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Memorandum to Board of County Commissioners - Indian River County <br />August 9, 1991 <br />Page Two <br />In contemplation of the need for preferred provider discounts and inclusion <br />in the network of providers most commonly used by employees, the Board <br />authorized us to negotiate PPO agreements with Indian River Memorial <br />Hospital and Doctors'Clinic. Both have agreed to contract directly with the <br />County for preferred provider services at a discount. We also have <br />negotiated .an agreement with Humana Sebastian to participate in the <br />network. To encourage employees not currently using these facilities to <br />begin doing so, we are recommending an enhancement in benefits (greater <br />than current benefits) for use of Doctors' Clinic and Indian River Memorial <br />Hospital rather than other facilities. Our recommended plan design is <br />attached on page 3 of this summary. <br />Blue Cross and Anthem both agreed to administer the recommended plan <br />and proposed costs significantly lower than the current plan design. As <br />noted previously, the current plan would require a 39% rate increase, <br />whereas the recommended plan will require only a 22% rate increase. More <br />importantly, we believe the discount arrangements and benefit design will <br />result in containment of claims costs during the next year so that only <br />minimal adjustment may be required for renewal rates 10/1/92. <br />After thorough evaluation of the Anthem and Blue Cross fully -insured <br />proposals for the recommended plan design, we determined Anthem to be <br />the lowest cost on a Minimum Premium funding basis. We therefore <br />recommend the County's health plan be awarded to Anthem effective <br />10/1/91 using the recommended plan design and Minimum Premium <br />funding. <br />Life insurance proposals also were solicited through the bid process, and <br />the lowest cost plan consistent with current benefits was Anthem. <br />Proposed rates are $.36 per $1,000 of life and AD&D coverage, compared <br />to the current rate of $.46. We therefore recommend the Basic and <br />Supplemental Life and AD&D coverages be awarded to Anthem effective <br />10/1/91 at the new rate, with no change in benefits. <br />Prepared By: Mary L Stanford, CLU, ChFC <br />Attachment I� 0� <br />31 <br />BOOK 8 4 fA,,,E 6e5 <br />