Title
Resolution to Approve the Renewal of the City's Contract with Blue Cross Blue Shield of Michigan to Provide Administrative Claims Processing Services and Stop-Loss Coverage 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 ($1,905,892.00)
Memorandum
The attached Resolution authorizes the execution of the renewal of the City's contract for administrative claims processing services for the City's health care plan and 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, 2019 through December 31, 2019.
Budget/Fiscal Impact: The necessary funds were appropriated as part of the FY19 approved budget through June 30, 2019. Required funding for the portion of the contract term from July 1, 2019 through December 31, 2019 will be budgeted in the FY20 budget. The estimated annual cost for the calendar year of this employee benefit is $1,732,629.
The Blue Cross Blue Shield Community Blue Preferred Provider Network (or its equivalent) is provided for under our current labor agreements and our employee benefits program. This contract continues services now in effect.
The overall costs for the program will fluctuate monthly depending both on the number of employees and retirees enrolled in the program during any given month, and the amount of incurred claims actually paid during any given month.
The benefit coverage levels will remain the same for the FY19 and FY20 as currently underwritten.
...Staff
Prepared by: Jessica Hull, Employee Benefits Supervisor
Reviewed by: Robyn Wilkerson, Director of Human Resources & Labor Relations
Approved by: Howard Lazarus, City Administrator
...Body
Whereas, The City provides health care coverage to City employees, their eligible dependents, and retirees and their elig...
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