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TO: Mayor Richard C. Irvin
FROM: Alisia Lewis, Director of Human Resources
DATE: August 17, 2017
SUBJECT:
A Resolution Authorizing Blue Cross Blue Shield Blue Advantage HMO (BCBS) for Group Health Care Services for Period of January 1, 2018 through December 31, 2018.
PURPOSE:
To establish the 2018 rates for HMO BCBS Blue Advantage medical insurance.
BACKGROUND:
The city received 2017 renewal rates equaling a 2% decrease over 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 renewal rate received from BCBS was a 7.2% increase. After further negotiations with BCBS, the City was able to achieve a 2.25% increase over 2017 rates. 2017 HMO health plan premium cost summary including historical rates is attached.
Attached is the HMO Schedule of Benefits
Attached are the 2018 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, 2018 through December 31, 2018.
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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 2018 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 2018. The HMO rates attached as Exhibit "A" represents a 2.25% increase over last year.