Adopt Resolution #15-11-278 Approving an Additional Network to be added to the City's 2016 Health Insurance Options

The purpose of this case is to revise the 2016 employee health insurance network choices to include the BluePrint Network.  There is a no effect on the budget by authorizing this change; it does not change the amount of the City contribution which has already been negotiated and settled.   Currently, the City offers health insurance through BCBS of Minnesota as part of the LOGIS consortium.  Currently the available networks include the Aware and the Accord networks.   The new network is called BluePrint and is defined as:  “Allina Health Network in MN (Blue Card PPO outside of MN)".   

This revision has been brought forward for City Council consideration at this time because it is a new option which has just become available for 2016.   Employees that elect this network rather than the Accord or Aware Networks (already authorized) may realize a significant reduction to their out-of-pocket costs.   The BluePrint network offers a narrower network of providers, but with (potentially) substantially less out of pocket costs.   If approved, this new option may fully meet the healthcare needs of  some of the City's employees, depending on their individual circumstances, and it is simply offering a more customizable selection of benefits to employees during the upcoming open enrollment.    

Background: 
The 2015-2016 contracts are settled, including the City’s 2016 total City Contribution amounts, set at $957 for Employee Only, $1167 for Employee + Spouse, $1251 for Employee + Children and $1358 for Family; all amounts include the VEBA contribution. The only amount not specifically listed in the attached MOUs is the amount the City will pay for the single premium.  It is the City's practice to pay for the single premium in full and it was agreed upon as part of the 2015 - 2016 contracts to pay 100% of the renewal rate for 2016 based on the $4000 deductible plan / Accord network which is $957.  If employees were to elect a single plan under the BluePrint network, the amount paid by the City would remain at $957 and the VEBA would be paid the difference to total $957.00.  If this action is approved the attached MOUs will be updated to include the BluePrint Network and the specific amount of the single contribution will be updated based on the amounts already agreed upon.    

The BluePrint network may be ideal for employees that use Allina providers.   The monthly premium amounts are less expensive under the BluePrint network, plus there are some other small differences that employees may find beneficial (such as some less expensive pharmacy copays if they use an Allina pharmacy and having the first 2 office visits in the calendar year not subject to the deductible).  There is also better coverage for the treatments associated with diabetes, high blood pressure and high cholesterol.    However, if employees elect the BluePrint network, but see a non-Allina provider, they would be subject to out of network benefits and anything over the usual and customary charges.   BluePrint is available under the $2500 and $4000 deductible levels.  It is not available under the $1500 deductible level.  

Option #1:  Approve staff's request to add the BluePrint network to the list of choices available to employees during the upcoming open enrollment.  This is the recommended action.

Option #2:  Do not approve the addition of the BluePrint Network to the list of choices available to employees during the upcoming open enrollment.  Staff does not recommend denial of this action.

Not Applicable

Staff recommends adding the BCBS BluePrint network to the 2016 health insurance options that employees may elect during the upcoming open enrollment; there is no budget impact.  

Motion to adopt resolution #15-11-278 to approve adding the BCBS BluePrint network to the 2016 health insurance options that employees may elect during open enrollment.