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 an amount not to exceed $2,256,464 in fixed costs, based on enrollment, for a one-year term (Item 1 of 3)
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DEPARTMENT: Human Resources
SUBMITTED BY: James Sheehan, Human Resources Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Two additional recommendations related to this item are detailed in this memorandum and presented on this agenda for City Council approval:
* 20-881: Pharmaceutical Management Services renewal with CVS-Caremark
* 20-882: Specific Stop-loss Insurance Policy with Symetra Insurance Company
On April 15, 2014, City Council approved GCG Financial (GCG) as the City's benefits broker. One of the duties of GCG is to price, negotiate, and recommend the renewal of medical insurance and pharmaceutical management contracts for the City.
The City is a self-insured organization and responsible for all medical 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 a 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 below:
Medical History (Per Employee Per Month - PEPM)
Gross Prescription Drug History (PEPM)
Figures do not reflect prescription drug rebates from carrier.
The City implemented significant changes in recent years to the healthcare pro...
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