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R99-108 AUTHORIZING APPLICATIONS
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R99-108 AUTHORIZING APPLICATIONS
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4/7/2016 4:50:09 PM
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4/7/2016 4:50:07 PM
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Resolution/Ordinance
Res Ord Num
R99-108
Res Ord Title
AUTHORIZING APPLICATIONS FOR GROUP HEALTH INSURANCE COVERAGE
Approved Date
7/12/1999
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in order that the Claim Administrator be able to make Claim Payments in accordance with MSP <br /> • laws. <br /> The Employer representsthat it has included the provision stated in this Section XVI.C.in its Plan <br /> Document. <br /> XVII. CLAIM ADMINISTRATOR'S SEPARATE FINANCIAL ARRANGEMENTS WITH PROVIDERS <br /> All amounts payable to the Claim Administrator by the Employer for Claim Payments provided by the <br /> Claim Administrator and applicable service charges pursuant to the terms of this Agreement and all <br /> required deductible and Coinsurance amounts under this Agreement shall be calculated on the basis <br /> of the Provider's Eligible Charge less the ADP, unless otherwise directed in writing by the Employer, <br /> for Covered Services rendered to a Covered Person, irrespective of any separate financial arrange- <br /> ment between any Administrator Provider or the Employer and the Claim Administrator. <br /> The Employer acknowledges that the Claim Administrator has contracts with certain Providers ("Ad- <br /> ministrator Providers") for the provision of, and payment for, health care services to all persons en- <br /> titled to health care benefits under individual certificates, agreements and contracts to which the <br /> Claim Administrator is a party, including the Covered Persons under this Agreement, and that pur- <br /> suant to the Claim Administrator's contracts with Administrator Providers, under certain circum- <br /> stances described therein,the Claim Administrator may receive substantial payments from Adminis- <br /> trator Providers with respect to services rendered to all such persons for which the Claim <br /> Administrator was obligated to pay Administrator Providers, or the Claim Administrator may pay Ad- <br /> ministrator Providers less than their Claim Charges for services, by discounts or otherwise, or may <br /> receive from Administrator Providers other allowances underthe Claim Administrator's contracts with <br /> them.The Employer acknowledges that in negotiating the service charges set forth in this Agreement, <br /> it has taken into consideration that the Claim Administrator may receive such payments, discounts <br /> � and/or other allowances during the term of this Agreement and that the service charges specified in <br /> this Agreement reflect the amount of additional consideration expected to be received by the Claim <br /> Administrator in the form of such payments,discounts or allowances. Neither the Employer nor Cov- <br /> ered Persons hereunder are entitled to receive any portion of any such payments, discounts and/or <br /> other allowances in excess of the ADP as part of any Claim Settlement or otherwise except as such <br /> items may be indirectly or directly reflected in the service charges specified in this Agreement. <br /> A. Services Rendered Out Of Claim Administrator's Service Area <br /> From time to time, Covered Persons may receive health care services outside Illinois and from <br /> a Provider which does not have a contract with the Claim Administrator for the provision of, and <br /> payment for, such health care services. Under such circumstances, the Blue Cross and Blue <br /> Shield Plan in the particular state in which the services are received(the"Host Plan")will process <br /> the Covered Person's Claim in accordance with the Host Plan's applicable contract, if any, with <br /> the particular Provider ("Host Plan Provider"). <br /> The Claim Administrator hereby informs the Employer and all Covered Persons that certain Host <br /> Plans may have contracts with Host Plan Providers under which in certain circumstances <br /> described therein,the Host Plan may receive substantial payment from Host Plan Providers with <br /> respect to services rendered to Covered Persons for which the Host Plan was obligated to pay <br /> the Host Plan Provider, or the Host Plan may pay Host Plan Providers less than their billed <br /> charges for services, by discounts or otherwise, or may receive from Host Plan Providers other <br /> allowances under the Host Plan's contracts with them.The Employer acknowledges that in nego- <br /> tiating the premiums and/or service charges set forth in this Agreement, it has taken into account <br /> that, among other things, the Host Plan may receive such payments, discounts and/or other <br /> allowances during the term of this agreement with the Claim Administrator. <br /> � Coinsurance amounts, deductibles, out-of-pocket maximums and/or any benefit maximums un- <br /> der this Agreement will be calculated on the basis of the Host Plan Provider's Eligible Charge <br /> - 10 - <br />
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