CM-10-04-076ROUND ROCK, TEXAS
i'! RPCN. PASS E}N. Pi2i: SPI:R1F
Item Caption:
City Manager Approval Summary Sheet
Correction to Letter of Understanding — Third Party Administrator - Aetna
Approval Date: 4/2/2010
Department: Human Resources
Project Manager: Teresa Bledsoe, Director Human Resources
Item Summary:
Consider executing a correction to a previously approved Letter of Understanding with Aetna Life Insurance Company
for Independent third -party administration of self-funded health plans.
Strategic Plan Relevance: 13.0 Continue and enhance sound business and financial practices and tools.
Cost: $342,197
Source of Funds: Self Funded Health Insurance
REV. 3/8/10
Administrative Service Fees
ASC
City of Round Rock
Renewal Period: 1/1/10 through 12/31/10
Contractholder Number - 819919
• The below Administrative Service Fees will become effective 1/1/10.
• The fees below exclude charges for items such as printing, special reports and late fees.
These will be billed separately.
• The below ASC fees assume that Aetna will be Claim Fiduciary for Level 1 and Level 2 appeals. City of Round Rock
performs claim ficuciary for voluntary appeals after Levels 1 & 2 are exhausted (Option 4).
• MedQuery is included in the below ASC medical fees.
• Simple Steps to a Healthier Life is included in the below ASC fees.
• Beginning Rights"" Maternity Program is included in the below ASC fees.
• The National Advantage with Facility Charge Review programs have been included in
the renewal at a charge of 50% of any attained savings.
• Rx rebate share is 0%
• Consulting Fee, if applicable, is subject to Plan Sponsor approval.
Service Fee Comparison
Projected Number of Enrolled Employees
Choice II/APM 771
Current Period Projected Period
1/1/09-12/31/09 1/1/10-12/31/10 % Change
Administrative Service Fees as Billed
Choice II/APM (PEPM)
Wellness Allowance of $10,000
Total ASC fees
Administrative Service Fees as Total Contract Period Dollars
Choice II/APM
Total Service Fee
41.23
381,460
$ 381,460
31.56
1.08 *
32.64
(1.08) *
Accepted for City of Round Rock
By:
Title:
Date:
Waived
31.56 -23.5%
291,993
291,993 -23.5%
06/12/2009
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