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TO: Mayor Richard C. Irvin
FROM: Alisia Lewis, Chief Human Resources Officer
DATE: August 16, 2021
SUBJECT:
A Resolution Authorizing Blue Cross Blue Shield Blue Advantage HMO (BCBS) for Group Health Care Services for the period of January 1, 2022 through December 31, 2022.
PURPOSE:
To establish the 2022 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 2022 renewal rates equaling a 0% increase over 2021 rates.
DISCUSSION:
The City evaluated Aetna, Blue Cross Blue Shield of Illinois, CIGNA, and United Healthcare in the Spring and Summer of 2021 for the 2022 plan year. The evaluation highlighted that Aetna, Blue Cross, CIGNA and UHC all have comparable PPO networks. Aetna and UHC have comparable HMO networks. CIGNA launched a new HMO product as of April 1, 2019 with pricing favorable versus BCBSIL. The City is intrigued by CIGNA’s HMO network and pricing, however, AssuredPartners (City consultant) was able to negotiate on behalf of the City to achieve the following results:
BCBSIL initial HMO renewal increase was 5%.
Final Renewal is 0% rate increase resulting in a “no change” for two years.
The City recommends renewing the HMO with BCBSIL.
Attached are the 2021 and 2022 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, 2022 through December 31, 2022.
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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 2022 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 2022. The HMO rates attached as Exhibit "A" represents a 0% increase.