Group Insurance Solutionss BC/BS 2001 AUGUST 7,2001 -REGULAR MEETING-PAGE 6 OF 9 195
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VII. NEW BUSINESS.
A. Motion to approve LaRue Contract/Increase of Fees- City Council Member Oliver moved to approve amendment to the Current LaRue Contract for an increase in fees effective
Administrator(Exhibit 4). October 1,2001;seconded by Council Member Williams.
As explained in Exhibit Four,the increase is from two thousand,one hundred twenty-five dollar s($2,125.00)per month
based on twenty-five hours of work to two thousand,five hundred dollars($2,500.00)per month based on thirty hours
of work.Administrator Veach recommended the increase and noted that Staff does rely on the Planning Agency heavily
and has always received a high level of professionalism from Mr.LaRue and his employees.Mayor Pro-Tern Watford
and Council Member Oliver also noted what a good job LaRue's firm did for the City.
VOTE
KIRK-ABSENT
CHANDLER-YEA
OLIVER-YEA
WATFORD-YEA
WILLIAMS-YEA
MOTION CARRIED.
246. B. Motion to award Insurance Bid- City Administrator(Exhibit 5).
There were two presentations to the Council from firms who submitted a Health and Life Insurance Bid.The first was
given by Mr.Scott Harris representing Group Insurance Solutions,Inc.The other by Michael Rosenberg representing
Arthur J.Gallagher/Public Risk Management (PRM). .
Council Member Oliver moved to award a Health and Life Insurance Bid to Group Insurance Solutions, Inc.,
(Blue CrosslBlue Shield Care Manager A16)for one year; seconded by Council Member Chandler.
This is the City's current plan with a 17.7 percent increase.This company was the lowest bidder.This will be the last
year this plan will be offered to the City,which allows employees'the option of traditional(PPO)insurance or the HMO
plan.
VOTE
i KIRK-ABSENT
CHANDLER-YEA
OLIVER-YEA
WATFORD-YEA
WILLIAMS-YEA
MOTION CARRIED.
"Ail Newt :.._a..�•.._�-- EMPLOYLHi A PPL.ILA1101' ,
(True Group App.)
❑ New Business 13 9enewal Business Other Group rt(BCBSF): (HMO) 90206
I.APPLICANT lNFORMA1TON
A. Name of Group: CITY OFOKEECHOBEE Cily/(BCBSF): DDI,CC?,Rat
Nature of Business Executive offices SIC Code: 9111 _Dive(HMO):
leading Address 65 SE 3RD AVE OKEECHOSEE,FL 34974-2tiQ3
Ust below Subsidiary or Affiliated Companies whose employees are to be elitilbie and included wrth this application.
Name: Address
B. Applicant hereby applies tot coverage/membership through Blue Cross and Blue Shield ol Florida.Inc.18CBSF1 and/or Health Options,Inc.(HCNr Grew;
Contract(herein referred to as the Contract).Upon acceptance of this application by BCBSF and/or HON,it tvilrt:ecome part of the Contract Issued to ter
applicant named above.
C. The Contract benefits do not cover any service or supply to diagnose or treat any Condition resulting from or ir,connection with a Insurer's job or
employment(e.g.,any service or supply which is covered by Worker's Compensation Insurance) Bene!lts will not be provided under the Contract to an
individual who elects and Is statutorily authorized for exemption from Workers Compensation coverage. •
D. Workers Compensation carrier is KLAIST&COMPANY
Prior Carrier ls: PRINCIPAL FINANCIAL GROUP (HMO)
>• .rroa+
111171FICTIVE DATE I ELIGIBILITY INFORMATION
A. Effective Date of this Contract stall be ' 09/01/2002 .This Contract may be terminated by the applicant or BCBSFMOI by giving at least 45 d
prior written notice to the other party.
B. Only active eligible employees who regularly work a minimum of 30 hours each week and their eligible dependents,shall be ehg.b!e for coverage
won the Effective Date of this Contract.
C. Specify classification of enrollees for whom coverage is being requested,it otter than eligible employees as described in B above.
D. New eligible employees may be oovered attar FIRST OF MONTH AFTER DATE OF HIRE of employment,so long at
eligible employee submits an application to BCBSF/H01 within 30 days of the data the individual first meets the applicable eligibility requirements.
