Title
Resolution to Approve the Renewal of the City's Contract with Blue Cross Blue Shield of Michigan (BCBSM) to provide administrative claims processing services for Group Medical and Group Pharmacy benefits, and related Stop-Loss Insurance 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 ($2,050,146.00)
Memorandum
The attached Resolution authorizes the City Administrator to execute the renewal of the City's contract for administrative claims processing services for the City's group health care plan, group pharmacy plan, and purchase of a related stop-loss insurance 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, 2024 through December 31, 2024. The annual estimated cost for claims administration provided by Blue Cross Blue Shield of Michigan is $1,343,827.00, which includes the administrative costs associated with the pharmacy benefit, which was transitioned to Blue Cross Blue Shield of Michigan and their pharmacy benefit management partner, Optum, as of January 1, 2023. BCS Insurance Company, a subsidiary of Blue Cross Blue Shield of Michigan, will continue to provide stop-loss insurance for the period of January 1, 2024 through December 31, 2024. The annual estimated cost for the stop-loss insurance provided by BCS is $706,319.00.
Public Act 106, requires the City to competitively bid our medical, dental and vision coverage every three years. Marsh & McLennan Agency LLC ("MMA"), our healthcare benefits advisor, conducts the bidding on our behalf and recommends a service provider. We completed this bidding process for plan year 2023. BCBS remained the best option for medical claims processing. As for stop loss insurance, MMA bids this annually. For plan year 2024, BCS remains the best option ...
Click here for full text