DISCLAIMER

06-0859R


RESOLUTION FOR EXECUTION OF AMENDED EXHIBIT A AND EXHIBIT F TO SERVICE AGREEMENT WITH BLUE CROSS AND BLUE SHIELD OF MINNESOTA TO PROVIDE ADMINISTRATIVE SERVICES, STOP LOSS INSURANCE AND CARE SUPPORT PROGRAM EFFECTIVE JANUARY 1, 2006.

BY COUNCILOR KRAUSE:

     RESOLVED, that the proper city officials are hereby authorized to execute the amended Exhibit A and Exhibit F to service agreement with Blue Cross and Blue Shield of Minnesota, substantially in the form of that on file in the office of the city clerk as Public Document No. ___________________, to provide administrative services, stop loss insurance and care support program to the city’s group health insurance plans effective January 1, 2006; payable from the group health fund.


STATEMENT OF PURPOSE:  Blue Cross and Blue Shield of Minnesota is currently providing administrative and stop loss insurance to the city’s group health plans under service agreement and exhibits, which were effective January 1, 2005. This resolution authorizes the city to update the service agreement by execution of the amended Exhibit A, which impacts the financial aspect of that agreement effective January 1, 2006. For example, the prescription rebate that BC/BS provides to the city has now increased from $3.75 to $4.00 per prescription.


This resolution also authorizes the city to execute Exhibit F to the service agreement, effective January 1, 2006, which sets forth and outlines the terms of the health improvement program, known as Blue Print for Health, for the benefit of employees. Items included in this program at no cost include a stop-smoking program and health education materials. As part of this program, BC/BS provides care support management services for individuals with chronic conditions. This program is expected to reduce claim costs, and the fees for the program were previously approved by Resolution 05-0885.