Health Choices Administratvie Services FeeTHE CITY OF
Dui
Masterpiece 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: April 28, 2014
Dubuque
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AI -America City
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2007 • 2012 • 2013
Personnel Manager Randy Peck recommends City Council approval of Amendment VI
to the Administrative Services Agreement with Health Choices. This agreement
increases their administrative services fee from $20.15 per contract per month to $20.40
per contract per month, or a 1.24% increase. The new fee would be in effect from
July 1, 2014 through June 30, 2016.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
bt/1144 .,
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Randy Peck, Personnel Manager
Masterpiece on the Mississippi
Dubuque
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All-AmedcaCRy
'I1I 1'
2007
TO: Michael C. Van Milligen, City Manager
FROM: Randy Peck, Personnel Manager
SUBJECT: Health Choices Administrative Servi es Fee for the City's Health
Insurance Plan
DATE: April 24, 2014
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 $20.15 per contract per month to $20.40 per contract per month or a
1.24% increase. The new fee would be in effect from July 1, 2014 through June 30,
2016. The last increase went into affect on July 1, 2012.
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 $20.40 per contract per month effective July 1, 2014
through June 30, 2016.
The requested action is for the City Council to pass a motion approving the
administrative services fee presented by Health Choices of $20.40 per contract per
month effective July 1, 2014 through June 30, 2016 and authorizing you to sign the
Amendment to the Administrative Services Agreement.
RP:Imh
Amendment VI
Administrative Service 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, 2014 said agreement is hereby amended as follows:
Attaclunent 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) $20.35 per employee per month.
2. The rate is guaranteed until June 30, 2016 or until the City of Dubuque seeks competitive
quotes, whichever occurs first.
3. COBRA and Early Retiree Administration/Issuance of Certificates of Credible Coverage.
Initial Setup Fee: $100
Annual Renewal Fee (Year 2 and After) $100
Initial Notice Fee (upon enrollment in
City of Dubuque Medical/Rx Plan $5.00
Notification Fee Upon Termination $12.00
Per electing COBRA/Retiree/Month $8.00*
Minimum Monthly Charge $35.00
Certificates of Credible Coverage issued
to each Terminating Participant under
Purchaser's Plan/Month
$0.05/employee covered
*Said fee shall be waived on ACH withdrawals administered by Purchaser.
H:Admin/Agreements/Agreement 14/City of Dubuque Administrative Services Amendment VI Page 1
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
Michael C. an Milligen, City Manager
Signed:
Dated:
Accepted on behalf of Pre,
Signed:
Dated:
S7-7//71
ed Health Choices, LLC
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Thomas P. O'Brien, Chief Operating Officer
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H:Admin/Agreements/Agreement 14/City of Dubuque Administrative Services Amendment VI Page 2