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Home My WebLink AboutCORRESPONDENCE - RFP - P902 BENEFITSInNI sw"Ili'I ZI1Al(;It RFct1IN Al. A1ANA',III August 9, 2005 Gwen Feit City of Ft. Collins, Colorado P O Box 580 Ft Collins. CO. 80522 Dear Gwen: As the City of Ft. Collins is a valued customer of Vision Service Plan' (VSP), we hope the members have enjoyed a positive outcome with all aspects of our services. We are pleased to offer a renewal that will be in effect from January 1, 2006 for a 24-month term. VSP has reviewed the current program and developed fees based on the experience of the program. We are pleased to offer three options providing the current and higher benefit levels. Please review the renewal information and let me know if you have any questions. To renew the contract with VSP, please have the appropriate representative select the option chosen, sign the Renewal Agreement page and return to VSP. We appreciate your business and value our relationship with the City of Ft. Collins. Cordially, Tom Swartzbaugh, CEBS Regional Manager Enclosures cc: Jerry Rueschhoff, Mercer H.R. Consulting VS11 I(IS (1 171II StM;FI, SUI'Ilz IN85, UcwE.R, (.(1 8'41265 'IF I: 7n 2-7661 Noo-2 is-3665 1'nX: ;n;-3q2--768 SA',11 (It R Wl It SITP A'1 VSP.C9A1 UTIL0001 w, GROUP ID: 1206�)7 Yllnzrnary CONTRACTTYPE: ASP GROUP TYPE: Individually Rated CLIE. T L'TILIZA770.'V RFPORT FOR: FORT COLLLNS COLORADO, Ul)'OF PAGE: 1 RUN PATE: C7i31r'2a05 NBR GROSS RETENTION RETN NET CLAIM GAIN' PLR AVG C�V 4 CLMS PAID P R'Or) COVERED $ $ °•� $ $ LOSS $ 5� COST PAID FREQ 2002 8,601 $102,988 nc $18,6�� 18.1 3'84,363 S84,363 SO 100 �~ /$99A8 848 98 2003 8,892 $112,689 S19,133 17.0 S83556 $93,55e SO 100 1:SY�� 919 103 2004 8,920 $103,875 S14,649 14.1 S89,226 589,226 $0 100 $99,69 895 100 AUG 757 $9,072 $1,241 13.7 $7,B31 67,831 SO 100 5103.03 76 100 F _P 758 $9,313 $1,243 133 $8,069 58,069 SO 10C $97.22 83 10 OCT 739 $9,177 $1,212 13.2 57,965 S7,965 SO 100 S103.45 77 104 NOV 702 $9,658 $1,155 12.0 S8,504 $8,504 SO 100 $94.48 90 128 DEC 70C S10.579 $1,153 10.9 $9,426 $9,426 SO 100 $99.22 95 136 JAN 7C8 $7,581 $1,161 15.3 S6.419 S6.419 S^ '00 $57 73 t03 FE6 $8,585 $1,214 14.1 $7,371 $7,371 $0 100 $95.99 76 104 MAR 766 $8,49C $1,256 14.8 57,240 $7,240 SO 100 $10065 72 94 APR 726 $8,690 $1,196 13.8 S7,494 $7,494 SO 100 5104,09 72 99 MAY 744 $8,959 $1,226 13.7 S7,731 S7,731 SO 100 $99.11 78 105 J„N 760 $7,845 $'.,246 15.9 $6,598 $6,598 SO 100 $97.04 F. JUL 734 $7,830 ` $1,204 15.4 86,627 $6,527 So 100 $89.55 74 89 101 LTM Lbw 8,826 $105,764 ` S14,509 137 $91,275 S91,275 SO 10C $97-13 934 106 AEJ � D� 0 $G SO 0.0 SO SO SO 0 $3,00 0 0 CC.