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C> C-1 Health & Vision Evaluation HEALTH INSURANCE Proposals for health insurance were submitted by Blue Cross & Blue Shield. Humana, Preferred Choice and the incumbent, CIGNA HealthCare. Upon review and careful consideration of each program proposed by each carrier, The Gehring Group presented its recommendation to eliminate Humana and Preferred Choice as options for the health coverage to the MCSD Insurance Committee during the December 17, 19913 Committee meeting. At that time, the Committee made and passed the motion to name CIGNA and Blue Cross & Blue Shield as finalists for the health insurance. ELIMINATION OF NON -FINALISTS Humana proposed a triple option program (FPO, POS, HMO) with premiums that generated an approximate 8.2% cost increase, assuming current enrollment. This was the least costly program received, however, several issues prevented Humana Irom being named a finalist for the health insurance. One of the main concerns taken into consideration in the recommendation to eliminate Humana as a viable option was the lack of physicians participating in I lumana's Martin County network. Humana's recent exit from the Medicare market in Martin County quickly reduced the size of its physician network. In addition, Humana was very open about [lie status Of its current negotiations with Martin Memorial Hospital stating that they were unable to guarantee that Martin Memorial would still be a participating network hospital upon the District's health plan renewal date of March 1, 1999. Flumana's proposed program benefits are in line with the current program; however, due to the loss of network physicians and the uncertainty regarding the contracting status of Martin Memorial Hospital, Humana is not the best choice for MCSD at this time. Preferred Choice proposed a stand-alone 11MO option for MCSD to offer side by side with a triple option program offered by the other proposers. The cost for this option is 31.5% higher than the current HMO rates and approximately 15% higher than all ofthe HMO options proposed in response to the RFI'. Preferred Choice was eliminated as a finalist due to its uncompetitive rate structure. In addition, both finalists, CIGNA and Blue Cross & Blue Shield, expressed chill due to the sire of the group, they were unable to allow an additional I IMO option to be offered along side their own. Suclt an offer is usually available to groups larger than MCSD.