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Home My WebLink About000177.tiff r r- r r- r r r r r ,fi Shirazi & Associates Financial Planner•Benefit Consultant•Insurance Broker 177 /� Shirazi & Associates, Inc. 1770 25th Avenue, Suite 302 • P.O. Box 5315 • Greeley, Colorado 80631 • (970) 356-5151 • FAX (970) 356-5154 November 11, 1996 Mr. Donald Warden, Director of Finance Weld County 915 10th Street Greeley, CO 80631 Dear Don: As I have shared with you previously, your group life insurance utilization has been running very high the past few years. As you know, last year utilization was exceptionally high. Based on _ your experience Hartford originally asked for basic rate increase from $.32 per thousand to $.46 per thousand. I am pleased that we were able to go back to the underwriters and negotiate with them. Hartford has agreed to renew your Basic Life at a rate of$.37 per thousand for the upcoming plan year, because of the long term relationship they have with Weld County. The dependent life, supplemental life and Accidental Death and Dismemberment coverage will remain at the present rate. Below is a breakdown of your present and renewal rates: Coverage Inforce Rate Renewal Rate Negotiated Rate Basic Life $.32 / $1,000 $.46 / $1,000 $.37 / $1,000 "- Basic AD&D $.030/ $1,000 $.030 / $1,000 N/A Dep. Life $.71 / Unit $.71 / Unit N/A Supp. Life Step Rated Continue in force N/A If you recall a couple of years ago we shopped the market for your life insurance and although the experience was better at that time, we were not able to find a lower rate. At this time, as we have discussed, we may want to wait until the experience begins to improve before we look at other alternatives. However, if you would like me to shop the market on behalf of Weld County, I would be more than glad to do so. Don, thank you again for the opportunity to be of service to you and Weld County. If there are any questions or concerns, please feel free to call. Sincerely, asoud S.S. Shirazi MSS/vs Financial Planner • Benefit Consultant • Insurance Broker GROUP HEALTH INSURANCE �� Shirazi & Associates, Inc. 1770 25th Avenue, Suite 302 • P.O. Box 5315 • Greeley, Colorado 80631 • (970) 356-5151 • FAX (970) 356-5154 November 11, 1996 Mr. Donald Warden, Director of Finance Weld County 915 10th Street Greeley, CO 80631 Dear Don: I would like to take this opportunity to thank you for allowing me to serve and assist you and Weld County in your employee benefit program. Our partnership with Weld County is very important to me and the responsibilities attached I readily accept. Enclosed is a brief summary of the items we have been discussing over the past two to three weeks regarding your group health insurance coverage. I've included rates and a summary of benefits from different carriers. At the present time 95% of your employees are covered under the HMO plan with only 5% _ covered under the PPO plan. So it is very important that we retain coverage with a company that offers an HMO plan with a strong network. We also felt that if we were going to switch from FHP to another carrier, it is very important that we receive a rate guarantee of at least two years, or a rate cap for at least three years. The companies that we felt would fulfill your needs and we requested proposals from were as follows: FHP - Present Carrier Cigna Mutual of Omaha Blue Cross Blue Shield Prudential United Health Care Cigna declined to quote as they felt their rates were not competitive in the Greeley area. Prudential is currently marketing their Point of Service plan only, although it is their intention to start marketing their HMO product sometime the beginning of 1997. Enclosed you will find a summary of proposals from FHP, United Health Care, Mutual of Omaha and Blue Cross Blue Shield. We will go over the details of each of the plans in our meeting and answer any questions or concerns that you may have. Don, I have enjoyed working with you over the past several years and I look forward to assisting you and Weld County for many years to come. Sincerely, Masoud S. Shirazi WELD COUNTY Renewal Summary Effective January 1, 1997 FHP Health Care MEDICAL BENEFITS: HMO Maximum Benefit $Unlimited Emergency: Emergency Room $50 Copayment Dr's Office / Urgent Care $25 Copayment Office Visits: Dr's Office $10 Copayment After Hours $25 Copayment Hospital Admission $100 Copayment Out Patient Surgery $50 Copayment Prescription Drugs $5 Copayment Ambulance $25 Copayment MEDICAL BENEFITS: PPO(Low Deductible) PPO NonPPO Lifetime Maximum Benefit $2 Million $2 Million Office Visit Copayment $15 n/a Emergency Room Copayment (Life Threatening) $50 n/a Individual Deductible $150 $150 Family Deductible $300 $300 Coinsurance 80-20% 80-20% Individual Max Out of Pkt.