E. At toast 75 %of the eligible employees and 60 %of the eligible dependents Most he enrolled under Me Contract on the Effective
Dale and throughout the term of the Contract. • Multi-Option Setif
7081 Ineligible Total Number Percent
F. Enrollment data Employees Employee.' Eligible Enrolled --t Enrolled FPO NNIO
j
Employees 5$ 1 54 64 100r ! 0 1 S4 1----7
Employer Contribution.EMP: 100 % DEP: 25 'Please provide a Ifst of nerne(s)and reason(s)for Ineligible employees and Capone
G. BCBSF/H01 shall nave the tight to audit the applicant's payroll records at any time to confirm eligibility for coverage;applicant agrees to furnish any suer
records upon request.
N.HEALTH PLAN SUM MY INFORMATION *fleet the a• •• late box a
BLUE CROSS AND BLUE SHIELD OF FLORID INC. Standard ■ Non Standard III Custom HEALTH OPTIONS
A Health Care Benefits MP NDATED BENEFIT OFFERINGS •2 Standard Non-Star
B.Benefits: Co Ins.: %PPC °4 Non PPC IOpti<nal)Applicant has been advised of the 0 Custom
Deductible Per Person Per Calendar Year foliowee beneht°Hennes us r minuted'by f1.Health Options Plan it
Deductible Family Aggregate Per Calendar Year rtie Fedrrel ar'd'or State Law.Applicer:'s Out-Care NFQ LO Grp Plan 4
Copay:Per Crlf Ice vise 'eeislon to accept cr deciine prase tenants e,Rx StueCer•e Its S/1513•
- Per Adm.Deductible For All Non•PPC Hospitals a indicates bolovr. 5 Generic 15 Braid 50 NonPre
- Maximum Out of Pncket Accept Decline ConseceptvrAll
❑ al Mental b Nervous Marcie( C.Vision ❑ Yes 0 No
T Program: Copay: Generic Brand NonPreferre ❑ ❑ A!cohoi a Dig Deoendcruy Pty-axlsnNQ:
Contraceptives: 0 ❑ Mammograms Waiver 01
Oaduclible&Gouauranee
❑ ® Enteral Formulas
D.Dental: 0 Standard ❑ Non-Standard With Orthodontics ❑ Yes (El No OentalEnrollment:
E.Other;
1 IV.RATE INFORMATION
A. Premiums/Prepayment tee are payable morality on or before tee 1j,r2
due data which will be determined:
Regular Billing -Employee applications should be submitted Employee __S_� ____
thIrry 430)days prior to proposed effective date. Employee I Spouse 1t42,02 _
Employee J Cnild(rern 1536.45 _
B. Funding Employee I Family (],.n}¢ _
Arrangements:
-
HMO: Discount Other __ _ ..___,,
Dental Comments:
The rates established for this Contract will not be changed tot the first twelve;12)months 1ellowing the Initial effective date of Coverage.However
ECBSFMOI may change the rates which ars to be effective after this Initial twelve 112}month period of coverage by providing notice to tee empioye
such cttan•ad rates ton -five 45 da s •nor to their eifiective date.
•
V.APPLICANT RESPONSIBILITIES
A. The applicant shalt 1)Notify each enrollee to the benefits selected by the applicant,their effective date,and flee lennrnatlon date or coverage fin this r
eppllcaM acts as the agent of the enrollee,and in no event shall the appicant be deemed on agent of BCBSFOIOI for this or any other purpose.not st
BCBSFiHOI be responsible for such notification to retirees). 2)Deliver to covered enrollees identification carde and certificates ce coverage Iurnist-od t
BCBSFIHOI.3)Notify BCBSF/H01 promptly of any changes In the eligibility ol enrollees covered under this Agreement 4)List any absentees at the tb
Initial enrollment on the appropriate BCBSFMOI form.Applications Iran absentees will be accepted at BCBSrMOI Corporate Heaoquaners no lacer tt
thirty(30)days from the group's effective Dale 5)Collect enrollee contribution,?1 required,and remit premi tee payment/prepayment lees to BCBSF.'Ht
specified above in Section IV.Rates.
B. Applicant hereby establishes an Employee Welfare Benefit Plan for fee purpose of providing for Its employees or their beneficieriea medical,surgical,
hospital care,or benefits In the event of sickness.
C. Any person who knowingly and with intent to injure,defraud,or deceive any insurer flies a statement of clean or an application contem,ng any false,
incom•eta or mi. ,.• , information Is•rib of a felon of the third d-•ree.
