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C-1 171 FINALIST EVAJLATION CIGNA and Blue Cross & Blue Shield were named as the two finalists for health insurance; m therefore, all aspects of their programs were analyzed in greater detail. Both carriers proposed triple option programs (PPO, POS, HMC) with similar benefits and premiums generating an approximate 16% increase over the current rates. Since both carriers proposed programs similar in cost and coverage, the MCSD Insurance Committee iaadc and passed the motion to have both carriers give presentations to the Committee on January 11. 1999. FINALIST PRESENTATIONS Both carriers gave impressive and convincing presentations to the Committee; however, upon further consideration and discussion, the Committee came to the conclusion that CIGNA was better able to provide a more comprehensive level of benefits to MCSD for the following reasons: i ) CIGNA has a larger I•iMO/POS physician network in Martin County than Blue Cross & Blue Shield. This is a significant benefit because 75% of the active employee population are HMO/POS participants. To further limit the number of participating physicians in the local area will result in an increased number of employee complaints regarding the benefit program. 2) There is no significant cost savings associated with switching the Health program to Blue Cross & Blue Shield. Both CIGNA and l3lue Cross & Blue Shield proposed premiums generating an approximate I5%a rate increase for the upcoming plan year. 3) There are no significant benefit enhancements associated with switching the health program to Blue Cross & Blue Shield. Both finalists proposed programs with benefits that mirror the current program. 4) Blue Cross & Blue Shield's PPO program, however, does reduce the benefit payable to retirees for whom Medicare is primitry and the CIGNA Ppo is secondary. Under the current CIGNA program, retirees on Medicare receive full benefit coordination. hider the proposed BC&BS program, all benefits payable to retirees on Medicare will be reduced by the amount paid by Medicare. `Phis is a significant benefit reduction in comparison to the existing coverage.