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HomeMy WebLinkAboutResolutions - 1999.12.16 - 25650MISCELLANEOUS RESOLUTION #99300 November 18, 1999 BY: Public Services Committee, Frank H. Millard, 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 hospitalization of inmates; and WHEREAS the Oakland County Board of Commissioners authorized such a program by Miscellaneous Resolution #97254; and WHEREAS the Sheriff's Department wishes to continue with this arrangement for the period December 1, 1999 through November 30, 2000; 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, 1999 through November 30, 2000. Chairperson, on behalf of the Public Services Committee, I move the adoption of the foregoing resolution. PUBLIC SERVICES COMMITTEE PUBLIC SERVICES COMMITTEE VOTE: Motion carried unanimously on a roll call vote with Galloway absent. EXHIBIT 1 GROUP: 52225 DEVELOPMENT OF FORECASTED EXPERIENCE FOR THE PERIOD: Dec 1999 - Nov 2000 1. The average number of contracts covered in the experience period May 1997 - Apr 1999: 1572 2. Total claims reported for your group in the experience period May 1997 Apr 1999: $4,990,949 3. Removal of large claims from experience period: $0 4. Addition of expected Incurred But Not Reported claims: $182,784 5. Benefits used to project expected utilization: $5,173,733 6. Annualized charges and payments: $2,586,867 7. The trended increase in claims expected for Dec 1999 - Nov 2000: $244,976 8. Addition of annualized large claims up to the Specific stop-loss limit: $0 9. Total charges and payments projected for your group during the period Dec 1999 - Nov 2000: $2,831,843 10. A credibility factor of 100% has been applied resulting in an adjustment to projected claims of: $0 11. The projected charges and payments for the new contract year Dec 1999- Nov 2000: $2,831,843 12. Less: Hospital Discount $1,508,619 13. Total projected amounts billed for new contract year: $1,323,224 14. Your new administrative fee, percent of billed amount: 8.83% [ ] Prescription Drugs [ ] Dental [ ] Vision [ ] Hearing Billed Fees 8.83% $0.00 $0.00 .0.00% Monthly Contracts 1572 Monthly Premium [ ] Specific Only [ ] Aggregate Only [ ] Specific and Aggregate [ ] Master Medical t] Other [I All Lines of Business (Aggregate Only) Aggregate: Cost Per Contract $0.00 $0 Monthly Contracts 1,572 Monthly Premium $0 SCHEDULE A - Renewal Term (Dec 1999 - Nov 2000) Administrative Servicei Contract (ASC) 1. Group Name: Oakland County Corrective • 2. Group Number/Cluster: 52225 3. Contract Effective Date: December 1, 1991 4. ASC Funding Arrangement: Monthly Wire 5. Line(s) of Business: [X] Blue Cross [X] Blue Shield [ ] Master Medical 6. Administrative Charge: A. Base Administration B. Predetermination-Foot Surgery C. Mandatory Second Opinion D. Additional Agent Fee TOTAL 7. Stoploss Coverage(s): A. Stoploss Coverage Purchased [ ] Standard [ ] Outlier Protection [X] None B. Covered Lines of Business [3 Blue Cross [ ] Blue Shield C. Attachment Point(s) (per contract) Specific: $0 D. Total Stoploss Premium Blue Cross Blue Shield of Michigan is an independent licensee of the Blue Cross and Blue Shield Association. 2% 12% 8. Late Payment Charges/Interest: A. Weekly Late Payment Charge . B. Yearly Statutory Interest Charge (Simple Interest) C. Provider Contractual Interest 9. BCBSM Account: 1840-09397-3 Comerica 0720-00096 Wire Number Bank American Bank Assoc. Your hospital claims cost reflects certain charges for provider network access, contingency, and other subsidies as appropriate. BCBSM: THE GROUP: BY: BY: (Signature) (Signature) NAME: NAME: (Print) (Print) TITLE: TITLE: DATE: DATE: • BY: . (Signature) (j . (Sigriature) NAME: P4-01.11 .fiti;-1\100 dal NAME: . (Print) (Print) TITLE: V\.-\61 _ii\.A.1%c TITLE: DATE: qi.8.qci DATE: BY: 7,919,409 180,259 4,990,949 1,500,851 58.394 GROUP 52225 - OAKLAND COUNTY CORRECTIVE .111111111.1.1111.M11.1111.1111.1M.1.11.M11.11.1111 BENEFIT AND SAVINGS REVIEW SUMMARY • Based upon the Experience period Incurred 05/1997 - 04/1999 Paid 05/1997 - 06/1999 I. Total Submitted Charges Claims Returned To Provider A. Savings From Non-Eligible Charges 1. Ineligible Members. 1,427,037 2. Benefit Exclusions 260,431 3. Duplicate Bills 334,697 4. Excess Over Maximums 12,953 5. After Filing Limitation 3.097 Sub-Total 2,038,215 B. Savings From Eligible Charges 1. Non-Participating Providers Charges Over Fee Schedule 23,159 2. Participating Provider Contracts (Hospital Not Included) 446,612 3. Coordination Of Benefits a. Benefits Covered By Medicare 3,136 b. Blue On Blue 1,436 c. Other Carriers 0 Sub-Total 474,343 C. Adjustment For Cost Sharing 1. Deductibles And Co-Payments 6,388 2. Sanctions 15.547 Sub-Total 21,935 D. Other 213,501 II. Approved Charges And Payments III. Hospital Savings IV. Customer Savings Refund V. TOTAL SAVINGS & ADJUSMENTS FOR YOUR GROUP 4,307,238 Resolution #99300 November 18, 1999 The Chairperson referred the resolution to the Finance Committee. There were no objections. FISCAL NOTE (M.R. #99300) December 16, 1999 BY FINANCE 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-C of this Board, the Finance Committee has reviewed the above referenced resolution and finds: 1. Blue Cross projections for the cost of prisoner hospitalization and surgical benefits, from December 1999 through November 2000 equals $1,440,065; 2. The County expended $2,427,390 for FY 1998 and $1,295,260 for FY 1999. The recommended budget for both FY 2000 and FY 2001 is $2,422,824. 3. Should the Blue Cross projects hold true, the budget will be reviewed and amended during the quarterly forecast. FINANCE COMMITTEE FINANCE COMMITTEE VOTE: Motion carried unanimously on a roll call vote. I HEREBY OPROVUHE FOREGOING Fr! • Date 's/e4 William Caddell, County Clerk Resolution #99300 December 16, 1999 Moved by Taub supported by Patterson the resolutions on the Consent Agenda be adopted (with accompanying reports being accepted). The Chairperson stated that General Government Committee, item a and Public Services Committee, item f were being moved to the Regular Agenda. AYES: Appel, Causey-Mitchell, Colasanti, Coleman, Dingeldey, Douglas, Galloway, Garfield, Gregory, Jensen, McCulloch, McPherson, Melton, Millard, Moffitt, Obrecht, Palmer, Patterson, Schmid, Sever, Suarez, Taub, Amos. (23) NAYS: None. (0) A sufficient majority having voted therefor, the resolutions on the Consent Agenda were adopted (with accompanying reports accepted). .1.11110.•n•111MVO.....1.1n64.0.mme/S0100n1111101 STATE OF MICHIGAN) COUNTY OF OAKLAND) I, G. William Caddell, 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 16, 1999 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 16th day,pf December, 1999.