City of Ann Arbor - File #: 23-0338

• File #: 23-0338
• Version: 2
• Name: 3/6/23 Resolution to Approve the Renewal of the City’s Contract with Blue Cross Blue Shield of Michigan (BCBSM) 2023
• Type: Resolution
• Status: Passed
• File created: 3/6/2023
• In control: City Council
• On agenda: 3/6/2023
• Final action: 3/6/2023
• Enactment date: 3/6/2023
• Enactment #: R-23-072
• 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 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 ($2,042,855)

Date	Ver.	Action By	Action	Result
3/6/2023	2	City Council	Approved	Pass

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 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 ($2,042,855)
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, 2023 through December 31, 2023. The annual estimated cost for claims administration provided by Blue Cross Blue Shield of Michigan is $1,383,965. 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, 2023
through December 31, 2023. The annual estimated cost for the stop-loss insurance provided by BCS is $658,890. This resolution and amounts do not include the pharmacy benefit management services being provided by BCBSM / OptumRx, totaling $8,964,668, which was previously approved by Council on October 17, 2022; see resolution R-22-345.

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 2023, BCS remains the best option for stop loss coverage.

Budget/Fiscal Impact: The necessary funds were ap...