cover
TO: Mayor Thomas J. Weisner
FROM: Alisia Lewis, Director of Human Resources
DATE: October 9, 2014
SUBJECT:
A Resolution Authorizing Agreement for Administrative Services with Allied Benefit Systems, Inc. for PPO Group Health Plan Administration for Period January 1, 2015 through December 31, 2015
PURPOSE:
To establish the 2015 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 city's PPO health plans. Allied will also be the administrator for a new high deductible health plan (HDHP) that includes an optional health saving account (HSA). The HDHP requires that the employee meet a higher deductible, $2,500, and in return they will pay a significantly lower premium. If the employee opts for the HDHP, they have the option of enrolling in an HSA that allows a pre-tax dollars benefit use for health care expenses. 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 a two year agreement of 2% for 2012 and 1% for 2013, and a 1.5% increase for 2014, Allied is proposing no increase for 2015. Human Resources is seeking a one year agreement for continuity and consistency as we continue to negotiate implementation of Plan "C" to all employee groups.
IMPACT STATEMENT:
RECOMMENDATIONS:
Place on the Finance Committee agenda for approval to City Council.
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Bohman
Ald...
Click here for full text