Monday, October 29, 2012 at 4:30 p.m.
City of Rochelle Council Chambers
420 N. 6th Street
Rochelle, IL 61068
I. CALL TO ORDER:
• Pledge to the Flag
• Prayer
II. ROLL CALL:
III. PUBLIC COMMENTARY:
IV. BUSINESS ITEMS:
1) Selection of Health Insurance Plan and Provider
V. EXECUTIVE SESSION
VI. ADJOURNMENT
BUSINESS ITEMS:
Agenda Item #1 Selection of Health Insurance Plan and Provider
References:
default Memo from Human Resources Manager Lynette Fischer
default Markets Available through Broker Agencies
default Comparison of Health Insurance Proposals
Recommended Action:
Consider health insurance plans and providers.
History and Fact:
Due to the rising cost of health insurance, the Mayor and City Council requested that staff solicit proposals from multiple agencies for the City's health insurance plan. The City of Rochelle currently has a self-insured health plan with the plan year ending annually on October 31. Six broker agencies were asked to submit proposals and all were provided with a set of pertinent data including past claims histories, deductible and out-of-pocket structures and current plan design. All of the agencies were encouraged to seek out proposals for both fully-insured and self-insured options with any vendor they felt would serve the City's needs of quality care and customer service at a reasonable cost.
Discussion:
Three separate agencies submitted three unique options that were considered to be at an appropriate level of insurance risk for the City. HR/Risk Manager Lynette Fischer reviewed all of the proposals and evaluated them based on cost, networks accessed, services provided by the Third-Party Administrator, services provided by the broker agencies and additional stand-alone coverage. As a result of the analysis, the consensus of management is to recommend renewing the health insurance plan with Cypress Benefit Administrators through Query Insurance. This option will provide the same reliable customer service, stability in our provider network and a lower fixed cost. In addition staff is recommending purchasing the Fidelity Security Life $60,000 specific deductible with $50,000 aggregating specific feature and remaining with the ECOH/HFN network. This choice will limit the City's maximum funding on any one person to $60,000 and the addition of the aggregating specific feature offers lower guaranteed fixed costs.
The last couple of years the City of Rochelle's health insurance plan has experienced some large, costly claims. This, coupled with an era where double digit health insurance increases are not unusual, made it difficult to get competitive bids. The recommended plan includes a total potential maximum funding decrease of approximately $31,000 for the 2012-2013 plan year.
Recommendation:
Renew our health insurance plan with Cypress Benefit Administrators through the Query Insurance firm beginning November 1, 2012.
