Title
Resolution to Approve the Amendment and Renewal of the City's Contract with Blue Cross Blue Shield of Michigan to Provide Administrative Claims Processing Services and Related Stop-Loss Insurance Coverage Through BCS Insurance Company for the City's Health Care Plan on Behalf of Employees and Retirees and Their Dependents, and to Authorize the City Administrator to Execute the Necessary Documentation ($1,871,851.00)
Memorandum
The attached Resolution authorizes the City Administrator to execute the amendment and renewal of the City's contract for administrative claims processing services for the City's health care plan and purchase of a related stop-loss policy. Blue Cross Blue Shield of Michigan will continue to provide administrative claims processing services for the City's health plan for the period of January 1, 2020 through December 31, 2020. The stop-loss policy will be provided through a subsidiary of Blue Cross Blue Shield of Michigan - BCS Insurance Company (BCS). Previously, such insurance was underwritten by Blue Cross Blue Shield, however such insurance encompassed only medical claims. By engaging BCS to provide these services, Rx claims will now also be included in the stop loss coverage therefore limiting the liability for those high dollar claims as well for the City. The annual estimated cost for the stop-loss insurance provided by BCS is $705,983.00.
Public Act 106, requires the City to competitively bid our medical, dental, and vision coverage every three years. MMA, our healthcare advisor, conducts the bidding on our behalf and recommends a service provider. We completed this bidding process in the fall of 2019 for plan year 2020. BCBSM remains the best option for medical claims processing. As for stop loss insurance, MMA bids this annually. This year we are switching providers from BCBSM to BCS because BCS was able to include prescription costs in our stop loss coverage at a competitive rate.
Budget/Fiscal Impact: The nec...
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