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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