Agenda Packets - 2005/11/14 - Laserfiche WebLink

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Mounds View City Council October 24, 2005 Regular Meeting Page 10 Lake Elmo, Lakedale, Oakdale, Plymouth, and Stillwater, all larger or comparable with Mounds 1 View. Anoka had the worst experience with the cooperative and didn’t necessarily recommend it 2 but felt it was a beneficial program. He stated Anoka was not sure rates were as competitive as 3 they could be each year. Another disadvantage is that it hooks the City into staying with them 4 and if you want to bid on a year-to-year basis you would have to leave the cooperative. If the 5 City stays and bids within the cooperative then the City can be booted out of the cooperative and 6 be required to seek coverage elsewhere. He advised the commitment, once you enter 7 cooperative, is to not leave and bid the process every year. 8 9 City Administrator Ulrich noted that if you look at the long run and series of years, like the last 10 six years, the co-op offers better long-term rates. He advised that due to the significant 2006 cost 11 savings of $18,846 for the same coverage, and positive feedback from other cities, staff 12 recommends the Council approve the draft resolution approving Service Cooperative (Appletree) 13 as the City’s 2006 health care insurance provider. He noted the City will need to monitor rates 14 on an annual basis and be prepared to leave the co-op if rates appear to be non-competitive. He 15 advised that one of the items that came up in staff research is that the State audited cooperatives, 16 found some were not competitive because they represent a lot of rural communities, and BCBS 17 provides better coverage to rural communities compared to Health Partners. 18 19 City Administrator Ulrich stated a number of urban communities have utilized a cooperative and 20 after research staff is confident it would be a good way for the City to go. 21 22 Finance Director Beer stated one of the reasons the co-op is very competitive is because they 23 consist of 20-25% of Blue Cross-Blue Shield’s business and have clout in getting better rates. 24 25 Councilmember Thomas stated the report mentioned other cities had, in the past, problems 26 getting timely information and answers. She asked what is the City’s recourse should that occur 27 and the City feel they are not getting proper service. 28 29 City Administrator Ulrich stated one of the most important points is that the co-op is member 30 driven so it would behoove the City to get involved with the annual meetings as things move 31 along. As a member, the City has the right to file complaints, go to the Management Board, or 32 direct policy at the annual meetings. He pointed out that with a co-op, there is both opportunity 33 and responsibility to be sure it is properly managed. He noted the pattern of responsiveness was 34 from several years ago and has now improved. 35 36 Councilmember Flaherty pointed out that four of the five cities polled give high endorsements 37 with Lake Elmo being only on since October 5th. He commented that typically co-ops practice a 38 solid business plan, is a low cost provider, which may not mean the cheapest, but they do assure 39 clientele for future years, which helps with budgeting purposes. He stated this is a sound 40 business plan and they have consciously said this is what they want to follow. He stated he has 41 no problem going with this co-op plan and would support staff’s recommendation. 42 43 Finance Director Beer stated staff looked at where are we in regard to health care as far as usage. 44 Mounds View is average to above average usage so the co-op will benefit them more than if we 45