HomeMy WebLinkAbout~Master - Renewal of health insurance Administrative Services Agreement with Wellmark RESOLUTION NO. 18-215
RESOLUTION APPROVING RENEWAL OF HEALTH INSURANCE
ADMINISTRATIVE SERVICES AGREEMENT
FOR THE CITY OF AMES
WHEREAS, fourteen years ago,the City sought alternative bids for administrative services
and excess coverage for our self-insured health and pharmacy programs;and,at that time,we added
requirements developed by an internal Health Insurance Team; and,
WHEREAS,that team's final report and recommendations served as the basis for the request
for proposal(RFP)that yielded three quotations,and the City Council subsequently approved award
of the administrative services and excess coverage contract to Wellmark Blue Cross Blue Shield of
Iowa; and,
WHEREAS, over the years, Wellmark has provided good customer service and has had a
commendable record of accurate and timely claims payments; and,
WHEREAS,Wellmark has a proven record of being able to administer the existing plans and
has been a willing and capable partner in our efforts to improve the health status of employees and
their families through quality programs and health promotion; and,
WHEREAS, effective July 1, 2018,Wellmark will charge $44.42 per employee per month
in administrative and access fees for a yearly total of$296,000 (this is an increase of 4.96% over
2017/18); and,
WHEREAS, effective July 1, 2018,Wellmark will charge $57.69 per employee per month
of specific and aggregate stop loss premiums; and,
WHEREAS, the individual stop loss protects the City from specific claims that exceed
$125,000 incurred in one year, while the aggregate stop loss protects the City in the event total
claims exceed 120% of projected losses; and,
WHEREAS,the total increase for health care costs and administrative fees is 3.77%,and this
will be covered by the 5%premium and contribution increase included in the FY 2018/19 budget.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the renewal documents with Wellmark Blue Cross Blue Shield of Iowa for administrative
services, specific and aggregate excess insurance, and access fees for health care benefits effective
July 1, 2018, through June 30, 2019, are hereby approved.
ADOPTED THIS 24`'day of April, 2018.
Diane R. Voss, City Clerk John A. Haila, Mayor
Introduced by: Betcher
Seconded by: Gartin
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Martin,Nelson
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 24t'day of April, 2018.