TO: Mayor Thomas J. Weisner
FROM: Alisia Lewis, Director of Human Resources
DATE: September 24, 2013
SUBJECT: title
A Resolution Authorizing Blue Cross Blue Shield Blue Advantage HMO (BCBS) and Life Insurance for Group Health Care Services for Period of January 1, 2014 through December 31, 2014.
body
PURPOSE:
To establish the 2014 rates for HMO BCBS Blue Advantage medical insurance and life insurance with Ft. Dearborn Life Insurance Company.
BACKGROUND:
City received 2014 renewal rates from BCBS that equaled a 2.8 increase over 2013 rates. The increase for 2013 was 2.3%. In the past the city has contracted with BCBS for HMO services. Renewal rates are based on actual claim experience. The City also received 2014 renewal rates from Ft. Dearborn/BCBS guaranteeing that the current optional life rates will remain frozen for another three years.
DISCUSSION:
2014 HMO health plan premium cost including historical rates is attached. The proposed 2014 rate increase of 2.8% is more than the increase for the prior year due, in part, to additional fees attributable to the healthcare reform plan (ACA), higher than expected large HMO claims and higher projected net claims. The total premium charged includes the sum of projected net paid claims, physician service fees, pooling charges, cost of risk and administration for managing the health plan.
IMPACT STATEMENT:
RECOMMENDATIONS:
Place on the Finance Committee calendar for approval to City Council.
cc: Alderman O'Connor, Chairman
Alderman Schuler
Alderman Mervine
Alderman Peters, Alternate