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Home My WebLink AboutVSP - CONTRACT - RFP - P682May 16, 2002 Vincent Pascale City of Ft.Collins, Colorado 200 W Mountain Ave. Ft. Collins, CO 80521 Dear Vince: 1~00ut+Ge$ H As The City of Fort Collins is a valued customer of Vision Service Plan (VSP), we hope the group has enjoyed a positive outcome with all aspects of our services. We are pleased to offer the group another period of quality coverage. The renewal will be in effect from January 1, 2003 for a 24-month tern. VSP reviewed the group's program and developed rates based on the experience of the vision care program. These rates are outlined in the enclosed renewal exhibit. VSP considers many factors when determining rates, including claim cost, utilization, claim frequency, and trend. VSP has offered a renewal rate moving the city closer to a standard VSP allowance as well as an alternative renewal that would leave the group with the current level of benefits. The rates are provided on the proposed rate report enclosed with this letter. As you will see, we are comfortable with leaving our administrative fees the same for an additional 24 months. Please review the renewal information, and let me know if you have any questions. I am available to meet with you to further discuss the enclosed material or provide additional information if necessary. To renew the contract with Vision Service Plan, please sign the bottom portion of this letter and return it to VSP. We appreciate your business and value our relationship with The City of Fort Collins Cordially, Tom Swartzbaugh, CEBS Senior Account Executive RENEWAL NOTICE Please sign and return this letter or fax to (303)-892-7768 to acknowledge acceptance of the renewal. VSP produces the Plan document upon receipt of the confirmation of renewal. City of Fort Collins Group Number 12063997 Renewal Date —January 1, 2003 Self Funded Renewal Rate $2.15 Renewal Option I Rate $2.15 Claim Cost $ 10.19 Renewal Option II Rate $2.15 Claim Cost $$9.74 (current program) Plan Accepting-<�'^'� Authorized Group Representative Signature VISION SBRVICC PLAN 1050 17TH srRBc'r, SUI1 [: 1885, DENVER CO 80256 Teu 303.892.7663 FAX: 303.892.7769 800.225.3665 VISIT OUR WEB SITE AT WWW.VS[I.COM 26 PROPOSED RATES REPORT CITY OF FORT COLLINS Renewal Date January 1, 2003 24 month rate guarantee �Z�Ci7:4,3noel *W_Y_K CURRENT PROPOSED PROPOSED PLAN OPTION I OPTION II 12/12/24 12/12/24 12/12/24 Frame Allowance 34.00 39.00 34.00 Elective Contact Lenses 100.00 110.00 100.00 Exam Copayment 15.00 15.00 15.00 Material Copayment 15.00 15.00 15.00 NON-MEMBER DOCTOR REIMBURSEMENT SCHEDULE CURRENT PROPOSED PROPOSED PLAN RENEWAL OPTION I 12/12/24 12/12/24 12/12/24 Examination 30.00 35.00 30.00 Single Vision Lenses 30.00 30.00 30.00 Bifocal Lenses 40.00 40.00 40.00 Trifocal Lenses 50.00 55.00 50.00 Frame 30.00 45.00 30.00 Elective Contact Lenses 80.00 110.00 80.00 Necessary Contact Lenses 150.00 210.00 150.00 Administrative Fee Estimated Claim Cost Prepared 5/16/02 CURRENT PLAN $2.15 $9.32 PROPOSED RENEWAL $2.15 $10.19 PROPOSED OPTION I $2.15 $9.74 12063997 Self -funded VSP Program Average Claims Amount (ACA): Inflation (INF): Year 1 Year 2 Modifications to Benefit Allowances (MOD): Reserve Establishment for Incurred but not Reported Claims (RES): Retention (RET): Paid Frequency (PF): Current Revenue per Member (REV/MBR): FORT COLLINS COLORADO, CITY OF RENEWAL EXHIBIT Renewal Date: Renewal