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b <br />BOOR 1 FAj <br />UE <br />increases we have had in the last several years. To accomplish <br />that, however, a great deal of coordination will be required in <br />working with the employees in the utilization of the PPO program. <br />Mary Stanford of Stanford & Co. Insurance Consultants, Inc. <br />reviewed the following recommendation report: <br />MEMORANDUM <br />TO: The Board of County Commissioners <br />Indian River County <br />FROM: Stanford & Co. Insurance Consultants, Inc. <br />DATE: August 9, 1991 <br />RE: Recommendation Report - Group Life and Health <br />We were engaged by the County to evaluate its life and health insurance <br />programs, provide recommendations for better cost management, to solicit <br />and evaluate proposals from insurers and claims administrators, and to <br />recommend the best combination of benefits and cost for the County and <br />its employees. Following is a summary. of our analysis and <br />recommendations. Details of the analysis, with exhibits, are appended to <br />this summary. <br />Proposals were received for health coverages from Anthem, Blue Cross, <br />First Benefits, and McCreary Corporation. The McCreary proposal was <br />incomplete and non-responsive to the Request for Proposals, and therefore <br />was disqualified. Self-insured proposals from Anthem, Blue Cross, and First <br />Benefits were substantially higher cost than fully -insured plans proposed by <br />Anthem and Blue Cross. Since fully -insured plans may be funded on a <br />Minimum Premium basis to offer the same cash flow advantages (with less <br />liability) as a self-insured plan, we eliminated the self-insured proposals from <br />consideration. <br />Anthem and Blue Cross both proposed benefits the same as the current <br />health plan design, with Anthem's cost being lowest. This proposal would <br />have resulted in a 39% increase in the health insurance rates. <br />Alternatively, Anthem and Blue Cross proposed a program which would <br />include benefits similar to the current plan for use of preferred providers <br />(physicians and hospitals), with reduced benefits for use of non -preferred <br />providers. Most public and private employers have moved to these type <br />plans for cost containment purposes. With an adequate number of <br />providers, these plans work very well in managing costs, and employees <br />tend to adjust well in following plan guidelines. <br />30 <br />