The URL can be used to link to this page

Home My WebLink AboutResolutions - 1994.12.08 - 24022MISCELLANEOUS RESOLUTION # 94331 November 10, 1994 BY: PUBLIC SERVICES COMMITTEE - Lawrence A. Obrecht, Chairperson RE: SHERIFF'S DEPARTMENT - OAKLAND COUNTY CORRECTIVE SERVICES MEDICAL PROGRAM TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS WHEREAS the Sheriffs Department has had a medical program with Blue Cross/Blue Shield for hospitalization of inmates; and WHEREAS the Oakland County Board of Commissioners authorized such a program by Miscellaneous Resolution #93298; and WHEREAS the Sheriffs Department wishes to continue with this arrangement for the period December 1, 1994 through November 30, 1995; and WHEREAS Blue Cross/Blue Shield will monitor and contain costs, review for inmates insurance coverage, bill Medicaid and qualify Oakland County for a hospital discount: and WHEREAS the administrative fee charged by Blue Cross/Blue Shield is more than offset by the discount provided by the designated hospital provider; and WHEREAS the County Executive and Sheriffs Department have reviewed the proposed program and are in concurrence; and WHEREAS the attached contract is in accordance with the County Executive's Contract Review Process. NOW THCKLI-Lnit LSEi HtSULVED that the Oakland County Board of Commissioners authorizes the Chairperson of the Board to enter into the attached administrative contract with Blue Cross/Blue Shield for the Oakland County Corrective Services Medical Program for the period December 1, 1994, through November 30, 1995. Chairperson, on behalf of the Public Services Committee, I move the adoption of the foregoing resolution. PUBLIC SERVICES COMMITTEE 1/ (L igHEouu A - RtmEmAIAtmmL(12/94 - VAS) ADMINISTRATIVE SERVICES CONTRACT - WEEKLY WIRE BETWEEN BLUE CROSS AND BLUE SHIELD OF MICHIGAN AND OAKLAND COUNTY CORRECTIVE FACILITY .114 •• •n •••• .1.••n••• 1. Contract Effective Date: 2. Renewal Term: 3. Line(s) of Business: X Blue Cross Domestic* Foreign ,X Blue Shield Master Medical December 1. 1991 December Prescription Drugs .•+n Dental Vision Hearing Other Domestic Facility Code(s) (Hospital Groups Only) 4. Estimated Participants: 1.661 If the participants total changes by more than 10%, the renewal will be subject to change. 5. Administrative Charges: EAP__ 8.15% Employees (Estimate) A. Percent of Amounts Billed B. Predetermination - Foot Surgery C. Mandatory Second Opinion D. Case Management E. Agent Administration 6. Excess Loss Coverage(s): A. Coverage(s) Effective Specific only Aggregate Only Specific and Aggregate None Monthly Attachment Fee Employees Premium Point B. Specific Coverage C. Aggregate Coverage D. Total E. Covered Lines of Business X Blue Cross Domestic Charges1 Foreign Payments)APPlicable for Hospital Groups Only X Blue Shield Master Medical Other 1 Mahr,313-4VVIN BY: NAME: TITLE: DATE: BY: NAME: TITLE: DATE: 7. Late Payment charges/Interest: A. Monthly Late Payment Charge B. Yearly Statutory Interest Charge C. Provider Contractual Interest -2 12% Simple Intereg 8. BCBSM Account: ;840-09397-3 Comerica 2.11-Lla_E=JDatrait Wire Number Bank Address 9. Effective with your current renewal, your hospital claims cost wil reflect certain charges for provider network access, and othe subsidies as appropriate. BCBSM: THE GROUP: BY: NAME: TITLE: DATE: BY: NAME: TITLE: DATE: (Signature) (Print) (Signatukil (Print) (Signature) (Print) (Si*TiEtaiW) (Print) MMOO4WW 081' 1,005,797 , 086;?pi• $1,174,800.:• $965,988 1.2162 1 OAKLAND COUNTY CORRECTIONAL FACILITY RENEWAL PROJECTION FOR 12/94 - 1 1 /95 SURGICAL ALL COVERAG HOSPITAL MEDICAL '.COMBINE CONTRACT EXPOSURES 18,481 18,481 CLAIM CHARGES & PAYMENTS, INC 07/93-06/94, PD @08/94 $1,229,983 FACTOR: IBNR AS OF 08/94 0.1020 AMOUNT: UNREPORTED AS OF 08/94 $125,458 INCURRED CHARGES & PAYMENTS $1,355,441 . $106,713 CORP FCTR: TRND TO 12/94-11/95 1.1006 1.0571 ANNUAL TREND 1.0700 1.0400 TRENDED CHARGES & PAYMENTS $1,491,799 $112,807 $100,578 0.0610 $6,135 0974' cACTOR: HOSPITAL DIFFERENTIAL (0.4014) AMOUNT: HOSPITAL DIFFERENTIAL ($598,808) BENEFIT COSTS $892,991 $112,807 • CURRENT EXPOSURE ADJUSTMENT* 1.08 1.08 ADJUSTED BENEFIT COSTS $964,430 $121,831 AMOUNT: RETENTION (Atio) $67,267 $21,281 PROJECTED TOTAL EXPENSES $1,031,697 $143,112 ANNUAL INCOME CURRENT RATES $826,953 $139,035 INDEX TO CURRENT RATES 1.2476 1.0293 * ADJUSTS FOR INCREASE IN EXPOSURE AT 06/94 VS. AVERAGE OF 07/93-06/94 EXPERIENCE PERIOD. 