Title
Renewal of Blue Cross Blue Shield of Florida, Inc. Administrative Services Contract (B)
This item involves a request for the City Commission to approve the renewal of Blue Cross Blue Shield of Florida, Inc. as the third party administrator and network provider for the City of Gainesville's Self -funded Health Plan.
Explanation
Blue Cross and Blue Shield of Florida, Inc., has been the Administrator of the City's self-funded 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. The current year renewal negotiations with Blue Cross Blue Shield of Florida, Inc. will result in slightly lower administrative fees for our Group Health Plan.
Blue Cross Blue Shield of Florida, Inc. continues to have the one of the largest networks in our area, and coupled with its nationwide affiliates, provides network coverage throughout the United States and many other countries worldwide. Currently, Blue Cross Blue Shield is the provider to many large employers in our area including the State of Florida, Shands, the School Board of Alachua County, Alachua County Board of County Commissioners and HCA. Blue Cross Blue Shield's market presence in Alachua County allows it to negotiate favorable cost of service contracts with the local medical community. These provider contracts result in substantial savings to the City's health plan and our employees. For the twelve months ended September 30, 2005 the savings realized based on billed versus the Blue Cross Blue Shield allowance amounted to approximately twelve million dollars. This discount rate was approximately sixty-two percent of the billed amount for services.
In addition to the favorable provider contracts, Blue Cross and Blue Shield maintains a local office that employs approximately thirty people. This local office has a specified individual dedicated to provide claims facilitation servi...
Click here for full text