TO: Mayor Thomas J. Weisner
FROM: Alex G. Alexandrou, Chief Administrative Services Officer
DATE: December 6, 2013
SUBJECT: title
A Resolution Authorizing Agreement for Administrative Services with Allied Benefit Systems, Inc. for PPO Group Health Plan Administration for Period January 1, 2014 through December 31, 2014
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PURPOSE:
To establish the 2014 rates for third-party administrative services of Allied Benefit Systems, Inc. for the City's PPO Health Insurance Plan.
BACKGROUND:
Allied Benefit Systems has been the City's third -party administrator for the City's PPO health plan, Section 125 Flex Plan, Medicare Part D and COBRA administration for PPO participant employees, retirees and their dependents since 2006.
DISCUSSION:
Allied has been instrumental in designing, implementing and administering the new PPO Plan "C" which the City has continued to implement for the majority of its employee groups currently in addition to successfully administering City PPO plans "A" and "B". Allied's dedicated customer service call center and website allows current employees, retirees and dependents easier access to claims status, in-network providers and the ability to submit vision claims. The rollout of a flex credit card in lieu of flex participants having to submit paper claims for reimbursement has increased efficiency and has been well received. Allied has continued to meet its contractual performance criteria which measures their claim turnaround time, payment and financial accuracy and coding/clerical accuracy which has resulted in no financial penalties imposed to date.
After coming off an administrative rate freeze for the 2010 and 2011 and an expiring two year agreement (2% for 2012 and 1% for 2013), the attached Allied proposal is for one year (2014) with a 1.5% increase above 2013 for 2014. Human Resources is seeking a one year agreement for continuity and consistency with continued implementation of Plan "C" ultimately to all emp...
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