'ffite Cross ---.,--• Blue Shield Ve-sar. aue Cross Blue Shield Qi IVInchgar OAKLAND COUNTY CORRECTIONAL RENEWAL COMPARISON 12/93 TO 12194 12/93 12/94 EXPOSURE (12 MONTHS) * 17,361 18,481 COMPOSITE TREND 9.52% 6.40% COMPOSITE IBNR 9.13% 9.00% HOSPITAL SAVINGS 35.20% 40.14% CLAIMS ** $900,907 $1,330,661 BENEFIT COSTS $774,127 $1,086,261 PROJECTED TOTAL EXPENSES $840,228 $1,174,808 CHANG1 6.45% —32.8% —1.4% 14.03% 47.69% 40.32% 39.82% * The experience period for 12/93 was 06/92-05/93 and the experience period for 12/94 was 07193-06/94. ** The claims experience period for 12/93 was incurred 06/92-05/93, paid 07/93 and the experience period for 12/94 was incurred 07/93-06/94, paid 08/94. CF 6439 JAN 91 12193 12/94 CHANGE 14.03% 0.3520 BlueeCross Blue Shield OAKLAND COUNTY CORRECTIONAL HISTORICAL FEES,HOSPITAL SAVINGS AND ENROLLMENT ADMINISTRATIVE FEE (PER CONTRACTI PERCENT OF PLAN YEAR CLAIMS CHANGE 12/91 11.35% .11 12/92 11.35% 0.00% 12/93 7.56% —33.40% 12/94 .:,.,.1.4u:'.-, 7.80% HOSPITAL DIFFERENTIAL COMPARISON HOSPITAL SAVINGS 12/91 — 05/94 ENROLLMENT AVVi 06/92 06/93 06/94 1,598 1,420 C 6434 JAN 91 Blue Cross Blue Shield OAKLAND COUNTY CORRECTIONAL 1995 RENEWAL OPTIONS PROJECTED PROJECTED CLAIM ADMIN TOTAL COSTS COSTS COSTS 1995 RENEWAL PROGRAM (CURRENT BENEFITS) $1,086,261 $88,547 $1,174,808 $945047 $77,021 $1,022,068 1995 PPO PROPOSAL t1PROJ. PPO SAVINGS (13%) $141,214 $11,526 $152,740i * The $4.44 represents the monthly administrative cost per contract. CF AdlOr IAN 11 December 8, 1994 FISCAL NOTE (Misc. #94331) BY: FINANCE COMMITTEE, JOHN P. McCULLOCH, CHAIRPERSON IN RE: SHERIFF'S DEPARTMENT - OAKLAND COUNTY CORRECTIVE SERVICES MEDICAL PROGRAM TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: Pursuant to Rule XI-G of this Board, the Finance Committee has reviewed Miscellaneous Resolution #9433I and finds: 1. The resolution continues the contractual relationship between the County and Blue Cross/Blue Shield to administer the Corrective Services Medical Program for the period December 1, 1994 through November 30, 1995. 2. Per the contract, the County pays for the cost incurred through hospitalization of prisoners, as well as an administrative fee of $4.44 per contract. Blue Cross estimates the 1994/1995 cost to equal $1,174,800. 3. The 1994 Budget included an appropriation of $735,000 for prisoner hospitalization; the 1994 Third Quarter Financial Forecast estimates $950,000 will be spent in 1994. 4. The 1995 Budget includes an appropriation of $808,500 for prisoner hozialLizz-t-Lon. The Blue Cross estimate will require an additional appropriation of $366,300. 5. An amendment is recommended with the 1994 Third Quarter Financial Forecast to cover the expected prisoner hnspita1i71-inn needs, including projected needs for 1995. Should that amendment be approved, any unspent 1994 prisoner hospitalization funds will be carried forward to cover the increased 1995 need. 6. The Health Benefit Consultant, Peat Marwick, will review the Corrective Services Medical Program as part of their contract with the County. It is anticipated that this review will generate recommendations to control and\or lower the cost of care for this population. FINANCE COMMITTEE E 71:0",LUTION /2--MAY L Brooks Patteritrn. County Executive Date In Testimony Whereof, I have hereunto set my hand and a County of Oakland at Pontiac, Michigan this 0th day of d the seal Resolution 494331 December 8, 1994 Moved by Obrecht supported by Pernick the resolution be adopted. AYES: Obrecht, Palmer, Pernick, Powers, Schmid, Taub, Crake, Dingeldey, Douglas, Garfield, Gosling, Huntoon, Jensen, Johnson, Kaczmar, Kingzett, Kramer, McCulloch, McPherson, Moffitt, Newby, Oaks. (22) NAYS: None. (0) A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Lynn D. Allen, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on December 8, 1994 with the original record thereof now remaining in my office. Lynnitti. Allen, County Clerk