{"' 1409C $1611561 T S23,154 14,3 $138,707 $138,707 SO 100 $96.51 1,408 100 YTD 5,170 S57,986 $8,505 14.7 S49,481 549,481 $0 100 $96.45 513 cu MLMBERSRIP-AVcR Ata E6 REV; CLM IND PNL PERIOD MDR S HALL 2002 $2A 5 S9.75 811.90 98 2003 $2.15 $1 0.52 $12.67 98 2604 $1.64 $10.00 $11.65 99 01 $1.65 $9.53 $1 1 18 96 02 $1.65 S9.79 $11,43 98 Q3 $1.64 S9.03 $10.67 99 04 $a00 $o.00 $0.00 0 LTV $1.64 $1C.34 $1199 98 CC $1.64 S9.64 $11.49 96 YTD $1.65 59.57 $1122 97 AD,j- Adjustmenis SPOUSE CLMS 4 AVG MER CLMS 9 AVG SP PERIOD $ CLMS COST _ $ CLMS COST o AUG $3,234 32 S101,07 42 $1,891 17 $111.26 22 SEP $3,159 32 $98.73 39 S2,527 25 $101.09 30 OCT $3,624 34 S106.60 44 S2,055 20 $102.74 26 NOV $4,070 42 $96.91 47 $2,978 29 $102.70 32 DEC $5,606 52 S107,82 55 $2,192 23 S95.32 24 JAN $3,423 37 $92.51 51 $1,997 23 $86.83 32 FEB $3,318 34 $07,57 45 $2,504 24 $104.33 32 MAR $4,567 46 $99,27 64 S1,73b 17 $1C2.04 24 APR $4.038 35 $11537 49 $1,786 18 $99.22 25 MAY $3,788 38 $99.69 49 S1,821 16 $101.18 23 JUN $2,986 29 $102,97 43 $2,022 17 $118.93 25 JUL $3,458 41 $8434 55 $1,404 13 $108.02 1$ 70T $45,272 452 5100. 16 48 $24,913 244 $102.10 26 REV' $2.15 $2.15 $1.64 $1.64 4 J , $1.64 V $1,64 $1 65 $1.64 $1,66 $1.64 $1.65 $1 65 $1,b4 $1,64 $1.64 $1 65 - `DEPENDENTS CLMS n AVG DPT SP+ $ CLMS COST i DEP9.5 S2,705 27 $100, 18 36 58 $2.383 26 $91.64 31 61 $2,286 23 $99.40 30 56 $1,455 19 $76.56 21 53 $1,627 20 $81.36 21 45 $999 13 $76,87 18 49 S1,SSC 16 $86.10 24 55 $939 9 $104.31 13 36 S1,670 19 $87,91 26 51 S2,121 22 $96,41 28 51 S1,591 22 $72,3C 32 57 $1,764 20 $88.22 27 45 $21 090 238 $88.61 25 52 CC -Current Contract Passion for people. Vision for life. �� -� Gt&-r,tir 7 L7i17• Lust Twelve_Lfonths r - 1 "TD - }ear To Date - A terisks Indicate EstirrzaLes Due to ti'ora or, Partial Pa} anent a v T VSP Renewal Agreement City- of Ft Collins, Coloado Effective 1/1/06 through 12/31/07 Please Check Appropriate Box For Confirmation of The Renewal Option You Choose CCRRENF OP"PIONI Current Plan Inlorrnation Exam Everv: every 12 months even 12 months Lenses Every: every 12 months every 12 months Frame Every: every 24 months every 24 tnontlis Fees Administrative Fee Estimated Claim Cost In Netn"ork Allowances Wholesale Frame Allowance Retail Frame Allowance Contact Lens Allowance CpPa vrnen t Out ofNetn orl; Examination, up to: Single Vision Lenses, up to: Bifocal Lenses, up to: Trifocal Lenses, up to: Frame, up to: Elective Contact Lenses, up to: V OPTION II Framc 105.00 Contacts $105.00 every 12 months every 12 months every 24 months KI 01"] ION III Frame $120.00 Cntacts $120.00 every 12 months every 12 months every 24 months $1.64 $1.47 $1.51 $1.59 $10.16 $10.31 $10.59 $11.10 $34.00 $34.00 $40.00 $46.00 $90.00 $90.00 $105.00 $120.00 $100.00 $100.00 $105.00 $120,00 Exam $15.00 $15.00 $15.00 $15.00 Materials $15.00 $15.00 $15.00 $15.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $40.00 $40.00 $40.00 $40.00 $50.00 $50.00 $50.00 $50.00 $30.00 $30.00 $30.00 $30.00 $80.00 $80.00 $80.00 $80.00 To renew your contract with VSP and ensure continuous service, please have the appropriate representative review this information and select the desired renewal option, sign and return this Renewal Agreement to the address or fax number below. VSP produces your Plan Policy upon receipt of your confirmation of renewal. Your new Plan