DISCLAIMER

07-0494R


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, 2007.

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, 2007; 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, and last amended in 2006. 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, 2007. For example, the specified stop loss level moved from $225,000 to $250,000, and the rate for 2007 reflected that change.


This resolution also authorizes the city to execute Exhibit F to the service agreement, effective January 1, 2007, to update the financial aspects of the health improvement program, known as Blue Print for Health. For 2007, there is an overall reduction of about ten percent in the per participant per month cost. Actual savings will vary dependent on overall program utilization.