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Home My WebLink AboutRESPONSE - RFP - P985 BENEFITS-A-SEGAL THE SEGAL COMPANY 6300 S. Syracuse Way Suite 750 Englewood, CO 80111-7302 T 303.714.9900 F 303.714.9990 www.segalco.com April 12, 2005 Ms. Katey Tarkington Benefits Administrator City of Fort Collins P. O. Box 580 Fort Collins, CO 80522-0580 Re: Proposal No. 985 Dear Ms. Tarkington: Pursuant to our recent conversation regarding the referenced Request for Proposal, the Western Cost Management Trust ("WCMT") Organ and Bone Marrow Transplant benefit plan, as the incumbent program for the City of Fort Collins ("City"), can duplicate the current coverage in 2006. BCS Insurance Company, who fully insures this coverage, determines overall WCMT premium rates in late September or early October each year for the next calendar year. Rates are calculated on a pooled basis for all participating groups taking into account their combined demographics and claims experience. For this reason, we are unable to provide, at this time, premium rates effective January 1, 2006. We are confirming, however, that the City's in -force rate for 2005 is $9.65 per eligible employee per month, which also covers eligible dependents. The option selected covers 100% of eligible expenses for an 18-month benefit period and includes the 12-month immunosuppressant drug rider. Please refer to the certificate of coverage issued by BCS Insurance Company previously provided to the City for benefit details. If you are unable to locate a copy, please let me know and I will request another for you from BCS. On behalf of the WCMT and BCS Insurance Company, we would be pleased to continue providing these important benefits to eligible City employees and their families. Benefits, Compensation and HR Consulting ATLANTA BOSTON CHICAGO CLEVELAND DENVER HARTFORD HOUSTON LOS ANGELES MINNEAPOLIS NEW ORLEANS NEW YORK PHILADELPHIA PHOENIX SAN FRANCISCO SEATTLE TORONTO WASHINGTON, DC o ,� , Multinational Group of Actuaries and Consultants AMSTERDAM BARCELONA GENEVA HAMBURG JOHANNESBURG LONDON MELBOURNE MEXICO CITY OSLO PARIS Ms. Katey Tarkington April 12, 2005 Page 2 Please let us know if you have any questions regarding this program or if we can provide additional information for the City's consideration. Sincerely, Susan K. Imming 140828/01945.001 IV i "SEGAL THE SEGAL COMPANY 6300 S. Syracuse Way, Suite 750 Englewood, CO 80111-7302 T 303.714.9900 F 303.714.9990 www.segalco.com September 21, 2005 Ms. Gwen Feit Benefits Administration City of Fort Collins Human Resources Department 215 North Mason Street P.O. Box 580 Fort Collins, CO 80522-0580 DIRECT DIAL NUMBER 303-714-9920 E-MAIL ADDRESS simniing@segalco.com RE: Western Cost Management Trust (WCMT) Proposed Renewal Dear Gwen: We are pleased to advise that BCS Insurance Company is proposing to continue the current rates for the WCMT organ and bone marrow transplant and drug rider coverages effective January 1, 2006. Proposed Renewal The renewal is based on BCS's analysis of WCMT's recent favorable experience The Chronimed Drug Rider, which is included in your coverage, will continue at the 2005 rate of $.52 per eligible per month. The rider provides an additional 12 months of anti -rejection drug benefits following expiration of the benefit period covered by WCMT's base coverage. The current and proposed rates for the transplant and drug rider coverages for your plan are as follows: Current Proposed % Change $9.65 $9.65 0% Coverage Options There are two coverage options available under the WCMT, one for an 18-month benefit period (your current coverage) and the other for a 12-month benefit period. Both options otherwise provide exactly the same benefits. Rates for the three alternative plans for both the 18-month and 12-month benefit periods are shown below: 18-month 12-month Alternative Plans Benefit Period Benefit Period Without Drug Rider Alternative I $9.13 $8.71 Alternative II 7.35 7.01 Alternative 111 3.32 3.17 With Drug Rider Alternative 1 $9.65 $9:23 Alternative II 7.87 7.53 Alternative 111 3.84 3.69 Benefits, Compensation and HR Consulting ATLANTA BOSTON CHICAGO CLEVELAND DENVER HARTFORD HOUSTON LOS ANGELES MINNEAPOLIS NEW ORLEANS NEW YORK PHILADELPHIA PHOENIX SAN FRANCISCO SEATTLE TORONTO WASHINGTON, DC Multinational Group of Actuaries and Consultants AMSTERDAM BARCELONA GENEVA HAMBURG LONDON MELBOURNE MEXICO CITY OSLO PARIS Ms. Gwen Feit City of Fort Collins September 21, 2005 Page 2 Alternative I: Covers 100% of covered charges. Alternative II: Covers 80% of covered charges and the participant or underlying plan covers 20% of covered charges. Alternative III: Benefits are subject to a $100,000 deductible and payable at 100% thereafter. Drug Rider: Extended drug and support services coverage for 12 months after expiration of the 18-month or 12-month benefit period. SEGAL believes it is important to consider the financial strength of insurance companies and managed care organizations that are candidates for initial selection or renewal as insurers or service providers to employee benefit plans. Therefore, we regularly provide the most recent Standard & Poor's current claims paying ability rating for the insurance company under consideration. We have selected Standard & Poor's because of their excellent overall reputation as a rating service. In addition, they evaluate more insurance companies than any of the other comparable rating services. You may wish to consult other rating services (e.g., Fitch and Moody's) that also provide claims paying ability evaluations of insurance companies and managed care organizations before making a decision regarding the initial selection or renewal of an insurance company or managed care organization. In this instance, however, Standard & Poor's, which only rates carriers that specifically request the service, has not published a rating for BCS Insurance. A.M. Best, another rating service, rates BCS Insurance Company as "A — (Excellent)". SEGAL does not itself perform insurance company or managed care organization credit quality evaluations and does not offer any warranty as to the scope or reliability (e.g., with respect to an organization's ability to meet future obligations) of the insurance company or managed care organization evaluations performed by A.M. Best or any other rating service. Please let us know if you have any question regarding the proposed renewal. We will discuss this with you in the near future. Sincerely, Susan K.Imming /dh cc: Dallas Franks Justin Kindy 143215/01945.001