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 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 ($2,165,695)
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 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, 2022 through December 31, 2022. The annual estimated cost for claims administration provided by Blue Cross Blue Shield of Michigan is $1,248,214. 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, 2022 through December 31, 2022. The annual estimated cost for the stop-loss insurance provided by BCS is $917,481.
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 2020. BCBS remained the best option for medical claims processing. As for stop loss insurance, MMA bids this annually. In 2020 we switched providers from BCBS to BCS because BCS was able to include prescription costs in our stop loss coverage at a competitive rate. For plan year 2022, BCS remains the best option for stop loss coverage.
Budget/Fiscal Impact: The necessary funds were appropriated as part of the FY22 approved Risk Fund budget through June 30, 2022. Required f...
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