DISCLAIMER

 

05-0885R


RESOLUTION AUTHORIZING EXECUTION OF AGREEMENTS WITH BLUE CROSS AND BLUE SHIELD OF MINNESOTA TO PROVIDE ADMINISTRATIVE SERVICES, STOP LOSS INSURANCE AND THE BLUE PRINT FOR HEALTH-CARE SUPPORT PROGRAM TO THE CITY GROUP HEALTH PLAN DURING YEAR 2006 AT AN ESTIMATED TOTAL COST TO THE CITY OF $1,262,674.

BY COUNCILOR STEWART:

     RESOLVED, that the city is hereby authorized to execute agreements with Blue Cross and Blue Shield of Minnesota under which that company will provide administrative services and stop loss insurance to the city group health plan during calendar year 2006 for an administrative fee of $27.85 per single employee or per family per month and a fee for stop loss coverage of $11.53 per single employee per month and $30.80 per family per month, for an estimated cost of $1,090,038, and under which that company will provide a Blue Print for Health-Care Support program for an estimated cost of $172,636, for a total estimated cost of $1,262,674, which all shall be paid from the group health fund.


STATEMENT OF PURPOSE:  This resolution authorizes the city of Duluth to execute agreements with Blue Cross and Blue Shield of Minnesota to provide administrative services and stop loss insurance to the city’s group health insurance plans for 2006. Blue Cross and Blue Shield has provided administrative services and stop loss insurance to the city’s group health plans since 2000.


The cost of administrative services will be $27.85 per month for single employees and for families, for a total estimated cost for administrative services of $689,120. The cost of providing stop loss coverage will be $11.53 per month for single employees and $30.80 per month for families, for a total estimated cost for stop loss coverage of $400,918.


This resolution also authorizes the city of Duluth to execute agreements with Blue Cross and Blue Shield of Minnesota to provide its Blue Print for Health-Care Support program. The Blue Print for Health-Care Support program is a disease management tool that results in reduced health care expenditures, and an increased quality of life for those suffering from a chronic health condition. Blue Cross and Blue Shield of Minnesota is so confident of the program’s ability to save health care dollars that they will guarantee a return in savings of $1.20 for each dollar a group spends on their care support program. The labor/management health insurance committee voted to participate in the Blue Print for Health-Care Support program for diabetes, cardiac, obstructive pulmonary disease, asthma, kidney and end stage renal diseases. Based on the number of the city’s enrollees that Blue Cross has identified as having these health conditions, the cost to provide care support is estimated to be $172,636. With that level of expenditure, Blue Cross guarantees savings of $207,l63.