Ordinance No. 8,9902.0000914 -8
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® AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANAGER TO
EXECUTE AND THE CITY CLERK TO ATTEST TO A RENEWAL OF THE
AGREEMENT WITH INTERCARE HEALTH PLANS AS A THIRD PARTY
ADMINISTRATOR FOR THE ADMINISTRATION OF MEDICAL AND
DENTAL CLAIMS AND FOR NETWORK SERVICES ON BEHALF OF THE
CITY OF BAYTOWN; AUTHORIZING PAYMENT OF ONE HUNDRED
EIGHTY -SEVEN THOUSAND AND NO /100 DOLLARS ($187,000.00); AND
PROVIDING FOR THE EFFECTIVE DATE THEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS:
Section 1: That the City Council of the City of Baytown, Texas, hereby authorizes and
directs the City Manager and the City Clerk of the City of Baytown to execute and attest to a renewal
of the agreement with InterCare Health Plans as the third party administrator for the administration
of medical and dental claims and for network services on behalf of the City of Baytown. A copy of
said Agreement is attached hereto, marked Exhibit "A," and made a part hereof for all intents and
purposes.
Section 2: That the City Council of the City of Baytown authorizes payment to InterCare
Health Plans of the sum of ONE HUNDRED EIGHTY -SEVEN THOUSAND AND NO /100
DOLLARS ($187,000.00), pursuant to the Agreement.
Section 3: This ordinance shall take effect immediately from and after its passage by the
City Council of the City of Baytown.
INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the City
of Baytown this the 14th day of September, 2000.
4& e.
PETE C. ALFARO, Mayor
ATTEST:
G Y W. SMITH, City Clerk
APPROVED AS TO FORM:
ACID RAMIREZ, Sk.jCity Attorney
c:\MyDocuments\Council\99-00\September\RenewTPAInterCare
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Sep 12 00 08:07a Jim Stowe 720- 294 -0083 p.2
11011419'UARE
5500 Greenwood Plaza Boulevard
Englewood, Colorado 80111
V 303-770 -57101 F 303- 793 -0147
September 5, 2000
Ms. Alison Froehlich -Smith
Director of Human Resources
City of Baytown
2401 Market Street
Baytown, TX 77522 -0424
Re: Renewal Oct 1, 2000
Dear Ms. Froehlich- Smith:
The renewal of your administrative contract with lnterCare is October 1. Last
year, at the request of Raymond Bradford, I estimated what the renewal would
be for this year. Based on the demands of the market, or customer expectations
if you will, and the adjustments we were, and are still making, at InterCare to
meet those demands, the cost pressure on our side continues.
The estimate last year for this year's renewal included a heavy estimate of what
our actual expenses were at that time. We did not want to ask for the entire
increase at once. Still, personnel cost pressures continue. Nationally the jobless
rate is still at its lowest in decades and here in Colorado it is under 3 %.
InterCare has experienced another 15% increase in compensation expense from
last year. We increased the staffing in the client services area by just over 30%.
While this is not the only component of our pricing, it is a large part of it.
There are manythings that we do in addition to paying claims. As you are
probably aware we provide many reports to HCC Benefits on a quarterly basis.
Many of these are specialized depending on what the normal reports may show:
InterCare does not charge additionally for requested situation - specific reports.
We continue to upgrade our capabilities in telephone access and in distribution,
all in the effort to keep information moving as quickly and smoothly as possible.
In summary we want you to have the very best in service. In planning for that we
EXHIBIT A
Sep 12 00 08:07a Jim Stowe 720- 294 -0083 p.3
® need to ensure that we can keep pace with the demands within our organization.
To that end we request the following adjustments for the contract year
2000/2001.
ITEM
FEE.PEPM
% INCREASE
Medical
$12.20
9.9°x6
Dental
$1.90
8.5%
Medical Management
$4.85
7.7%
RX Card
$2.00
0.0%
COBRA"
$.50
42.0%
Beech Street
$2.45
0.0%
Repricing
$1.25
0.006
Total
$25.15
7.5°x6
bur normal tee low lhls service is 3.90 per employee per moMh
Alison, I want to reiterate our commitment to the City of Baytown, and to
providing the best in services. Hal of making employees happy with a plan is
what level of help and attention they get. This is sometimes more important than
the benefits themselves, and we at InterCare are dedicated to that. We want to
be here for you now, and in the future.
Thank you for your consideration and please let me know if you have any
questions.
Sincerely,
S
im Stowe
CC: Phil Peters