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Exh 4CAGENDA ITEM 4C FEBRUARY 10, 2003 CITY OF ATLANTIC BEACH CITY COMMISSIONER MEETING STAFF REPORT ACTION REQUESTED: Approve renewal of employee Health Insurance with B1ueCross B1ueShield (BC/BS) of Florida effective April 1, 2003 for a one year period and retain the current benefits and employee contribution rates. SUBMITTED BY: George Foster, Human Resource Manager DATE: February 10, 2003 BACKGROUND: In Apri12002, the City changed it's health insurance from AHL to BC/BS after a proposal was received from BC/BS and other health insurance providers declined to bid. BC/BS has advised that based upon the short period of claim experience with the City's current utilization, that they are unable to reduce the City's premium rates; however, there will be no rate increases. The City will ask BC/BS to again review our experience in July 2003 for a possible renewal for October 1, 2003. Hopefully, by this date, we will have sufficient, and favorable, experience to obtain an October 1, 2003 renewal with a rate reduction. FUNDING: Funds for this action are currently within the approved budget. RECOMMENDATIONS: 1. That the City Commission authorize the City to renew it's health insurance with BC/BS effective April 1, 2003. 2. That the City Commission retain the current benefits and employee dollar contribution amounts. ATTACHMENT: City /Employee premium cost comparison CITY MANAGER: AGENDA ITEM 4C FEBRUARY 10, 2003 BLUE CROSS /BLUE SHIELD HEALTH INSURANCE PREMIUM APRIL 1, 2002 -MARCH 31, 2003 BC/BS HMO B1ueCare #14 effective April 1, 2002 Coverage Monthly Employee Pays City Pays Employee 497.82 00.00 497.82 Em /Children 958.29 107.28 851.01 Emp/Spouse 1,020.52 153.20 867.32 Emp/Family 1,480.99 317.60 1,163.39 BC/BS BlueChoice Plan #108 effective April 1, 2002 Coverage Monthly Employee Pays City Pays Employee 547.60 00.00 547.60 Emp/Children 1,054.13 195.34 858.79 Emp/Spouse 1,122.57 245.74 876.83 Em /Family 1,629.10 509.28 1,119.82 H:\oldpc\MyFiles\03-Comm-Meetings\Health Cost For 04-01-2003.doc