DISCLAIMER

06-0860R


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 2007 AT AN ESTIMATED TOTAL COST TO THE CITY OF $1,282,333.

BY COUNCILOR KRAUSE:

     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 2007 for an administrative fee of $27.85 per single employee or per family per month and a fee for stop loss coverage of $11.88 per single employee per month and $31.73 per family per month, for an estimated cost of $1,108,733, and under which that company will provide a Blue Print for Health-Care Support program for an estimated cost of $173,600, for a total estimated cost of $1,282,333, 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 2007. 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 $689,452. The per contract administrative cost remains unchanged from the 2006 level. With the change in the specific stop loss level from $225,000 for 2006 to $250,000 for 2007, the cost of providing stop loss coverage will be $11.88 per month for single employees and $31.73 per month for families, for a total estimated cost for stop loss coverage of $419,281.


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 for 2007. The Blue Print for Health-Care Support program is a disease management tool for those suffering from the following chronic health conditions: diabetes, cardiac, obstructive pulmonary disease, asthma and chronic kidney disease. It has been in place since 2006.