Pi.FINAL PREMIUMS BENEFIT$ .!1a 34i,E DATES ARE SUBJECT TO APPROY BY BCBSF CORPORATE NEADOUAR.TER3
issuance of the Contract by -CBSF/HOI ,II be deemed piano- .1 j'••tication, /
Dale ignatur of .•1 ant rent i TAN Name a Tile 1
Sent By: Group Ins trance Solutions, Inc.; 561 747 '3524; ' Jul-30-02 8:38; Page 414
ENROLLMENT SUMMARY
CO B__ COMPLIANCE(CHECK APPROPRIATE BOX)
Our company employed 20 or more full and/or part-time employees*during the previous calendar year and is subject to federal COBRA.All full
and part-time common law employees of an employer are considered in determining COBRA compliance. All full time employees are counted as
one employee and each part-time employee is counted as a fraction of an employee.
❑ Out company employed fewer than 20 full andtor pan-time employees*during the previous calendar year and is subject to the Honda Health
Insurance Coverage Continuation Act("FHICCA").All full and part-time common law employees of an employer are considered in determining
COBRA compliance. All full time employees arc counted as one employee and each part-time employee is counted as a fraction of an employee.
For COBRA and FHICCA purposes,self-employed individuals, independent contractors and non-employee directors are not counted.
MFDI .ARE SECONDARY PAYER COMPLIANCE(CHECK APPROPRIATE BOX)
If o area single employer plan:
es ❑No Our company employed 20 or more employees** each working day in 20 or more calendar weeks(does not have to t'e consecutive
weeks)during the current or preceding calendar year.
if you are a single employer,multiple employer or a multi-employer plan:
❑Yes E No Our company employed 100 or more employees**on 50 percent or more of the business days during the preceding calendar year.
If you are a rrudtrple employer or a multi-employer plan:
❑Yes ❑No All employers in our Group Health Plan(GHP)employed 20 or more employees** for 20 or more consecutive weeks in either the
current or preceding calendar year.
❑Yes O No At least one of the employers in our GHP employed 20 or more employees**•fur 20 or more consecutive weeks in either the
current or preceding calendar year.
❑' es ❑No All employers in our GI IP employed fewer than 20 employees** for 20 or more consecutive weeks in either the
current or preceding calendar year.
** "Employees"includes all full and/or part time employees
*E e3 r'g r s r X r r ' t 4 r -',4 r: ' x! L" A b s xY ?c t"s si
�.±)�.. ?5.4 .».� �+.,i. t .r.' .�a' -,: .f «; n-c..mv.a ',�: ai S ,ti` 4 ��
L Group Name CITY OF OKEECHOBEE 2. Group Number_ 90206
i. Group Sales Rep/Agent MARTBETH CROKHOWSKY (T06) 1 4. Effective Date 8/1/21k4-----
_____
5. Employer Contribution Toward Employees Premium (must be at least 50%for 1-50,75%for 51+)
....,.t.., i ,,...'. ',8d v.. ..liSf.1.l ,,. ' ..L .; .l...,.....,w,:._..- .»...,...,., _ ... . . ., ,'4pk. ,.[..t..,. .r 2'!r .. al
I. TOTAL EMPLOYEES ON PAYROLL '
A. "total Part l ime Employee(s) a
al
B. Total New Employee(s)(In Waiting Period) _
C. 'Total Employee(s)Not Actively At Work _ AIMI
1. Tt_)TAL INELIGIBLE EMPLOYEES(A THROUGH C) _j
1. TOTAL ELIGIBLE EMPLOYEES(I Minus 2)(DETERMINES GROUP SIZE&PRODUCT) -'a I
D. Total Employees with Other Coverage - - —
I. TOTAL ELIGIBLE FOR PARTICIPATION(? Minus D)
E. '!'oral Refusals If
F. Total Absentee eAl
5. TOTAL.ENROLLED
i. EMPLOYEE PARTICIPATION (5 divided by 4) (75%IS REQUIRED)Li NC.-f.. .e S -.e�-1 e'e e s) /1/(4
it is important for the employer to have each employee who chooses not to participate,complete the refusal purr on of the
application and retains the refusal form as part of the employee's record. (Use separate piece of paper if necessary)
REASON CODE _ l - REASON CODE
EMPLOYEE NAME (A through F) EMPLOYEE NAME (A through F) __I
Pai.P V.y, Ma-i-J14-(-0/9—t/ ../7-- E p, i 1,-- 1 ,
I
0 4IF 4 -i r- -36-��
G , , (fiver's Signature Title Date
Blue Cross and Blue Shield of Florida.Inc and Heath Options,Inc are Independent Licensees a the Blue Cross end Blue Shied Association
823 SR(Rev 0697)
Sent By: Group Insurance Solutions, Inc. ; 561 747'3524; Jul-30-02 8:37; Page 3/4
re , / 01 Florida
e Health Options.
