Health Choices Administrative ServicesMasterpiece on the Mississippi
Dubuque
bierd
All- America City
1
2007
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 14, 2012
Personnel Manager Randy Peck is requesting City Council approval of the
administrative services fee presented by Health Choices of $20.10 per contract per
month effective July 2, 2012 through June 30, 2014. This is a 1.01% increase.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM:sv
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Randy Peck, Personnel Manager
Masterpiece on the Mississippi
Dubuque
bitil
All- America City
'I'll®,
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: May 9, 2012
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 $19.90 per contract per month to $20.10 per contract per month or a
1.01% increase. The new fee would be in effect from July 1, 2012 through June 30,
2014. The last increase went into affect on July 1, 2010.
Dutch Ross 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 $20.10 per contract per month effective July 1, 2012
through June 30, 2014.
The requested action is for the City Council to pass a motion approving the
administrative services fee presented by Health Choices of $20.10 per contract per
month effective July 1, 2012 through June 30, 2014 and authorizing you to sign the
Amendment to the Administrative Services Agreement.
If you have any questions, please feel free to call.
RP:jmh
HEALTH CHOICES
your self- funded solution
April 26, 2012
Mr. Randy Peck, City Personnel Manager
City of Dubuque
50 West 13°i
Dubuque, IA 52001
Dear Randy:
We have reviewed the Administrative Fee paid to Health Choices for the administration of your
Group Health Plan which includes placing the Stop -Loss coverage on your behalf. Your current fee is
$19.90 per employee per month.. July 1, 2012, we request a 1.01% fee increase of $.20 per
employee per month or a total fee of $20.10 per employee per month. We will agree to this fee
amount for a two -year period, per your request.
I have included an amendment to the Administrative Agreement for signature, if the rate is deemed
acceptable.
We look forward to continuing our relationship with the City. Please feel free to contact me if you
have any questions at (563) 584 -4817.
Sincerely,
Karen Hoffmann
Director of Operation
cc: Barb Batt
Enclosure
HMdminTIC Benefits CoordinatoAHC Groups107 CityotOBQ1201212012 RenewaIWdmin Fee Increase Renewal letter 2012.docx
1605 Associates Drive, Suite 101, Dubuque, IA 52002 • 563 - 584 -4783 • 866 - 390 -3872 • FAX 563- 556 -5134
Amendment IV
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, 2012 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) $20.10 per employee per month.
2. The rate is guaranteed until June 30, 2014 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:
Dated:
Accepted on behalf of Preferred Health Choices, LLC.
Michael C Van Milligen, City Manager
Signed:
Dated:
Thomas P. O'Brien, Executive Director