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Home My WebLink AboutNATIONAL HEALTH SYSTEMS - CONTRACT - RFP - P682 BENEFITS (3)7-30-01 TUE 09 57 AM W M MERCER INC WILT IAM M MERCER October 30, 2001 Mr Vincent Ti Pascale it 13enefits Administrator City of Fort Collins P 0 Box 580 Dort Collins Colorado 80522-0580 Subject 2002 Renewal Summary Dear Vincent FAX NO 1106000300 P 02 We have received a] I of the benefit plan renewals for the City of Fort Collins (City) I or the 2002 plan year Fnelosed is a table that includes the coverage vendor, picmium rates, and iate increase for each of the City's benefit plans Paci riCare ougui illy proposed a 29% increase to the FPO/POS ASO fees currently being charged by PacifiCate We were able to negotiate a reduction to +25% However PaeifiCare will not reduce the 2002 renewal ASO fees any further While we still do not believe that PacitCare has produced sufficient evidence to warrant the. mci ease, It is Blear to us that PaclhCaie will not change its renewal position The ieduction Gorr a 29% to a 25%n increase will reduce the requited annual ASO picmium by approximately $22,000 from the 0119mally proposed ienewal ASO fees In addition, we uc requesting a ietum of PaeifiCare ASO premium to the City in the amount of $16 318 For overpayment of premium for the period January I through September 30, 2001 This request is being made because the 2001 renewal lettei stated that ASO fees would be $18 20 and $38 45 for the EPO and POS, respeelively Ilowever it has come to our attention that PaeifiCare is billing the City $40 20 and $40 46, although these fees were never commune ited to the City of to Mercer Delta Dental originally proposed a 10 9%n ASO fee increase effective Pinuary 1, 2002 We were able to negotiate a reduction in the required increase to G 52% This will result in annual savings of $1 850 from the oagm illy proposed ienewal ASO fee Since the stop-loc5 canici will change from I rustmark effective Januaiy 1, 2002 please he awnrc of ill caveats in the renewal that the City accepts We have assumed that the City will select Standard Security of New York In the enclosed rate summary exhibit we have included a summary of the caveats that were included with the renewal however, WilhomM M, rc6r Incorporvod rhow d033760,Ao 370 17ih SI a-1 Sun 4000 D, nv,r CO 80202 OCT-30-01 TUE 09 57 AM W M MERCER INC FAX NO 1106000300 p 02 MERCER October 30, 2001 Mr Vincent H Pdscdlc, Jr Benefits Administratot City of Fort Collins P O Box 580 !toll Collins Colorado 80522-0580 Subject, 2002 Renewal Summary Dear Vincent We have received all of the benefit plan renewals for the City of Foil Collins (City) for the 2002 plan year Fni losed is d table that includes the coverage, vendor picmlum rates and into Increase foi each of the City b benefit plans PacifiCare ougunally proposed a 29% increase to the FPO/POS ASO fees currently being charged by PacifiCaie We were able to ntgotiate a reduction to +25%p However Pac.rfiCare will not reduce the 2002 renewal ASO fees any fiiithci While we still do not believe that PacifiCare has produced sufficient evidence to warrant the inciease it IS clear to us that PacifiCve will not change its renewal positron The ieduction floin a 29%p to a 25%p increase will redui-e !lie required annual ASO premium by approximately $22,000 from the ouginally proposed ienewal ASO fees in addition, we ire requr,stmg a iLturu of PacifiCare ASO premium to the City in the amount of $16,318 for overpayment of plemium for the per rod January 1 through September 30, 2001 This request is being made because the 2001 renewal letter stated that ASO fees would be $38 20 and $38 45 for the EPO and POS, respeLlively llowever it has come to our attention that P icif'Cam is billing the City $40 20 and $40 46, although these fees were never communicated to the City of to Mercer Delta Dental ongrnally proposed a 10 9% ASO fee increase effective January 1, 2002 We were able to negotiate a reduction in the required increase to() 52%p Thi% will result in annual savings of $1 850 from the originally proposed ienewal ASO fee Since the stop -loss carucr will change from Irustmark effective January 1 2002 please be awnre of all caveats in the renewal that the City accepts We have assumed that the City will select Standard Security of New York In the enclosed rate summary exhibit we have included a summary of the caveats that weie included with the renewal however, WillmniM MLrCLr Incorpnnttd phony rD33760000 — 370 17th Sbt-I Sun 4000 Drnvor CO 80202 An AWK Compiny CT-30-01 TUE 09 57 AM W M MERCER INC FAX NO 1106000300 P 03 WILLIAM M MERCER Mr VincentPascale October 30 2001 Page 2 you should also lofcr to the actual mnewal for all information that is necessary to complete this renewal If you have any questions regarding any of Lhc, 2002 renewals please call me aL (303) 376 5989 Sincemly 011 Phil Goldstein CEBS PLG GLR lkb Copy Mr idly Rueschhoff Enclosure 0 lonor Wmum ryl0 bo1 doe No Text No Text No Text