Option,nne rs e.Cm=wit rhut 55510
nr arar VnfMrvYn'L cenlpY9 UMC QLN C}Ca
on,S pia n 5r.w Macaem
BineCare Non-Federally Qualified
IN WITNESS WHEREOF, each of the parties to this Agreement, through their duly authorized representative hereby
acknowledges that they have read and understand this Agreement, and the below listed endorsement/amendments,and agree
to be bound by their terms.
Master Policy: BlueCare for Large Groups(Non-Federally Qualified)
Grievance Form (pink fold out) 16297 R0399 SR
Grievance Appeal Form(green told out) 16298 R0399 SR
BlueCare Rx HMO Pharmacy Program S5/$15/$30 86034 R0599 SR
11 -Contraceptives(with Rx Only) 86027 R0401 SR
Optional Endorsement/Amendment Title Form Number
Group: CI ' OKEECHOBEE
By: 41.%17' Date /_DC -p
Name: 6 111 e S . rl f 1^ ---
Title: Al o-- V O r
HEALTH OPTIONS,INC.
By: Date
•
Name: Ken Sellers
Title: Regional VP
* JULY 16,2002-REGULAR MEETING-PAGE 4 OF 9
I AGENDA I COUNCIL ACTION-DISCUSSION-VOTE
CLOSE PUBLIC HEARING -Mayor. MAYOR KIRK CLOSED THE PUBLIC HEARING AT 6:15 P.M.
VIII. UNFINISHED BUSINESS.
A.1.a) Motion to remove from the table, a motion to adopt proposed Council Member Oliver moved to remove from the table,a motion to adopt proposed Resolution No.02-8 authorizing
Resolution No. 02-8 authorizing the execution of a State Highway the execution of a State Highway Lighting, Maintenance and Compensation Agreement with the Department of
Lighting, Maintenance and Compensation Agreement with the Transportation; seconded by Council Member Chandler.
Department of Transportation-City Administrator(Exhibit 2).
b)Vote on motion to remove from the table. VOTE
KIRK.-YEA
CHANDLER-YEA
OLIVER-YEA
WATFORD-YEA
WILLIAMS-YEA
MOTION CARRIED.
2. a) Discussion regarding motion to adopt proposed Resolution No. 02-8 There was a brief discussion between the Council and the Staff,regarding the liability of entering into this agreement
(Motion made by Council Member Watford, second by Council City Attorney Cook stated that the letter in Exhibit Two was enough to bind Public Risk Management to cover the City
Member Oliver). (this is the City's Property and Casualty Insurance Company).
b)Vote on motion. VOTE
KIRK•YEA
CHANDLER•YEA
OLIVER-YEA
WATFORD-YEA
WILLIAMS-YEA
MOTION CARRIED.
IX. NEW BUSINESS.
fotion to award a Health Insurance Bid -City Administrator Mayor Kirk asked if there were any representatives from insurance companies that bid on the health insurance. There
(Exhibit 3). were no representatives from Arthur J.Gallagher&Company. Mary Beth Grokhowsky was present,a representative
from Blue Cross Blue Shield.
JULY 16,2002-REGULAR MEETING-PAGE 5 OF 9
AGENDA COUNCIL ACTION•DISCUSSION-VOTE
IX. NEW BUSINESS CONTINUED
ip Motion to award a Health Insurance Bid continued. Council Member Watford inquired lithe proposal from Arthur J. Gallagher and Company was a pool. Staff answered
by stating that in fact it was a pool,and there were additional risks because of this. Mayor Kirk stated that the City was
looking at hefty increases. There was a lengthy discussion between the Council and Ms. Grokhowsky regarding the
prices of prescriptions, and the options that were available when purchasing prescriptions. The difference in the
current plan and what is being proposed. Employees will also be able to switch from the HMO Plan and PPO Plan
once a year during open enrollment
Another major concern was the fact that the current insurance plan ends July 31, 2002. This does not give sufficient
time to have all the City employee's complete the necessary paperwork,send it to Blue Cross Blue Shield and send
the appropriate cards to the employee's. Therefore the City's insurance representative, Scott Harris was able to get
an extension of the existing contract, at the same rates until August 31, 2002.
