HomeMy WebLinkAbout~Master - Renewal of Health Insurance Administrative Services Agreement RESOLUTION NO. 19-239
RESOLUTION APPROVING RENEWAL OF HEALTH INSURANCE
ADMINISTRATIVE SERVICES AGREEMENT
FOR THE CITY OF AMES
WHEREAS, 15 years ago, the City sought alternative bids for administrative services and
excess coverage for its self-insured health and pharmacy programs and, at that time, 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, 2019, Wellmark will charge $46.40 per employee per month
in administrative and access fees for a yearly total of$309,581 (this is an increase of 1.9% over
2018/19); and,
WHEREAS, effective July 1, 2019, Wellmark will charge $67.55 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,in FY 2018/19,the stop loss rate charged per employee per month was$57.69;
however, the stop loss trend over the past several years has significantly exceeded Wellmark's
projections, and for that reason, the stop loss rates for FY 2019/20 will increase by 12.25%; and,
WHEREAS, the overall change in the City's health care costs, including projected FY
2019/20 claims,and all the Wellmark fees reflected above,are estimated to increase by 3.6%for FY
2019/20 (for a total of approximately$8,743,761).
NOW,THEREFORE,BE IT RESOLVED bythe City Council ofthe City ofAmes,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,
2019, through June 30, 2020, are hereby approved.
ADOPTED THIS 28t1'day of May, 2019.
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Diane . Voss, City Clerk John . Haila, Mayor
Introduced by: Betcher
Seconded by: Nelson
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Martin,Nelson
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 28`h day of May, 2019.