CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the Recommendation by GCG Financial to Award the Medical Insurance renewal to Blue Cross Blue Shield of Illinois (BCBSIL) for a one-year term and for an amount not to exceed $2,750,860. (Item 1 of 3)
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DEPARTMENT: Human Resources
SUBMITTED BY: James Sheehan, Director of Human Resources
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Other items on the City Council agenda related to this item:
* 17-666 Approval of a contract with CVS-Caremark for pharmaceutical management services
* 17-667 Approval of a contract with OPTUM-Unimerica Insurance Company for a specific stop-loss insurance policy
On April 15, 2014, the City Council approved GCG Financial (GCG) as the City's benefits broker for a three year period beginning May 1, 2014. On April 18, 2017, the City Council approved a two year contract extension for GCG Financial to continue as the benefits partner to the City. One of the duties of GCG is to price, recommend and negotiate the renewal of medical insurance contracts for the City of Naperville.
The City of Naperville is self-insured, therefore for the purposes of medical insurance, the City contracts with insurance providers to administer the program components and the City funds the actual claim expenses. The City currently has individual stop loss reinsurance that goes into effect and limits the liability of the City in the event of an individual catastrophic claim in excess of $200,000 for the HMO product and $300,000 for the PPO products.
The City offers four medical plans to our plan participants, including a Health Maintenance Organization (HMO), a traditional Preferred Provider Organization (PPO), a PPO with a consumer-driven health plan (CDHP) and a health reimbursement account (HRA) and a PPO with a high deductible health plan (HDHP) and a health savings account (HSA).
Over the past several years, the City has implemented significant changes to the medical insurance program,...
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