City of Gainesville - File #: 080498.

• File #: 080498.
• Version: 0
• Name: Continuation of Blue Cross and Blue Shield of Florida, Inc. Administrative Services Contract (B)
• Type: Staff Recommendation
• Status: Passed
• File created: 11/6/2008
• In control: City Manager
• Final action: 11/6/2008
• Title: Continuation of Blue Cross and Blue Shield of Florida, Inc. Administrative Services Contract (B) This item involves a request for the City Commission to approve the continuance of BlueCross and Blue Shield of Florida Inc. as the third party administrator and network provider for the City of Gainesville's Self -funded Health Plan.

Date	Ver.	Action By	Action	Result
11/6/2008	0	City Commission	Approved as Recommended	Pass

Title
Continuation of Blue Cross and Blue Shield of Florida, Inc. Administrative Services Contract (B)

This item involves a request for the City Commission to approve the continuance of BlueCross and 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 will result in no increase to the per contract administrative fees for our Group Health Plan.

Blue Cross and Blue Shield continues to have 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 and Blue Shield is the provider to many large employers in our area including the State of Florida, Shands, the School Board of Alachua County, and the Alachua County Board of County Commissioners. Blue Cross and 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 ending May 31, 2008, the savings realized based on billed versus the Blue Cross and Blue Shield allowance amounted to over sixteen million dollars combined between the two health plans. The network discounts for the City of Gainesville's Health Plans were 63.5% for the Blue Choice Plan and 67.4% for the Blue Options Plan.

In addition to the favorable provider contracts, Blue Cross and Blue Shield maintains a local office that employs approximately thirty people. This ...