The URL can be used to link to this page

Home My WebLink AboutResolutions - 1997.12.11 - 24975November 20, 1997 MISCELLANEOUS RESOLUTION 197254 BY: Public Services Committee, Shelley G. Taub, Chairperson IN RE: Sheriff's Department -Oakland County Corrective Services Medical Program To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS the Sheriff's Department has had a medical program with Blue Cross\Blue Shield for haspitali7ation of inmates; and WHEREAS the Oakland County Board of Commissioners authorized such a program by Miscellaneous Resolution #96290; and WHEREAS the Sheriff's Department wishes to continue with this arrangement for the period December 1, 1997 through November 30, 1998; 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 Sheriff's Departments 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 THEREFORE BE IT RESOLVED 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, 1997 through November 30, 1998. Chairperson, on behalf of the Public Services Committee, I move the adoption of the foregoing resolution. PUBLIC SERVICES COMMIT EE OAKLAND COUNTY CORRECTIONAL DECEMBER 1997 - NOVEMBER 1998 RENEWAL October 13, 1997 AGENDA RENEWAL WORKSHEET HISTORICAL FEES, SAVINGS AND ENROLLMENT HISTORICAL CLAIMS COST COMPARISON INPATIENT/OUTPATIENT COST COMPARISON RENEWAL COMPARISON EXCESS CLAIMS SCHEDULE A 22-Sep-97 SURGICAL comaiNED:: HOSPITAL MEDICAL COVERAG CONTRACT EXPOSURES CLAIM CHARGES AND PAYMENTS INC 05/96 - 04/97, PD © 06/97 18,979 18,979 $ 2,396,366 $ 285,770 FACTOR: IBNR AT 06/97 0.0560 AMOUNT: UNREPORTED AS OF 06/97 $ 134,196 0.0540 $ 15,432 INCURRED CHARGES AND PAYMENTS $ 2,530,582 $ 301,202 CORPORATE TREND TO 12/97 - 11/98 1.0803 ANNUAL TREND 1.0500 TRENDED CHARGES AND PAYMENTS $ 2,733,766 1.0319 1.0200 $ 310,810 FACTOR: HOSPITAL DIFFERENTIAL AMOUNT: HOSPITAL DIFFERENTIAL (0.4700) $ (1,284,870) $ (1,284,870): 4— INDEX TO CURRENT RATES 1.1148 OAKLAND COUNTY CORRECTIONAL RENEWAL PROJECTION FOR 12/97 - 11198 $ 1,448,898 $ 310,810 AMOUNT: RETENTION $ 88,884 $ o3.119 PROJECTED TOTAL EXPENSES $ 1,537,780 $ 373,929 ANNUAL INCOME AT CURRENT RATES $ 1,379,394 $ 316,380 1.1819 BENEFIT COSTS ADMINISTRATIVE FEq. OA PERCENT° ADMINISTRATIVE FEE PER CONTRAt 1 12/95 12/96 *Actual 8.64% 8.64% $ 122,472 * $ 143,253 OAKLAND COUNTY CORRECTIONAL HISTORICAL FEES, SAVINGS AND ENROLLMENT ADMINISTRATIVE FEE PERCENT PLAN YEAR OF CLAIMS PROJECTED ADMIN HOSPITAL DIFFERENTIAL COMPARISON 12/97 12196 CHANGE 0.4700 0.4631 1.50% BCBSM SAVINGS 12191-07/97 Hospital $ 4,002,319 Surgical/Medical $ 688,554 4, Total Savings . $ 4,690,870: ENROLLMENT 06/97 06/96 06/95 1,563 1,515 1,01 1112.11:11=11 COST PER CONTRACT OAKLAND COUNTY CORRECTIONAL HISTORICAL CLAIMS COST COMPARISON MONTHLY CLAIMS COST PER CONTRACT $87.38 12/93-11/94 12/94-11/95 12/95-11/96 YEAR 12/96-07/97 • 12/96-07/97 Represents 8 months worth of available data. $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 s- Ct Lli • e: en w 3 C.3 OAKLAND COUNTY CORRECTIONAL HISTORICAL CLAIMS COST INPATIENT/OUTPATIENT (Facility Costs Only) INPATIENT COSTS ('' $53.91 . 115.25 T 22.41 7 $44.04 $32.36 $38.18 12/93-11/94 12/94-11/95 12/95-11/96 YEAR OUTPATIENT COSTS 12/96-07/97 $18.00 ce $16.00 LLI n. 1- $14.00 § 0. $12.00 in a g $10.00 3 z $8.00 €.) 