* $1,150 $1,150 Family Max Out of Pkt.* $2,300 $2,300 Prescription Drug Copayment $5 Generic 80-20% $8 Brand MEDICAL BENEFITS: PPO (High Deductible) PPO NonPPO Lifetime Maximum Benefit $2 Million $2 Million Office Visit Copayment $20 n/a Emergency Room Copayment (Life Threatening) $50 n/a Individual Deductible $500 $500 Family Deductible $1,000 $1,000 Coinsurance 80-20% 60-40% Individual Max Out of Pkt.* $2,500 $4,500 Family Max Out of Pkt.* $5,000 $9,000 Prescription Drug Copayment $5 Generic 60-40% $8 Brand 1 _ 1997 RATES Current Renewal HMO Employee $153.08 $157.67 Dependent $269.42 $277.50 Family Total $422.50 $435.17 PPO (Low Deductible) Employee $252.07 $251.67 Dependent $438.27 $437.57 Family Total $690.34 $689.24 PPO (High Deductible) Employee $196.97 $196.97 Dependent $342.46 $341.60 Family Total $539.43 $538.57 NOTE: _ For the 1998 Plan Year, FHP HealthCare has agreed to a maximum increase for the HMO of 3% and a maximum increase for the PPO of 9%. _ For the 1999 Plan Year, FHP HealthCare has agreed to a maximum increase of 6% for the HMO and a maximum increase of 10% for the PPO. 2 WELD COUNTY Health Plan Proposal Blue Cross Blue Shield of Colorado — POS MEDICAL BENEFITS HMO HMO NonHMO CUSTOM PLUS _ Lifetime Maximum $Unlimited $Unlimited $1 Million $1 Million Office Visit Copayment $10 $10 n/a n/a Preventive Care Copayment $10 $10 Not Covered Not Covered Emergency Room Copayment $50 $50 n/a n/a Hospital Admission Copayment $100 $100 n/a n/a Outpatient Surgery Copayment $25 $25 n/a n/a Individual Deductible n/a n/a $250 $200 Family Deductible n/a n/a $500 $400 Coinsurance n/a n/a 70-30% 80-20% Individual Max Out of Pkt.* n/a n/a $2,750 $1,200 Family Max Out of Pkt.* n/a n/a $5,500 $2,400 Prescription Drug Copayment $5 $10 $10 $10 'For allowable covered charges including deductible and coinsurance. [RATES HMO ! POS Custom Plus Employee $141.37 $148.74 $187.33 Dependent $233.40 $245.42 $309.10 Total Family $374.77 $394.16 $496.43 NOTE: Blue Cross Blue Shield of Colorado has guaranteed these rates for a two-year period, January 1, 1997 through December 31, 1998. They have also agreed to a third year rate cap. The rates will increase no more than 5% on the HMO, 6% on the Point of Service and 8% on the Custom Plus for the plan year January 1, 1999 through December 31, 1999. 3 WELD COUNTY Health Plan Proposal Mutual of Omaha Exclusicare POS PPO (MEDICAL BENEFITS! HMO Network NonNetwork PPO NonPPO Lifetime Maximum $Unlimited $Unlimited $1 Million $1 Million $1 Million Office Visit Copayment $10 $10 n/a 80-20%* 60-40%* Preventive Care Copay $10 $10 Not Covered 80-20%*Not Covered Emergency Room Copay $50 $50 n/a 80-20% 60-40% Hospital Admission Copay $100 $100 n/a 80-20% 60-40% Outpatient Surgery Copay $50 $25 n/a 80-20% 60-40% Individual Deductible n/a n/a $500 $500 $500 Family Deductible n/a n/a $1,000 $1,000 $1,000 Coinsurance n/a n/a 70-30% 80-20% 60-40% _ Individual Max Out of Pkt.** n/a n/a $3,500 $2,500 $2,500 Family Max Out of Pkt.** n/a n/a $7,000 $5,000 $5,000 Prescription Drug Copay $8 $10 Not Covered $8 6040%* *Subject to deductible. **For allowable covered charges including deductible and coinsurance. RATES Exclusicare POS PPO Employee $143.99 $153.34 $186.32 Dependent $239.27 $254.83 $309.61 Total Family $383.26 $408.17 $495.93 NOTE: Mutual of Omaha has guaranteed these rates for a two-year period, January 1, 1997 through December 31, 1998. 4 WELD COUNTY Health Plan Proposal United Health DUAL CHOICE Choice Plus MEDICAL BENEFITS HMO** Network** NonNetwork Lifetime Maximum $Unlimited $Unlimited $1 Million Office Visit Copayment $10 $15 n/a Preventive Care Copayment $10 $15 Not Covered Emergency Room Copayment $50 $50 $50 Hospital Admission Copayment $0 $250 n/a Outpatient Surgery Copayment $10 $50 n/a Individual Deductible n/a $0 $500 Family Deductible n/a $0 $1,500 Coinsurance n/a n/a 70-30% Individual Max Out of Pkt.* n/a n/a $3,500 Family Max Out of Pkt.* n/a n/a $10,500 Prescription Drug Copayment $5 Generic $5 Generic Not Covered $10 Brand $10 Brand *For allowable covered charges including deductible and coinsurance. Copayments do not count toward out of pocket maximums. **Open access HMO allows you to self-refer to a specialist within the network,and still have network benefits. RATES HMO Choice Plus Employee $153.95 $163.33 Dependent $260.35 $276.20 Total Family $414.30 $439.53 NOTE: _ United Health has agreed to a one-year rate guarantee. 5 Hello