Title
Continuation of Blue Cross/Blue Shield Administrative Services Contract (B)
Explanation
Blue Cross and Blue Shield of Florida, Inc, has been the Administrator of the City's self-insured Group Health Plan since January 1, 1993. The City's contract with Blue Cross and Blue Shield of Florida, Inc. allows for annual renewals upon mutually agreeable rates. Staff has found that the renewal rates submitted to the City from Blue Cross and Blue Shield is conservative based on national and regional industry trends. In addition, the City and its employees have realized considerable savings due to Blue Cross and Blue Shield's negotiated provider rates. Based on satisfactory past performance, the Risk Management staff recommends that the City Commission authorize continuance of the Blue Cross and Blue Shield Administrative Services Contract for the City's self-insured Group Health Plan for the 2005 plan year.
Fiscal Impact
Funds have been budgeted in the Employee Health and Accident Benefits (EHAB) Fund and the Retiree Health & Accident Benefits Fund (REHAB) in a sufficient amount necessary to cover these expenditures.
Recommendation
The City Commission authorize: 1) the continuation of the Administrative Services Contract between the City of Gainesville and Blue Cross and Blue Shield of Florida, Inc. for one (1) additional year; 2) the issuance of a purchase order in an amount sufficient to cover applicable charges for the administrative services to Blue Cross and Blue Shield of Florida, Inc.; and 3) the Interim City Manager or designee to negotiate and execute the extension to the Administrative Services Contract.