HomeMy WebLinkAbout~Master - Approving Renewal of Health Insurance Administrative Services Agreement RESOLUTION NO. 20-255
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, 2020,Wellmark will charge $47.99 per employee per month
in administrative and access fees for a yearly total of$327,100 (this is an increase of 5.4% over
2019/20); and,
WHEREAS, effective July 1, 2020,Wellmark will charge $85.l 3 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,while the projected overall increase in healthcare expenditures in FY 2020/21
is now projected to be 5.5% after obtaining the Wellmark proposal, the FY 2020/21 Budget was
approved back in March with an anticipated 3.9% increase in expenditures; and,
WHEREAS,available monies in the Health Insurance Fund balance will be used to cover the
difference and this fund balance is projected to be $5,594,802 at the end of FY 2019/20 and,
therefore, sufficient funds are available to make up this difference and still handle any unexpected
claim fluctuation without jeopardizing the needed reserves as it relates to the 509A statue.
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, 2020, through June 30, 2021, are hereby approved.
ADOPTED THIS 26`' day of May, 2020.
Diane R. Voss, City Clerk John A. Haila, Mayor
Introduced by: Gartin
Seconded by: Beatty-Hansen
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Martin
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 26t'day of May, 2020.