0 $6.00 $4.00 ▪ $2.00 S- 7- $16.07 _ ....._ - , $13.68 _ . ... _ 17.47 "40 0 II° IIII 11111 V T F 1.1 MI $11.16 12/93-11/94 12/94-11/95 12/95-11/96 12/96-07/97 YEAR EXPOSURE (12 MONTHS)* COMPOSITE TREND (ANNUAL) HOSPITAL SAVINGS RENEWAL COMPARISON 12/97 TO 12196 12/97 12196 AIL/VG 18,979 ..mmo 4.45% 47.00% 48.31% 18,678 5.20% 1.61%. :49% $1,911,709 824 0.52 1485 0.95 PROJECTED MONTHLY COST PER CONTRACT $ 100.73 17.71% 85.57 OAKLAND COUNTY CORRECTIONAL CLAIMS (CHARGES/PAYMENTS)** $2,682,136 $ 2,232,129 2046% BENEFIT COSTS PROJECTED TOTAL EXPENSES BLUE CROSS CASES CASES PER CONTRACT BLUE SHIELD CASES CASES PER CONTRACT $1,759,707 $ 1,479,973 $ 1,598,281 877 0.56 1,811 1.14 18.90% =ma 19.61% 4.04% 4.14% 21.95% 20.00% The exposure period for 12/97 was 05196-04/97. The exposure period for 12196 was 06195-05196. ** The claims experience period for 12/97 was incurred 05/96-04197, paid through 06197. The claims experience period for 12/96 was incurred 06/95-05/96, paid through 07/96. runnAnt; TrA14,4UA BLUE CKOSS AND BLUE SHIELD Of MICHIGAN - COMBINED COVERAGE EXPERIENCE EXCESS CLAIMS REPORT INCURRED 05/96 - 04/97, MICH. PAID 05/96 - 06/97 GROUP 52225 - OAKLAND COUNTY CORRECTIVE FACILITY PAID BY: ALL PLANS COMBINED SIZE CATEGORY COMBINED PAYMENTS SC PAYMENTS BS PAYMENTS MM PAYMENT 1 CONTRACT $ 0- 4999 530,436.43 410,446.19 119,790.24 0.00 505 $ 5000•• 9999 351,687.27 294,541.46 57,145.81 0.00 50 $ 11000- 14999 174,033.74 147,338.55 26,695.19 0.80 14 $ 15000-- 19999 49,891.01 44,614.65 5,276.36 0.00 3 $ 20000- 24999 135,826.30 111,874.60 23,951.70 0.00 6 $ 25000- 29999 54,248.97 46,034.53 8,206.44 0.00 2 • 30000- 34999 66,735.07 53,645.32 13,089.75 0.00 2 $ 35000- 39999 0.00 0.00 8.00 0.00 0 $ 4111100.. 44999 40,465.30 32,801.59 7,663.71 0.80 1 • 45000- 49999 0.00 0.00 0.00 0.00 I $ 50800- 54999 0.00 0.00 0.00 0.00 0 $ 55000 59999 8.00 0.00 0.00 0.00 I $ 60000- 64999 0.00 0.00 0.00 0.00 0 6 65000- 69999 0.08 0.00 0.00 0.00 0 0 70000- 74999 0.00 0.00 0.00 0.08 0 $ 75008- 79999 0.00 0.00 0.00 0.00 0 $ 80000- 84999 0.00 0.00 0.00 0.80 0 $ 85000- 89999 88,816.54 44,859.75 23,956.79 0.00 1 $ 90000- 94999 0.00 0.00 0.00 0.00 0 $ 95000- 99999 0.00 8.00 0.00 0.08 0 0100000•104999 0.08 0.80 0.00 0.00 0 0105000-109999 0.00 0.00 0.00 0.00 0 $110000•214999 0.00 0.00 0.00 0.80 0 0115000-119999 8.00 0.00 0.08 8.00 0 0128000124999 0.00 0.00 0.00 0.08 0 0125000-129999 0.00 0.00 0.00 •.•0 0 0130000-134999 0.00 8.00 0.00 0.00 0 0135000-139999 0.00 0.00 0.00 8.00 0 0140000-144999 0.00 0.00 0.00 0.00 0 0145000-149999 8.00 0.00 0.00 8.00 0 0150000-154999 0.00 0.00 0.00 0.00 0 0155000-159999 0.00 0.08 0.00 OAS 0 $160000.-164999 0.00 8.00 0.00 0.00 0 $165000-169999 0.00 0.00 0.00 0.00 0 $170000-174999 0.00 0.08 0.00 0.00 0 *175000-179999 0.80 0.00 0.04 0.04 0 01808W184999 0.00 0.00 0.00 0.08 0 0185000-189999 0.00 0.00 COO COO 0 $198010-194999 8.00 0.08 0.00 8.00 8 0195000-199999 0.00 0.00 0.00 0.00 0 0288000-284999 0.00 0.00 0.80 0.00 0 0205000.-209499 0.00 0.00 0.00 OAS 0 *210008-214999 0.010 0.00 0.00 0.08 0 $215008-219999 0.00 0.00 0.00 0.10 0 $220000.-224999 0.00 0.00 0.00 0.10 0 *225000-229999 0.00 0.00 0.00 0.08 II 0230000-234999 0.00 0.00 0.00 0.00 0 4235000-239999 0.08 0.00 0.00 0.00 0 0240090+ 0.00 0.00 0.00 8.00 0 ALL RANGES 01,492,152.63 01,206,356.64 0285,775.99 00.00 584 MICHIGAN AND NATIONAL SUPPORT SYSTEMS •-• RUNE 88/89/97 TIME E 2E55 PM DC PAYMENTS 21,102.27 27,741.10 24,932.26 25,904.22 64,859.75 32.801.59 197,341.19 BS PAYMCNTS 4,003.26 4,430.15 4,203.18 81659.60 23,956.79 7,663.71 52,916.69 MM PATIENTS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 ebtiNAtit: YYAC12DA2 BLUE CROSS AND BLUE SHIELD OF MICHIGAN - COMBINED COVERAGE EXPERIENCE EXCESS CLAIMS WORKSHEET GROUP 52225 - OAKLAND COUNTY CORRECTIVE FACILITY PAGE: I PAID BY: ALL PLANS COMBINED INCURRED 05/96 - 04/97, MICH. PAID 05/96 - 06/97 GROUP CONTRACT mum Numg COMBINED PAYMENT/ 52225 282683963 25,105.53 52225 375545781 32,171.25 52225 376708260 29,135.44 52225 385367649 34,563.82 52225 424587960 88,816.54 52224 460462570 40,465.31 TOTALS 250,257.88 EXCESS PORTION (OVER 0?5.000.00) 