Health Choices Administrative Services FeeTO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Health Choices Administrative Services Fee for the City's Health
Insurance Plan
DATE: April 29, 2008
Personnel Manager Randy Peck is recommending approval of the administrative
services fee presented by Health Choices of $17.90 per contract per month effective
July 1, 2008 through June 30, 2010.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Randy Peck, Personnel Manager
THE CITY OF Dubuque
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Masterpiece on the Mississippi
2007
TO: Michael C. Van Milligen, City Manager„
FROM: Randy Peck, Personnel Manager
SUBJECT: Health Choices Administrative Services Fee for the City's Health
Insurance Plan
DATE: April 22, 2008
I received the renewal request from Health Choices regarding their administrative
services fee. Health Choices is requesting that their administrative services fee be
increased from $17.59 per contract per month to $17.90 per contract per month or a
1.76% increase. The new fee would be in effect from July 1, 2008 through June 30,
2010. The last increase went into affect on July 1, 2006.
Bill Robinson of Gallagher Benefit Services has reviewed the renewal request and
recommends that we accept the proposed increase in the administrative services fee.
The Health Care Committee has also approved the proposed increase in the
administrative services fee. Sufficient funds are available in the health insurance
reserve to finance the increase.
I recommend that we approve the administrative services fee presented by Health
Choices of $17.90 per contract per month effective July 1, 2006 through June 30, 2008.
The requested action is for the City Council to approve a motion approving the
administrative services fee presented by Health Choices of $17.90 per contract per
month effective July 1, 2008 through June 30, 2010.
If you have any questions, please feel free to call.
RP:tlb
cc: Health Care Committee
Amendment I
Administrative Services Agreement
Whereas the City of Dubuque and Preferred Health Choices have agreed to an Administrative Service Agreement
dated July 1, 1999 and as amended.
Effective July 1, 2008 said agreement is hereby amended as follows:
Attachment D Compensation to Health Choices is hereby deleted and replaced as follows:
Attachment D
Compensation to Health Choices
Purchaser shall pay Health Choices on the first day of each month the following amounts per Covered Person per
month for its Administrative Services and Provider Contracting Services under this Agreement during each such
month:
1. Administrative Services (as described in Section 1.1) and Provider Contracting Services (as described in
Section 1.2) $17.90 per employee per month.
2. -The rate is guaranteed until June 30, 2010 or until the City of Dubuque seeks competitive quotes,
whichever occurs first.
Exceptions and Additions:
There shall be periodic retroactive and prospective adjustments to the above payments to reflect the actual number
of Covered Persons per month and portions thereof."
Accepted on beh of the City of Dubuque
Signed:
Dated:
Accepted on behalf of Preferred Health Choices, LLC.
Signed:
Dated: