DISCLAIMER

 

07-0812R


RESOLUTION AUTHORIZING EXECUTION OF AGREEMENTS WITH BLUE CROSS AND BLUE SHIELD OF MINNESOTA TO PROVIDE ADMINISTRATIVE SERVICES AND STOP LOSS INSURANCE TO THE CITY GROUP HEALTH PLAN DURING YEAR 2008 AT AN ESTIMATED TOTAL COST TO THE CITY OF $1,118,085.

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 2008 for an administrative fee of $27.71 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 $1,118,085, which 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 2008. 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 $27.71 per month for single employees and for families, for a total estimated cost for administrative services of $685,113. The specific stop loss level is changing from $250,000 for 2007 to $300,000 for 2008, with the cost of providing stop loss coverage at $11.88 per month for single employees and $31.73 per month for families, for a total estimated cost for stop loss coverage of $432,972.