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AI- 3544   9. B. 1.    
BOC Regular
Meeting Date: 04/13/2021  
2021 BCBSM Renewal Agreements
Submitted For: Kim Archambault FROM: Kim Archambault, HR Director, Human Resources
Department: Human Resources  

Information
RESOLUTION:
Resolved, the Calhoun County Board of Commissioners does hereby approve the 2021 Blue Cross Blue Shield of Michigan Agreements as presented and authorizes the Board Chair to sign the attached documents.
RECOMMENDATION:
It is recommended that the Calhoun County Board of Commissioners approve the 2021 Blue Cross Blue Shield of Michigan (BCBSM) Agreements as presented.  
BACKGROUND:
The 2021 renewal agreements with BCBSM are attached, including the Schedule A that sets forth the fee structure for the current  calendar year and the Schedule B that sets forth the stop loss provisions.  These agreements are usually approved by the Board in December of each year, however, there was a delay in 2021 due to further stop loss marketing and fee negotiations.  For 2021, the administration fee increased slightly by 0.9%.  The stop loss fee was projected to have a significant increase of 35%.  After further marketing the stop loss to look for other alternatives, it is recommended to stay with BCBSM, but to adjust the specific deductible amount to $225,000 (from $180,000), which saves 12.5% off of the initial renewal. The specific deductible limit had not been adjusted in several years and should have minimal impact.  These changes were reviewed/supported by the County Benefit Committee and our benefit consultants, AON.
  

Fiscal Impact
BUDGETARY IMPACT:
The annual cost of the BCBSM administrative fee is estimated to be $442,663 and the stop loss coverage is estimated to be $712,453. These costs were already included in the 2021 approved budget.
Attachments
2021 BCBSM Renewal Docs

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