Contract Term: Number Covered: $ 95.08 3.0% 1.5% $4.63 0% 12.5% 98.00 Claims per 1,000 employees $ 2.15 January 1, 2003 24 Months 713 Renewal Formula ACA x (1 + INF) + MOD x PF = CIm Amt RET Admin Fee ! REV/MBR = GUARANTEE (Clm Amt / (1-RET)) - Clm Amt $95.08 x 1.045 + $4.63 x 0.098 = $10.19 0.125 $1.46 1 $2.15 = 0.0% Service Profile • of Patients Seeing In -Network Providers: • of Patients Seeing Out -of -Network Providers: Service Percentages Eye Examination Only: Receiving Materials: Single Vision Lenses:' Bifocal Lenses:' Trifocal Lenses:* Elective Contact Lenses:` Frame: Equals 100% of claims with materials dispensed Last Twelve Months ending: Apr-02 97% Modifications 3% Current Renewal Wholesale Frame: $34 $39 Elective Contact Lenses: $100 $110 29% Examination, up to: $30 $35 71 % Single Vision Lenses, up to: $30 $30 34% Bifocal Lenses, up to: $40 $40 28% Trifocal Lenses, up to: $50 $55 2% Frame, up to: $30 $45 36% Elective Contact Lenses, up to: $80 $110 47% Vision Service Plan )63997 Self -funded VSP Program Average Claim Amount (ACA): Inflation (INF): Year 1 Year 2 Reserve Establishment for Incurred but not Reported Claims (RES): Retention (RET): Paid Frequency (PF): Current Revenue per Member (REV/MBR): FORT COLLINS COLORADO, CITY OF RENEWAL ALTERNATIVE EXHIBIT Renewal Date: Renewal Contract Term: Number Covered: $ 95.08 3.0% 1.5% 0% 13.5% 98.00 Claims per 1,000 employees $ 2.15 January 1, 2003 24 Months Renewal Formula ACA x 1 + INF x PF = Clm Amt RET Admin Fee / REVIMBR = GUARANTEE (Clm Amt / (1-RET)) - Clm Amt $95.08 x 1.045 x 0.098 = $ 9.74 0.135 $ 1.52 / $ 2.15 = 0.0% Service Profile % of Patients Seeing In -Network Providers: 97% • of Patients Seeing Out -of -Network Providers: 3% Service Percentages Eye Examination Only: 29% Receiving Materials: 71% Single Vision Lenses:* 34% Bifocal Lenses:* 28% Trifocal Lenses:* 2% Elective Contact Lenses:* 36% Frame: 47% * Equals 100% of claims with materials dispensed 713 Administrative Services Purchasing Division Citv of Fort Collins LETTER OF TRANSMITTAL TO: Vincent Pascale FROM: Keith I. Ashby, CPPO, Buyer(1) DATE: October 1, 2002 RE: VSP Renewal Contract Enclosed please find your copy of the signed contract in the above -mentioned matter. If you have any questions, please call me at 2191. cpj/kia Encl 215 North Mason Street • 2nd Floor • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6775 • FAX (970) 221-6707 LLIAM M. November 15, 2000 Mr. Vincent Pascale Benefits Administrator City of Fort Collins 200 West Mountain Avenue, Suite A P.O. Box 580 Fort Collins, Colorado 80522-0580 Subject: VSP - 2001 Vision Care Renewal Dear Vincent: OF ryf. Nn®ra,e Rt c �Vfl Enclosed is a copy of the renewal acceptance letter from Vision Service Plan (VSP) for the City of Fort Collins' 2001 vision care renewal. Please have the appropriate City representative sign the letter and then send it to VSP with a copy to us. There is also a space in VSP's letter where the City needs to indicate the plan design that is to be effective in 2001. Please insert "Current Plan" in this space since there are to be no plan changes in 2001. If you have any questions regarding VSP's renewal letter, please call me at (303) 376- 5989. Sincerely, Phil Goldstein PEG:GLR:Ikb Copy: Mr. Jerry Rueschhoff Enclosure G:\Practice\H&g\CltyFtC\pdcing\2001\Ranewal Letten;Nspaccept.dO William M. Mercer, Incorporated 370 17th Street, Suite 4000 Denver, CO 80202 Phone 303 376 0800 An MMC Company