105.53 7,171.25 4,135.44 9,563.82 63,816.54 15,464.30 100,257.88 TOTAL EXCESS PORTION LOB PERCENT OF COMBINED PAYMENTS LOB DISTRIBUTION OF EXCESS PORTION 100,257.88 X 78.86% 079,063.36 100,257.88 $ 21.14% 021,194.52 100,257.88 'X •.00% 80.00 MICHIGAN AND NATIONAL SUPPORT SYSTEMS - RUN: 08/09/97 - TINE: 2:35 PN •le Fee 5. Administrative Charges: Employees (Estimate) A. Percent of Amounts Billed B. Predetermination - Foot Surgery C. Mandatory Second Opinion D. Case Management E. Agent Administration 8.64% 6. Excess Loss Coverage(s): A. Coverage(s) Effective: Specific Only Aggregate Only Specific and Aggregate None SCHEDULE k- ReneWal Term (12197 - 11/981 Administrative Services Contract. Monthly Wire Between Blue Cross and Blue Shield or Michigan and Oakland County Corrective Facility 1. Contact Effective Date: December 1, 1991 2. Renewal Term: December 1, 1997 - November 30, 1998 3. Line(s) of Business: • X Blue Cross Prescription Drugs Domestic* Dental Foreign Vision X Blue Shield Hearing Master Medical Other ••nn•••nn *Domestic Facility Code(s) (Hospital Groups Only) 4. Estimated Participants: If the participants total changes by more than 10%, the renewal will be subject to change. 1,613 Monthly Attachment Fee Employees Premium Point B. Specific Coverage C. Aggregate Coverage $ D. Total E. Covered Line(s) of Business for Excess Loss: X Blue Cross Domestic Charges - applicable for hospital groups only Foreign Payments - applicable for hospital groups only X Blue Shield Master Medical Other 7. Late Payment Charges/Interest: 1 1 A. Weekly Late Payment Charge 2% B. Yearly Statutory Interest Charge 12% Simple Interest Signature Signature By: Name: Title: Date; By: Name: Date: Oakland County Corivctive Facility Schedule A - Renewal Term (12/97 - 11/98) Monthly Wire Page Two 8. BCBSM Account: 0726-00096 ABA Routing Number 1840-09397-3 Comerica 211 W. Fort, Detroit Wire Number Bank Address 9. Hospital claims cost will reflect certain charges for provider network access and other subsidies as appropriate. a BCBSM THE GROUP By: By: Signature Signature Name: Name: Title: Title: Date: Date: Resolution #97254 November 20, 1997 The Vice Chairperson referred the resolution to the Finance and Personnel Committee. There were no objections. FISCAL NOTE (M.R. #97254) December 11, 1997 BY: FINANCE AND PERSONNEL COMMITTEE, SUE ANN DOUGLAS, 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 XII-F of this Board, the Finance and Personnel Committee has reviewed the above referenced resolution and finds: 1) Blue Cross projections for December, 1997 through November, 1998 for hospital and surgical benefit costs are $1,759,706. 2) Total expense for FY 1997 (nine months) was $1,416,492. The recommended budget for both FY 1998 and FY 1999 is $1,700,000 and a budget amendment is not recommended at this time. 4) The issue of prisoner health costs is currently under review, while a proposal to engage a consultant to study the jail health issue has been released and will be reported at a later date. FINANCE AND PERSONNEL CO ITTEE Resolution 497254 December 11, 1997 Moved by Taub supported by Fracassi the resolution be adopted. AYES: McPherson, Millard, Moffitt, Powers, Schmid, Taub, Wolf, Amos, Coleman, Dingeldey, Douglas, Fracassi, Garfield, Holbert, Huntoon, Jacobs, Jensen, Johnson, Kingzett, Law, McCulloch. (21) NAYS: None. (0) A sufficient majority having voted therefor, the resolution was adopted. FOr7r.TGOING RESOLUION 7 on. Cow,/ Executive Date ..........._____ 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 11, 1997 with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 11th day of December 1997. "zwirl5t Allen, County Clerk