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SurgeryPlus is so confident that this program would result in savings, they are willing to guarantee that savings will be double the value of the fees paid under the program. The greatest potential return on investment (ROI) is under the Fixed Fee model where the plan would experience the full benefit of savings rather than sharing the savings under the Hybrid Fee or Variable Fee model with SurgeryPlus. The estimated first year annual fee is $60,336 under the Fixed Fee model ($3 PEPM). This would increase to $80,448 in the second year ($4 PEPM). The marketing costs would be an additional $5,028 annually ($.25 PEPM based on 1,676 employees/retirees), and robust marketing of the program to members is required in order to secure a savings guarantee. SurgeryPlus anticipates that we will experience a minimum guaranteed initial net savings of $60,336 and that additional savings would be generated as utilization increases. The proposal indicates that a typical savings would be expected between the range of $298K to $695K dependent upon utilization. Use of the SurgeryPlus program is optional and members will have no out-of-pocket costs when utilizing this program. Employees may continue to utilize the Florida Blue group health plan benefits for these planned procedures; however, members choosing to do so will be responsible for out-of-pocket costs (deductibles, copays, and coinsurance). Attached is a sample agreement from the City of Sebring. If approved by the BOCC, staff will negotiate an agreement similar to the terms of the City of Sebring agreement. Once an agreement is reached, covered members would be provided SurgeryPlus communications explaining the SurgeryPlus benefit to include a personalized member card and begin accessing the plan benefits at a date to be determined. Marketing would also occur throughout the year to encourage utilization. Funding Funding for SurgeryPlus administrative fees, claims, and approved travel costs, would be from the group insurance trust. Based on the 2x performance guarantee, the cost of the program would be covered by the overall plan savings that are realized. Recommendation Staff respectfully requests the Board of County Commissioners approve the addition of the SurgeryPlus benefit under the Fixed Fee pricing model, authorize staff to negotiate an agreement consistent with the City of Sebring agreement, and authorize the Chairman of the Board to execute the negotiated agreement and any and all documents necessary to effectuate the agreement. Attachment: SurgeryPlus Proposal Overview Sample Agreement — City of Sebring 40