Council Member Oliver moved to award a Health Insurance Bid to Blue Cross Blue Shield option five plan, up to the
HMO amount seconded by Council Member Chandler. Motion and second was withdrawn.
Council Member Oliver moved to award a Health Insurance Bid to Blue Cross Blue Shield, HMO Plan 5/Blue
Choice PPO Plan 317,that the City will pay up to the HMO amount,and the seventy dollars($70.00)toward the
employees family and or spouse; seconded by Council Member Chandler.
Employee's will have the option of choosing the HMO Plan or the PPO Plan, However,the City will only pay up to
the HMO Plan. If an employee chooses the PPO Plan they will have to pay the difference between the two plans.
VOTE
KIRK-YEA
CHANDLER•YEA
OLIVER•YEA
WATFORD•YEA
WILLIAMS•YEA
MOTION CARRIED.
City Administrator Veach asked Ms.Grokhowsky if elected officials and the City Attorney would be covered under the
plan. She answered that current elected officials would be covered. If the City Attorney is an employee he would be
covered. Elected Officials that are not re-elected would not be eligible.
GROUP INSURANCE
fillOdart:00a,
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City of Okeechobee AV'v- t a�r
ust 1, 2002 Blue
Q ku g Cross/ Blue Shield
Renewal Comparison
Prepared by
Scott Harris
July, 2002
18230 RIVER OAKS DRIVE • JUPITER,FL 33458 • PHONE 561-747-5636 • FAX 561-747-3524 • 800-972-0963
Jam, lilUBlZOSS IiIUCJIIIeIU 770NorthpomtParkway,Suite200
era
pop v�/ of Florida West Palm Beach, FL 33407
An Independent Licensee of the
Blue Cross and Blue She'd Association
June 10,2002
Anniversary Date: 08/01/2002
JAMES KIRK Group Number: 90206
CITY OF OKEECHOBEE
55 SE 3RD AVE
OKEECHOBEE, FL 34974-2903 Product: BlueCare NFQ LG Grp Plan 1 w/
BlueCare Rx 5/15/30C
Dear JAMES KIRK:
Thank you for being part of the one million plus Florida residents covered either by Blue Cross and Blue Shield of Florida, Inc. or Health Options,
Inc. We look forward to continuing to provide your business with quality health care coverage.
Recently, you were notified through an "Important Notice" mailing, in compliance with 627.6571(3)(a), Florida Statutes, that your group health
insurance policy form is being discontinued and replaced with a new BlueCare or BlueChoice group health insurance policy form at the time of your
group's renewal. Please refer to the attached benefit summary for further details on the effect of this modification.
We have reviewed the factors that affect the cost of your group health benefits program. The new group rates noted on the enclosed documents are
subject to Florida Department of Insurance approval and our policyholders will not be billed for these proposed rates until the Florida Department of
Insurance has issued approval.
Employee Only Employee/Spouse Employee/Child Employee/Family
HMO $388.79 $838.50 $698.14 $1,147.85
The rates assume that your group does not qualify as a Small Group according to Section 627.6699, Florida Statutes. In the event that your group
has 50 or fewer eligible employees,(employees who work 25 hours or more per week),please contact our office immediately.
To continue group health benefits and to provide for a smooth flow of claims processing for your covered employees and their covered
dependents without interruption,please(1)complete and sign an Enrollment Summary; (2)provide a copy of your most recent Employer's
Quarterly Tax Report [UCT6]; then (3) return all of the above information requested in this notice by the 15th of the month prior to your
renewal date.
Upon receipt of the requested referenced business activity documentation,a True Group Application for the plan shown above,or a new
plan if you decide to change,will need to be completed and signed 15 days prior to your group's anniversary date.;Timely receipt of the
requested information is necessary to ensure a smooth transition. If you do not return a signed True Group Application along with the
above referenced business activity documentation prior to your group's anniversary date,your coverage will end as of your scheduled
anniversary date.
Under the Health Insurance Portability and Accountability Act (HIPAA)your group is required to hold an annual open enrollment. Your group's
open enrollment period will begin 30 days prior to your anniversary date. Eligible employees and their eligible dependents that have satisfied their
waiting period can now enroll for coverage.
We would like to advise you that we can make available to you the following additional products:
Dental Voluntary-Life, STD,LTD
Short Term Disability Premium Conversion plan(Sec. 125)
Long Term Disability Flexible Spending Accounts(FSAs)
Basic Life 401K
Thank you for the opportunity to serve you and your employees. We value your company's business and look forward,to working with you in the
future.
