Health Choices Fee renewal
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MEMORANDUM
September 26, 2006
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
Personnel Manager Randy Peck is recommending approval of the renewal request from
Health Choices regarding their administrative services fee.
Health Choices is requesting that their administrative services fee be increase from
$16.50 per contract per month to $17.59 per contract per month or a 6.63% increase.
The new fee would be in effect for two years from July 1, 2006, through June 30, 2008.
The current rate has been in effect for two years.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Michael C. Van Milligen
MCVM/ksf
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Randy Peck, Personnel Manager
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Memorandum
September 25, 2006
TO:
FROM:
Michael C. Van Milligen
City Manager
Randy Peck lit)
Personnel Manager ~ \
SUBJECT: Health Choices Administrative Services Fee for the City's Health
Insurance Plan
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 $16.50 per contract per month to $17.59 per contract per month or a
6.63% increase. The new fee would be in effect from July 1, 2006 through June 30,
2008. The last increase went into affect on July 1, 2004.
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 $17.59 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 $17.59 per contract per
month effective July 1, 2006 through June 30, 2008.
If you have any questions, please feel free to call.
RP:bf
cc: Health Care Committee