TITLE
Recommendation to authorize City Manager to execute renewal contracts with Anthem Blue Cross, the City’s Third Party Administrator (TPA), for the Preferred Provider Organization (PPO), Health Maintenance Organization (HMO) and Medicare Supplement group health plans; Scan Health Plan for the Medicare Advantage Plan; United Healthcare for the Medicare Advantage Plan and closed-panel dental plan; Express Scripts/Medco as the Prescription Benefit Manager (PBM) for the prescription drug plan; Delta Dental for the fee-for-service dental plan; Medical Eye Services (MES) for the vision plan; Standard Insurance Company for life insurance and Long- and Short-term Disability; and Union Mutual Life Insurance Company (UNUM) through Larry Lambert & Associates Insurance Services, for long-term care benefits; and
Authorize City Manager to execute any subsequent amendments and/or agreements necessary to maintain current benefit levels and remain in compliance with state and federal laws on all plans. (Citywide)
DISCUSSION
In accordance with Memoranda of Understanding (MOU) between the City of Long Beach and its employee associations, the Health Insurance Advisory Committee (HIAC), which is composed of representatives from each of the employee associations, met with City staff from the Department of Human Resources to review the current employee health, dental, and life insurance programs. Due to continued rising costs in healthcare, the City changed health insurance carriers for plan year 2012 from CIGNA Great West to Anthem Blue Cross for the Preferred Provider Organization (PPO), and changed the Healthcare Maintenance Organization (HMO) from United HealthCare to Anthem Blue Cross. As a result, with seven months of claims data, we are currently on track to save the estimated $2 million, as projected for 2012.
Based on the review of renewal proposals, HIAC submitted the following recommendations for plan year 2013 (January 1, 2013 to December 31, 2013) for both acti...
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