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HEALTH BENEFIT PROGRAM FISCAL 1994 CONTRACTS The Board reviewed the following memo dated November 3, 1993: ................................................................. To: James Chandler, Date: November 3, 1993 County Administrator From: Jack Price, Personnel Sub: Health Benefit Program Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The major health care plan design changes authorized first by the Board of County Commissioners for fiscal 1992 have been effective in accomplishing the two primary objectives of the plan, to provide competitive coverage for employees and to minimize cost increases. Negotiations are now completed with the carrier/third party administrator and PPO providers for fiscal 1994. Attached for Board of County Commissioner's approval are: 1. Contract between Anthem Life Insurance Company of Florida and Indian River County for Life, Accidental Death and Dismemberment, Utilization Management and Medical insurance through the "Minimum Premium Plan" funding agreement. 2. Contract between Gold, Vann & White, P. A. (Doctor's Clinic) as a PPO provider, and Indian River County. 3. Contract between Indian River Memorial Hospital as a PPO provider, and Indian River County. Some fee schedules were increased by approximately 5% above last years. Overall the projected costs increase by 5.4% during fiscal 1994, compared with a national medical inflation trend rate of 16.9%. Last year the projected costs increased by 1%. The Budget Office reports that funds are available for this 1994 program. Plan design changes implemented for fiscal 1993 are expected to continue to modify cost increases in total claims experience during fiscal 1994. During 1994 the plan design will be reviewed again and appropriate changes will be recommended for fiscal 1995. Personnel Director Jack Price advised that the primary difference this year is that the fee structure for Indian River Memorial Hospital was increased 5 percent. MOTION WAS MADE by Commissioner Eggert, SECONDED by Commissioner Tippin, to approve the contracts with Anthem Life Insurance Company of Florida; Gold, Vann & White, P.A. (Doctors Clinic) as a PPO provider; and Indian River Memorial Hospital as a PPO provider, as recommended by staff. Under discussion, Commissioner Adams asked if we rebid this every few years. 47 BOOK 90 PA."F �� 7 ROV - 91993