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TO: Mayor Richard C. Irvin
FROM: Alisia Lewis, Chief Human Resources Officer
DATE: August 27, 2024
SUBJECT:
A Resolution Authorizing Agreement for Administrative Services with Blue Cross Blue Shield of Illinois(BCBSIL) for HMO, PPO and Value HSA(HDHP) Group Health, Prescription Benefits Management(PBM), Flexible Spending, Dental, Vision, C.O.B.R.A. and Stop Loss Plan Administration for period January 1, 2025 through December 31, 2025.
PURPOSE:
To authorize an agreement for administrative services with Blue Cross Blue Shield of Illinois for the City's HMO, PPO and Value HSA(HDHP) health insurance plans, dental insurance, vision coverage, prescription benefits management (PBM), flexible spending, C.O.B.R.A. and stop loss insurance coverage.
BACKGROUND:
The City of Aurora provides a fully insured HMO for active employees through BSBSIL Illinois (BCBSIL does not allow retirees to remain on the HMO), and two self-funded plans for active employees and Pre-65 retirees through CIGNA. CIGNA's offerings include a Traditional Plan and a High Deductible Health Plan. January 1, 2018, the City carved out the Post-65 Medicare retirees to a Medicare Advantage Program and set separate funding rates for the active employees and the Pre-65 retirees to cover their necessary liabilities under the CIGNA plan.
DISCUSSION:
The Human Resources team requested Assured Partners perform a complete market analysis for the city's BCBSIL HMO plan and the CIGNA OAP and HDHP plans for the 2025 plan year. The analysis included the following:
PPO Network Disruption and Claims Repricing
HMO Network Disruption
Rx Reprice and Disruption (PPO plan)
Administration Services
Individual Stop Loss
Dental Administration
Vision Administration
Aetna declined the city's request due to an inadequate HMO network. The HR team received offers from Blue Cross Blue Shield of Illinois, CIGNA, and United Healthcare. BCBSIL and CIGNA provided the most competitive combined offers for the city's consi...
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