Health Choices Administrative Services Fee Copyright 2014
City of Dubuque Consent Items # 13.
ITEM TITLE: Health Choices Administrative Services Fee
SUMMARY: City Manager recommending approval of the Health
Choices administrative services fee effective July 1 , 2016
through June 30, 2017, and authorization for the City
Manager to sign the Amendment to the Administrative
Services Agreement.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve
ATTACHMENTS:
Description Type
Health Choices Administrative Services Fee-MVM City Manager Memo
Memo
Staff Memo Staff Memo
Amendment VII—Administrative Service Agreement Supporting Documentation
THE CITY OF Dubuque
UBE I
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Masterpiece on the Mississippi 2007-2012-2013
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: March 28, 2016
Personnel Manager Randy Peck recommends City Council approval of the Health
Choices administrative services fee of$20.50 per employee per month effective July 1,
2016 through June 30, 2017, and authorization for the City Manager to sign the
Amendment to the Administrative Services Agreement. The current fee is $20.40 per
employee per month, which includes a fee of$.05 per employee per month for the
issuance of the Certificate of Credible Coverage. The new fee would be $20.50 per
employee per month and there would be no additional charge for the issuance of the
Certificate of Credible Coverage.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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
THE CITY OF Dubuque
I-AmericaCi y
r 11111.
Masterpiece on the Mississippi 2007.2012.2013
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: March 23, 2016
I received the renewal request from Health Choices regarding their administrative
services fee. The current fee is $20.40 per employee per month which includes a fee of
$.05 per employee per month for the issuance of the Certificate of Credible Coverage.
Health Choices is requesting that their administrative services fee be increased to
$20.50 per employee per month. There will be no additional charge for the issuance of
Certificate of Credible Coverage. The new fee would be in effect from July 1, 2016
through June 30, 2017. The last increase went into effect on July 1, 2014.
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$20.50 per employee per month effective July 1,
2016 through June 30, 2017.
The requested action is for the City Council to pass a motion approving the
administrative services fee presented by Health Choices of$20.50 per employee per
month effective July 1, 2016 through June 30, 2017 and authorizing you to sign the
Amendment to the Administrative Services Agreement.
RP:Imh
Amendment VII
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, 2016 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) $20.50 per employee per month.
2. The rate is guaranteed until June 30, 2017 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
*Said fee shall be waived on ACH withdrawals administered by Purchaser.
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:
Michael C. Van Milligen, City Manager
Accepted on behalf of Preferred Health Choices LLC
Signed:
Dated:
eeling, Chief Opera ing Officer
--s I Ac-