Staff recommends approving a three year extension to the City’s contract with Blue Cross Blue Shield of Florida to provide administration services for the City’s self-funded group health plan.
The City of Leesburg maintains a self-funded 3-tiered Preferred Provider Organization (PPO) group health plan for its employees, dependents and retirees. The City contracts with Blue Cross Blue Shield of Florida (BCBSFL) to provide an Administration Services Only (ASO) account which includes claims administration, group health plan design, and a discounted provider network. Fees for the group health plan administration are paid on a per employee per month (pepm) basis.
The City has contracted with BCBSFL to provide group health plan administration since October 1, 2001. From October 1, 2001 to September 30, 2006, the administration fees were $75.25 pepm. Effective October 1, 2007, the City Commissioners approved a three year agreement with BCBSFL to provide administration services for $62.00 pepm. This reduction in administration fees represented an 18% reduction or $279,000 savings to the City over the three year contract.
This year, staff has been able to negotiate a three year, guaranteed no increase, renewal quote of $56.50 pepm. This quote represents an additional 9% decrease in administration fees, or a savings of $114,000 over the three year contract extension.
The proposed three year guarenteed rate extension with BCBSFL will save the City of Leesburg approximately $38,000 annually based upon current enrollment.
Department: Human Resources
Prepared by: Dann Herrin
Attachments: Yes_X___ No ______
Advertised: ____Not Required ______
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head ________
Finance Dept. ___________JB_____
Deputy C.M. ___________________
City Manager ___________________
Account No. _064-1340-519-3110___
Project No. ___________________
WF No. ______________________
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH BLUE CROSS AND BLUE SHIELD OF FLORIDA APPROVING A THREE YEAR EXTENSION TO PROVIDE ADMINISTRATION SERVICES FOR THE CITY’S SELF-FUNDED GROUP HEALTH PLAN; AND PROVIDING AN EFFECTIVE DATE
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the Mayor and City Clerk are hereby authorized to execute an agreement with Blue Cross Blue Shield of Florida whose address is 4800 Deerwood Campus Parkway, Jacksonville Florida 32246, for a three year extension to provide administrative services for the City’s self-funded group health plan.
THAT this resolution shall become effective immediately.
PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the 10th day of August 2009