title
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF POMPANO BEACH, FLORIDA, APPROVING AND AUTHORIZING THE PROPER CITY OFFICIALS TO EXECUTE A PREFERRED PATIENT CARE AND HMO APPLICATION WITH BLUE CROSS AND BLUE SHIELD OF FLORIDA, INC. AND HEALTH OPTIONS, INC. PROVIDING FOR HEALTH CARE SERVICES AND SUPPLIES; PROVIDING AN EFFECTIVE DATE.
(Fiscal Impact: $596,743 is the approximate project increase.)
staffcontact
(Staff Contact: Ed Beecher)
summary
Summary Explanation/Background:
Pursuant to the labor contracts with the City's labor unions, the City is required to provide major medical group health benefits to all full time employees. The City's current provider, Blue Cross/ Blue Shield of Florida, Inc., (BCBS), has provided these services since FY 2000 and has demonstrated excellent service to the City and plan members. A Request for Proposal (RFP) was received in July, 2010, and Blue Cross/Blue Shield of Florida, Inc. was selected as the most responsive bidder and awarded the bid. In September, 2013, the program was reviewed and the City Commission approved the renewal and continuation of the current program. We have reviewed the feasibility of placing this coverage out for RFP, however, do not believe it is in the best interest of the City to do so. A comparison of premium costs of local governmental agencies - Exhibit I, showing that the City is currently receiving an excellent level of benefits for the premium paid, taking into consideration the renewal, our City's claims experience and demographics. Additionally, the proposed renewal is below the South Florida annual medical trend increase for medical and prescription programs which is estimated at 10%.
BCBS has provided the City with confirmation of a 7.9% rate increase (PPO and HMO) and NO increase in the cost for dental, with NO change in the level of coverage, deductibles or co-payments. A summary of the renewal rates are attached as Exhibit II. Additionally, the City will receive a one-t...
Click here for full text