renewal <br /> This is the third year of the normal three year cycle for our Group Health <br /> insurance program. Next year, staff will conduct a competitive bid process to select the <br /> Group Health provider for the ensuing three year period. Health Care Services (Blue <br /> Cross/Blue Shield) is our current provider for administrative services and Stop Loss <br /> insurance. <br /> Blue Cross/Blue Shield has proposed an overall 5.744% increase in the fixed <br /> fees cost for our group health program. The renewal is for the period November 1, <br /> 1999 to October 31, 2000. Industry trends indicated an annual increase of 8 to 12% <br /> for the current year. <br /> Blue Cross/Blue Shield had also proposed an increase to 30% from 25% in the <br /> Preferred Provider Organization Access Fee. This fee is the percentage of PPO <br /> discounts received that is returned to them. We were able to negotiate no change in <br /> the Access Fee. <br /> Attached is a the Resolution authorizing Health Care Services to be the provider <br /> for the period November 1, 1999 to October 31, 2000. Thank you for your attention to <br /> this matter. <br />