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TO: Mayor Richard C. Irvin
FROM: Alisia Lewis, Director of Human Resources
DATE: August 21, 2020
SUBJECT:
A Resolution Authorizing Blue Cross Blue Shield Blue Advantage HMO (BCBS) for Group Health Care Services for the period of January 1, 2021 through December 31, 2021.
PURPOSE:
To establish the 2021 rates for BCBS Blue Advantage HMO medical insurance.
BACKGROUND:
The City of Aurora provides a fully insured HMO for active employees through BCBS Blue Advantage 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 as determined by BCBS.
The City received 2021 renewal rates equaling a 0% increase over 2020 rates.
DISCUSSION:
The City evaluated Aetna, Blue Cross Blue Shield of Illinois, CIGNA, and United Healthcare in the Spring/Summer of 2020 for the 2021 plan year. Aetna and UHC have comparable HMO networks. CIGNA launched a new HMO product as of April 1, 2019 with pricing favorable versus BCBS; yet CIGNA is still in negotiations with Advocate/Dreyer to join the HMO network. Dreyer is the largest HMO provider for the City of Aurora employees thus until they join CIGNA’s HMO this is not a viable option.
BCBS initial HMO renewal increase was 3.5%. The final renewal is a 0% rate increase. In addition, the city will receive $25,000 to put towards wellness initiatives.
Attached are the 2020 and 2021 rates.
IMPACT STATEMENT:
No Impact
RECOMMENDATIONS:
Place on the Finance Committee calendar for approval to City Council.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Establishing Blue Cross Blue Shield Advantage HMO (BCBS) for Group Health Care Services for the period of January 1, 2021 through December 31, 2021.
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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 Advantage HMO (BCBS) is a federally qualified Health Maintenance Organization with medical centers located in Aurora and the surrounding area; and
WHEREAS, the 2021 proposed City budget will provide funding 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 2021. The HMO rates attached as Exhibit "A" represents a 0% increase.