Health Choices Administrative Services Fee 2010-2012Masterpiece on the Mississippi
TO: 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: May 28, 2010
Dubuque
kittil
ml- Amdlcacity
11111 !
2007
Personnel Manager Randy Peck is recommending approval of the administrative
services fee presented by Health Choices of $19.90 per contract per month effective
July 1, 2010 through June 30, 2012.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Randy Peck, Personnel Manager
Micfiael C. Van Milligen
Masterpiece on the Mississippi
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: May 6, 2010
If you have any questions, please feel free to call.
RP:sya
Dubuque
krail
All- AmedcaCNy
1 1 1 I
2007
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 $18.90 per contract per month to $19.90 per contract per month or a
5.3% increase. The new fee would be in effect from July 1, 2010 through June 30,
2012. The last increase went into affect on July 1, 2008.
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. I recommend that we approve the administrative services
fee presented by Health Choices of $19.90 per contract per month effective July 1, 2010
through June 30, 2012.
The requested action is for the City Council to pass a motion approving the
administrative services fee presented by Health Choices of $19.90 per contract per
month effective July 1, 2010 through June 30, 2012 and authorizing you to sign the
Amendment to the Administrative Services Agreement.
HMS Preferred
HEALTH CHOICES
your self - funded solution
1605 Associates Drive, Suite 101, Dubuque, IA 52002
563- 556 -8070 • 1- 800 - 747 -8900 • FAX 563- 556 -5134
April 1, 2010
Randy Peck
City of Dubuque
50 West 13 Street
Dubuque, IA 52001
Dear Randy,
Consistent with the requirements in the Administrative Agreement between the City of Dubuque and
Health Choices, please consider this letter as the 90 -day advance notice of a proposed arlministiative
fee increase.
2009 Rates
Medical: $18.90
City of Dubuque
Administrative Rates
2010 -2011 Rates
Medical: $19.90
Change
Medical: $1.00
The above increase is a two -year administrative rate guarantee. It will be reflected in the renewal
proposal that is presented in conjunction with the stop -loss proposal, as in past years.
We look forward to continuing our relationship with you. Please feel free to contact me if you have
any questions at (563) 584 -4869 or Karen Hoffmann at (563) 584 -4817.
Sincerely,
Jennifer Hayes
Benefit Coordinator
cc: Bill Robinson
Barb Batt
A Division of Health Management Services, Inc.
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, 2010 said agreement is hereby amended as follows:
Attachment D Compensation to Health Choices is hereby deleted and replaced as follows:
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) $19.90 per employee per month.
2. The rate is guaranteed until June 30, 2012 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 behalf of the City of Dubuque
Signed:
D
Michael C. Van Milligen, City Manager
Dated:
Accepted on behalf of Preferred Health Choices, LLC.
Signed:
Amendment III
Administrative Services Agreement
Attachment D
Compensation to Health Choices