CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the recommendation by GCG Financial/Alera Group to award Medical Claim Administration renewal to Blue Cross Blue Shield of Illinois (BCBSIL) for an amount not to exceed $2,591,229.28 in fixed costs, based on HMO and PPO enrollment, for a one-year term (Item 1 of 4)
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DEPARTMENT: Human Resources
SUBMITTED BY: James Sheehan, 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 approval:
* 22-1208: Stop Loss Reinsurance to Sun Life Assurance Company of Canada (Sun Life)
* 22-1209: Pharmaceutical Services Administration and Services to CVS/Caremark - Employers Health - VPS (CVS/Caremark)
* 22-1210: Group Life/Accidental Death and Dismemberment to VOYA
On April 15, 2014, City Council approved GCG Financial/Alera Group (GCG) as the City's benefits broker and on September 21, 2021, City Council again approved GCG to continue as broker for the next three years. One of the duties of GCG is to price, negotiate, and recommend the renewal of medical insurance, pharmaceutical management, and life insurance contracts for the City. GCG also makes recommendations on dental coverage and negotiated a multi-year contract with Delta Dental last year and approved by City Council. The Delta Dental contract will continue for 2023, as approved.
The City is a self-insured organization and responsible for all medical, dental and pharmaceutical expenses for each plan. As a self-insured organization, the City contracts for 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 excess liabilities, the City maintains individual stop-l...
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