CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the recommendation by GCG Financial to award Medical Claim Administration renewal to Blue Cross Blue Shield of Illinois (BCBSIL) for an amount not to exceed $2,566,776 in fixed costs, based on anticipated 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:
* 21-1307: Dental insurance renewal award to Delta Dental
* 21-1308: Specific Stop-loss Insurance Policy renewal award to Symetra Insurance Company
* 21-1309: Pharmaceutical Benefits Management Services renewal award to CVS-Caremark
In April 2014, the City Council approved GCG Financial (GCG) as the City's benefits broker. At its meeting on September 21, 2021, the Council approved a new award to GCG to continue as broker for the next three years. One of the responsibilities of GCG is to price, negotiate, and recommend the renewal of medical insurance, including excess stop-loss insurance, pharmaceutical management and dental insurance contracts for the City.
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 - High Deductible Health Plan (HDHP) 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.
The City's medical expenses (since 2014) and pharmaceutical c...
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