HomeMy WebLinkAbout~Master - Amended Health Insurance Administrative Services Contract with Wellmark for Benefits January 1, 2024, to June 30, 2024 RESOLUTION NO. 23-616
RESOLUTION APPROVING AMENDED HEALTH INSURANCE
ADMINISTRATIVE SERVICES CONTRACT DOCUMENTS FROM
WELLMARK FOR BENEFITS EFFECTIVE JANUARY 1, 2024, TO JUNE 30, 2024,
FOR THE CITY OF AMES,IOWA
WHEREAS, Wellmark Blue Cross Blue Shield of Iowa is the City's provider for
administrative services and excess coverage for the self-insured health and pharmacy programs.
Wellmark has advantageous contractual relationships with medical providers in Ames and
throughout Iowa that allow the City to receive significant discounts on services received; and,
WHEREAS, as the costs in prescription drugs have continued to increase,the City engaged
in a Request for Proposals(RFP)process for a Pharmacy Benefit Manager(PBM).After reviewing
multiple proposals, the City selected Carelon Rx to manage drug costs as PBM; and,
WHEREAS,beginning January 1,2024,Wellmark will administer medical claims and stop
loss insurance coverage. With this change in PBM, the City will experience substantial savings to
the overall program as compared to Wellmark's projected pharmacy claims; and,
WHEREAS, in amending the administrative agreement for the last six months of FY
2023/24, Wellmark will charge $52.59 per member per month in administrative and access fees,
effective January 1, 2024. This is a per-member,per-month increase of 1.0%compared to first six
months of FY 2023/24.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the amended documents from Wellmark for administrative services, specific and aggregate
excess insurance, and access fees for benefits effective from January 1, 2024, to June 30, 2024,
are hereby approved.
ADOPTED THIS 12th day of December, 2023.
Renee Nall, City Clerk John A. Haila, Mayor
Introduced by: Betcher
Seconded by: Corrieri
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Rollins
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 12th day of December, 2023.