CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the recommendation by Alera Group to award Sole Source Procurement 23-235, Medical Claim Administration Renewal, to Blue Cross Blue Shield of Illinois (BCBSIL) for an amount not to exceed $2,434,310.12 in fixed costs, based on HMO and PPO enrollment, and for a one-year term (Item 1 of 4)
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DEPARTMENT: Human Resources
SUBMITTED BY: Blaine Wing, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Three additional recommendations related to this item are detailed in this memorandum and presented on this agenda for City Council:
* 23-0960: Employee Assistance Program with Curalinc
* 23-1004: Specific Stop-Loss Insurance Policy with Optum, Inc.
* 23-1005: Pharmaceutical Management Services renewal with CVS-Caremark
On April 15, 2014, City Council approved GCG Financial (now Alera Group) as the City's benefits broker.
On September 21, 2021, City Council again approved Alera Group to continue as the broker for the next three years. One of the duties of Alera Group is to price, negotiate, and recommend the renewal of medical insurance, pharmaceutical management, vision, and dental insurance contracts for the City.
The City is a self-insured organization and is responsible for all medical, dental, and pharmaceutical expenses for each plan. As a self-insured organization, the City contracts for the administration of the medical insurance program, while internally funding actual claim expenses. The city offers three medical plans, including:
1. HMO: Health Maintenance Organization
2. PPO: Traditional Preferred Provider Organization
3. PPO: HDHP-High Deductible Health Plan with Health Savings Account (HSA)
To limit liabilities, the City maintains individual stop-loss reinsurance for individuals with catastrophic claims of more than $200,000 for the HMO plan and $300,000 for the PPO plans.
Since 2014, the City's medical and pharmaceutical plans outperformed national averages as set forth in the charts...
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