Title
Approval for the Mayor and/or City Administrator to sign contracts for group employee benefits with Blue Cross/Blue Shield of Georgia for group health benefits medical insurance in the amount of $5,408,208, at the expected claims basis and with The Standard for ancillary benefits coverage in the amount of $639,167 for a total of $6,047,375; approval of the Self-Insured Group Health Policy and Procedures Manual for the period October 1, 2014 to September 30, 2015.
Presented by Dan Roach, Human Resources Director
Body
Item Summary:
The City, through its’ broker/consultant, issued an RFP and invitations to bid were solicited from all major insurance providers in the marketplace for all lines of coverage (Medical, Dental, Vision, Life, Short and Long Term Disability). Bids were received and evaluated on the basis of coverage levels, disruption rates, price, short and long term funding strategy and competitor benefits. This action will bind coverage with Blue Cross/Blue Shield of Georgia for an HSA (Health Savings Account) plan design in a partially self-insured/Administrative Services Only (ASO) format for medical insurance coverage for all eligible employees; and will bind coverage for all ancillary lines of coverage with The Standard (Life and ADD, Short-term Disability, Long-term Disability and Dental)
Committee or Staff Recommendation:
On July 15, 2014 the Administration, Finance, Recreation and Parks Committee recommended placing this item on the July 28, 2014 Mayor and Council Agenda.
Financial Impact:
A budget amendment will be presented to Mayor and City Council after open enrollment. The amendment will take into consideration the existing 7% increase the City budgeted for group health in FY15, the participation levels of each insurance tier, and the renewal contracts. The Group Benefits fund has $1.3 million in available fund balance, which exceeds the reserve requirements of the Group Health Policy and Procedures Manual.
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