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TO: Mayor Thomas J. Weisner
FROM: Alisia Lewis, Director of Human Resources
DATE: September 9, 2016
SUBJECT:
A Resolution Authorizing Blue Cross Blue Shield Blue Advantage HMO (BCBS) for Group Health Care Services for Period of January 1, 2017 through December 31, 2017.
PURPOSE:
To establish the 2017 rates for HMO BCBS Blue Advantage medical insurance.
BACKGROUND:
The city received 2016 renewal rates equaling a 2.0% decrease over 2016 rates. There was an increase of 3.2% for 2016. In the past the city has contracted with BCBS for fully insured HMO services. Renewal rates are set by BCBS and the required premium is based on the sum total of projected net paid claims, physician service fees, pooling charge, risk and administration as determined by BCBS..
DISCUSSION:
The initial rate increase received from BCBS was 1.5% increase. After further negotiations with BCBS, the City was able to achieve a 2% decrease over 2016 rates due to City's participation in BCBS wellness. 2017 HMO health plan premium cost summary including historical rates is attached.
IMPACT STATEMENT:
.No impact
RECOMMENDATIONS:
Place on the Finance Committee calendar for approval to City Council
cc: Alderman O’Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Mesiacos, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Establishing Blue Cross Blue Shield Blue Advantage HMO (BCBS) for Group Health Care Services for Period January 1, 2017 through December 31, 2017.
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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 2017 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 2017. The HMO rates attached as Exhibit "A" represents a 2.0% decrease over last year
PASSED AND APPROVED on ______________.
AYES ____ NAYS ____ NOT VOTING ____ ABSENT ____
____________________________ __________________________
Alderman Bohman, Ward 1 Alderman Garza, Ward 2
____________________________ __________________________
Alderman Mesiacos, Ward 3 Alderman Donnell, Ward 4
____________________________ __________________________
Alderman Franco, Ward 5 Alderman Saville, Ward 6
____________________________ __________________________
Alderman Hart-Burns, Ward 7 Alderman Mervine, Ward 8
____________________________ __________________________
Alderman Bugg, Ward 9 Alderman Johnson, Ward 10
____________________________ __________________________
Alderman Irvin, At Large Alderman O’Connor, At Large
ATTEST:
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City Clerk Mayor