HomeMy WebLinkAboutCORRESPONDENCE - RFP - P902 BENEFITSSEGAL
THE SEGAL COMPANY
5670 Greenwood Plaza Blvd., Suite 425 Greenwood Village, CO 80111-2499
T 303,714.9900 F 303.714.9990 WvvvVsegalco.wrn
DIRECT DIAL NUMBER
(303)714-9915
E-MAIL ADDRESS
dfranks@segalco.com
September 26, 2008
Gwen Feit P �Oz
�" . ..
City of Fort Collins
Human Resources, Department .
215 North Mason Street
P.O. Box 580
Fort Collins, CO. 80522-0580
RE Western Cost Management Trust (WCMT) Proposed Renewal Effective January. 11 2009
Dear Gwen:
BCS Insurance Company has submitted an increase to the rates for.both the WCMT organ and..bone '
marrow transplant and drug rider coverages effective January 1, 2009.
Proposed Renewal
The renewal is based on BCS's analysis of WCMT's recent claims experience and on -going. transplant
situations. BCS initially proposed a 10% rate increase, however, we were able to negotiate the renewal to
an 8.3% increase.
The Bioscrip Drug Rider, which is included in your coverage, 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 (Alternative I)
are as follows:
Current Proposed % Change
$8.56 $9.27 8.3%
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:
Benefits, Compensation a nd!lRConsulling ATLANTA BOSTON CALGARY CHICAGO CLEVELAND DENVER HARTFORD HOI ISTON LOS ANGELES
Il` MINNEAPOLIS NEW ORLEANS NEW YORK PHILADELPHIA PHOENIX PRINCETON RALEIGH SAN FRANCISCO TORONTO WASHINGTON. CC
Multinational Group of Actunes antl Consultants BARCELONA BRUSSELS. DUBLIN GENEVA HAMBURG :OHANNESBURC MEELBOURNE
fl MEXICO CRY OSLO PARIS
Gwen Feit
City of Fort Collins
September 26, 2008
Page 2
18-month
12-month
Plans
Benefit Period
Benefit Period
With Druz Rider
Alternative I
$9.27
$8.87
Alternative II
7.58
7.26
Alternative III
3.76
3.65
Without Drug Rider
Alternative I
$8.77
$8.37
Alternative 1[
7.07
6.77
Alternative III
3.26
3.11
Alternative I: Covers 100% of covered charges.
Alternative II. Covers 80% of covered charges and the participant or underlying] plan: rovers.
29% of covered charges.
..Alternatiye,III Benefits are subject to a $100,000 deductible (payable %by the underlying plan) ,
and payable at 160% thereafter.
Drug Rider: Extended drug and support services coverage for 12 months after expiration of
the 18-month or 12-month benefit period.
Insurance Company Ratings
The Segal Company believes it is important to consider the financial strength of insurance companies and, --
managed care organizations, which are candidates for initial selection or renewal as insurers or service
providers to employee benefit plans. Therefore, we ate providing the financial strength rating that was .
available to, us on the date this document was prepared for the insurance company under consideration:,.,
Company BCS Insurance Company
Rating A -
Rating Agency A.M. Best
When available, we select A.M. Best or Standard & Poor's ratings because of their depth of coverage of
insurance companies and overall reputation as a rating service. Several other rating services (e.g., Fitch
and Moody's) also provide ratings of insurance companies and managed care organizations, which we
provide when a rating from A.M. Best and Standard & Poor's is not available. You may wish to consult
these other services before making a decision regarding the initial selection or renewal of an insurance
company or managed care organization. A.M. Best and Standard & Poor's regard "vulnerable" companies
to be at relatively serious risk in terms of meeting both claims and creditor obligations. Insurance
companies in this category should be researched carefully before being selected.
Finally, The Segal Company 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
Gwen Feit
City of Fort Collins
September 26, 2008
Page 3
organization evaluations performed by any rating service. Segal is not responsible for providing
monitoring of these ratings on an ongoing basis.
Please let us know if you have any questions regarding the proposed renewal. We will discuss this with
you in the near future.
Sincerely,
Dallas Franks
cc: Linda J. Sernmer
Joanne Lee
5007645v U01945.001' . . -