Policy may contain some provisions that are changed from those in your current Policy, so you should review the new Policy carefully upon receipt. Please file this Agreement and Letter with your VSP contract as it serves as your notice of renewal. Tom Swartzbaugh, CEBS By: Regional Manager Vision Service Plan "Title: 1050 17th Street, Suite 1885 Denver CO 80265 Date: (303) 892-7663 phone (303) 892-7768 fax FORT COLLINS COLORADO, CITY OF RENEWAL EXHIBIT 12063997 Self -funded VSP Program Average Claims Amount (ACA): Inflation (INF): Year 1 Year 2 Reserve Establishment to( Incurred but not Reported Claims (RES): Retention (PET): Paid Frequency (PF). Current Revenue per Member (REV/MBR): Renewal Date: Renewal Contract Term: Number Covered: 000 12.5°6 103.00 Claims pe r 1,000 employees $ 1.64 January 1, 2006 24 Months 734 Renewal Formula ACA x (1 + INF) x PF = CIm Amt BET Admin Fee / REV(MBR = GUARANTEE (CIm Amt / (1-PET)) - CIm Amt $98.63 x 1.015 x 0.103 = $10.31 0.125 $1.47 / $1.64 0.0% Service Profile % of Patients Seeing In -Network Providers: 980,0 °, of Patients Seeing Out-ot-Network Providers: 20,0 Service Percentages Eye Examination Only: 39% Receiving Materials: 61% Single Vision Lenses' 31% Bifocal Lenses:' 29% Trifocal Lenses 20,6 Elective Contact Lenses.' 38 0 Frame: 430,0 ` Equals 10006 of claims with materials dispensed Last Twelve Months ending: Jun-05 12063997 Self -funded VSP Program Average Claim 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 ALTERNATIVE EXHIBIT Renewal Date: Renewal Contract Term: Number Covered: $ 98.63 1 0% 05% $2.68 0% 12.5% 103.00 Claims per 1,000 employees $ 164 January 1, 2006 24 Months 734 ACA x 1 + INF + MOD x PF = Clm Amt RET Admin Fee I REVIMBR = GUARANTEE (Clm Amt / (1-RET)) - Clm Amt $98.63 x 1.015 + $2.68 x 0.103 = $ 10.59 0.125 $ 1.51 / $ 1.64 = 0.0% Service Profile • of Patients Seeing In -Network Providers 98% • of Patients Seeing Out -of -Network Providers 2% Service Percentages Eye Examination Only 39% Receiving Materials 61% Single Vision Lenses " 31% Bifocal Lenses:' 29% Trifocal Lenses:' 2% Elective Contact Lenses'' 38% Frame. 43% Equals 100% of claims with materials dispensed 12063997 Self -funded VSP Program Average Claim 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 (REVIMBR) FORT COLLINS COLORADO, CITY OF RENEWAL ALTERNATIVE EXHIBIT Renewal Date: Renewal Contract Term: Number Covered: $ 98.63 1.0% 0.5% $7 63 0% 12.5% 103.00 Claims per 1,000 employees $ 164 January 1, 2006 24 Months 734 ACA x 1 + INF + MOD x PF = Clm Amt RET Admin Fee I REVIMBR = GUARANTEE (Clm Arm / (1-RET)) - Clm Amt $98.63 x 1.015 + $7.63 x 0.103 = $ 11.10 0.125 $ 1.59 1 $ 1.64 = 0.0% Service Profile of Patients Seeing In -Network Providers. 98% of Patients Seeing Out -of -Network Providers 2% Service Percentages Eye Examination Only 39% Receiving Materials 61% Single Vision Lenses 31% Bifocal Lenses * 29% Trifocal Lenses:' 2% Elective Contact Lenses:* 38% Frame 43% * Equals 100% of claims with materials dispensed