Sincerely,
Blue Cross Blue Shield of Florida
MARIBETH GROKHOWSKY
Major Account Renewal Sales
Cc: GROUP INSURANCE SOLUTIONS INC-0714
GBULGMand
e"
GROUP INSURANCE
City of Okeechobee Blue Cross Blue Shield Benefit Comparison
Present Plan Renewal Alternate 1 Renewal Alternate 2
HMO Benefits/ Plan Care Manager Al 6 Blue Care HMO Plan 1 Blue Care Plan HMO 5
Lifetime Maximum Unlimited Unlimited Unlimited
PCP OV Co Pay $ 5 $ 5 $ 10
Specialist OV Co Pay $ 5 $ 5 $ 10
Hospital Co Pay $ 0 $ 0 $ 0
Emergency Room Co Pay $ 25 $ 50 $ 50
Prescription Drug Co Pays $5 gen; $10 name $5 gen; $15 pref; $30 non-pref 5/15/30
Mail Order Prescriptions NA 90 day supply for 2 co pays 90 days/ 2 co pays
Traditional Benefits AND OR OR
Network/ Plan BCBSFL Traditional A 16 BCBSFL PPO 108 BCBSFL PPO 317
Lifetime Maximum $ 1,000,000 $ 5,000,000 $ 5,000,000
Deductibles $ 300 (X3) + $ 300/admission $ 300 (X3) $ 500 (X3)
OV Co Pay (IM,FP,GP,Ped) NA NA $ 20
OV Co Pay (Specialist) NA NA NA
Mammograms 100 %, no deductible 100 %, no deductible 100 %, no deductible
Adult Health Screening Not Covered Not Covered $150/year benefit
Par Co Insurance 80 % 80 % 80 %
Non Par Co Insurance 80 % 70 % 60 %
Co Ins Out of Pocket Limit $2,000; $6,000/ family $2,000; $6,000/family $2,000; $6,000/ family
Prescription Drug Co Pays $5 gen; $10 brand 5/15/30 10/25/40
Therapy Maximum # visits limits, no $ limits $ 1,000/cal year $ 2,500/cal year
GROUP INSURANCE
GO0(LLt[olfd. i (.
City of Okeechobee Blue Cross Blue Shield Rate Comparison
p /12 ** REVISED RENEWAL RATES **
Care Manager A16 Blue Care HMO Plan 1 Blue Care HMO Plan 5
Blue Choice PPO Plan 108 Blue Choice PPO Plan 317
Present Plan and Rates Dual Option Renewal Alternate Dual Option Renewal Alternate
Single Option HMO 1 PPO 108 HMO 5 PPO 317
Employee (49) $ 270.80 $ 304.44 $ 394.16 $ 297.09 $ 367.89
Employee/ Spouse (7) 609.10 658.00 852.67 642.00 k' 795.88
Employee/ Ch (6) 565.30 549.28 725.67 536.45 672.27
Family (2) 903.70 902.80 1,184.18 881.36 1,100.26
Annual Total (64) $ 272,789 $ 295,507 $ 384,064 $ 288,393 $ 357,990
Total Annual Cost $ Change $ 22,718 $ 111,275 $ 15,604 $ 85,201
Total Annual Cost% Change* 8.3 % 40.8 % 5.7 % 31.2 %
Annual Employer Cost** $ 204,324 $ 228,143 $ 291,665 $ 222,940 $ 273,066
Employer Cost $ Change $ 23,819 $ 87,341 $ 18,616 $ 68,742
Employer Cost% Change 11.7 % 42.7 % 9.1 % 33.6 %
* Although both plans are available, "Annual Totals" assume all employees enroll in the same plan.
** "Employer Cost" is calculated as 59 x the employee only rate + 15 dependent coverages x $70. There
are 5 retirees covered on the City's plan, but they are excluded from the "Employer Cost" calculation.
- The original Blue Cross renewal letter(attached) indicates a rate increase of 38.2 % for HMO Planl.
The reduction to 8.3 % is the result of negotiation by Group Insurance Solutions, Inc.
- The rates listed above are based on"system assumptions" of enrollment and may change based on the
actual enrollment into the HMO and PPO plans. My experience has been that the rates rarely change.
The City's decision on benefits and payroll deductions will influence the enrollment in the plans.
Typically, over 95 % of active employees choose the HMO plan.
- This proposal is based on"fully insured" funding. The City is NOT subject to assessment if the claims
experience at the City, or other Blue Cross groups is unfavorable.