Agenda - Council - 11/26/1979 - Laserfiche WebLink

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ALtachmen[ For Itequest for B(>ard Action I'~ue 2 October l], 1979 N]COLLET/E]TEL HEALTH PLAII (NEHP.) Our primary reason for requesting approval for the addition of NEHP relates to geo- graphic considerations. 2,724 County employees reside within the 21 zip code areas closest to NEHP's three major locations. The Nicollet Clinic at Franklin and Blais- dell should be particularly desireable to the County's employees residing in the near Southside area of Minneapolis. Further reasons include: . Excellent and informed responses during the post-bid interview. A reasonable attitude and reputation for flexibility resulting from conversations with some of its current clients. The addition of another quality group practice HMO; and A commitment to.future flexibility in rate calculations. In regard to the latter, we believe NEHP may have erred in its assumption that enrollees from the County would approximate the age/sex distribution of NEHP's City of Minneapolis group. NEHP is willing to review its rates for the January l, 1981 anniversary if justified by enrollment. HMO MINNESOTA We cannot recommend acceptance of the HMO Minnesota proposal at this time for the following reasons: The proposal did not reflect its current benefits and included an outdated contract which reflected indemnity plan deductibles and coinsurance features. The proposal, did not include any reference to plan improvements which had been submitted to the State for approval. The benefit questions raised during the post-bid conference were not satisfactorily answered and one major question was totally ignored in the follow-up letter in- tended to clarify those questions. The pending, but unresolved changes in plan design, offer potential for difficult or substantial communication problems. Although providing excellent services throughout.the entire Twin Cities area, the selection of HMO Minnesota would not cover any new areas of significance for the County's employees, based on our zip code study. BLUE CROSS/BLUE StlIELD (BCBS) Renewal Data The BCBS renewal data and calculations of renewal rates were provided and discussed, and found to be acceptable based upon the County's experience. Unfortunately after no change in rates on January 1, 1979 increas~ of 23.5% and 8.5% for employees and for dependents respectively will be effective on January 1, 1980. The employee rate increased a higher percentage than the dependent rate and was justified by