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TO: Mayor Richard C. Irvin
FROM: Alisia Lewis, Director of Human Resources
DATE: August 23, 2019
SUBJECT:
A Resolution Authorizing Blue Cross Blue Shield Blue Advantage HMO (BCBS) for Group Health Care Services for Period of January 1, 2019 through December 31, 2019.
PURPOSE:
To establish the 2019 rates for HMO BCBS Blue Advantage medical insurance.
BACKGROUND:
The City of Aurora provides a fully insured HMO for active employees through Blue Cross Blue Shield of Illinois (BCBSIL does not allow retirees to remain on the HMO). Renewal rates are set by BCBS and the required premium is based on the sum total of projected new paid claims, physician service fees, pooling charge, risk and administration s determined by BCBS.
The city received 2018 renewal rates equaling a 2.25% increase over 2017 rates.
DISCUSSION:
The city evaluated Aetna, Blue Cross Blue Shield of Illinois, CIGNA, and United Healthcare in the Spring/Summer of 2018 for the 2019 plan year. The evaluation highlighted that Aetna, Blue Cross and CIGNA have comparable networks and costs. The City interviewed all three providers and determined that Blue Cross Blue Shield was the best choice to serve as the city's HMO provider.
The 2019 HMO plan through Blue Cross Blue Shield of Illinois had an initial renewal of -2.4%. however after additional negotiations, the renewal has been reduced further to a -3.2% decrease.
Attached are the 2019 rates
IMPACT STATEMENT:
No impact
RECOMMENDATIONS:
Place on the Finance Committee calendar for approval to City Council
cc: Alderman O’Connor, Chairman
Alderman Mesiacos
Alderman Bugg
Alderman Mervine, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Establishing Blue Cross Blue Shield Blue Advantage HMO (BCBS) for Group Health Care Services for Period January 1, 2019 through December 31, 2019.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, (Blue Cross Blue Shield Blue Advantage HMO (BCBS) is a federally qualified Health Maintenance Organization with medical centers located in Aurora and the surrounding area; and)
WHEREAS, the 2019 proposed City budget provides $7,406,166.00 for this item in employee health account number 602-0000-410.28-05:
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: is hereby authorized to execute the BCBS Contract for 2019. The HMO rates attached as Exhibit "A" represents a -3.2% decrease from last year.