Broken Arrow City Council
Meeting of: September 16, 2025
Title:
title
Approval of and authorization to execute all necessary documents with Blue Cross Blue Shield (BCBS of Oklahoma) to provide medical insurance network and third-party administration services, including adoption of the Plan Document and Summary Plan Description, effective January 1, 2026
End
Background:
The City provides a comprehensive health plan for its employees and eligible dependents. Since 1989, the City’s plan has been self-insured. With this concept, the City contracts with a third-party administrator (TPA) to administer the plan and pay claims. The City has been utilizing Personify (formerly Gilsbar/HealthComp) as the plan administrator since 2022. With Personify TPA services, network utilization has been provided through HealthCare Highways, inside the state of Oklahoma, and Cigna, outside the state of Oklahoma. The City’s broker for health insurance services has gone to market to solicit proposals for network and third-party administration services for calendar year 2026 to ensure we partner with a network and TPA who operates in alignment with industry best practices, stays aware of marketplace advances, provides the most cost-effective services/discounts, and provides strong customer service and support to our employees.
Upon review by the Insurance Advisory Committee and staff (the parties), the parties were interested in reviewing alternatives to our current TPA and network service provider. The review resulted in a comparison between our current providers along with four other providers. After much consideration, discussion and research, it was determined that a move to Blue Cross Blue Shield (BCBS) as the third-party administrator, utilizing the BCBS network, was the best suited option for our health plan. Partnering with BCBS will assist staff in closing the service gaps, provide additional add-on services to employees at no additional cost, and offer savings in overall costs. The additional add-on services with BCBS include the Well on Target Member wellness portal, fitness program, blue points, 24/7 nurse line, Ovia Health, and a mental health hub.
A thorough review of claim costs, benefits, co-pays, deductibles, and claim projections have been reviewed by our Insurance Broker, staff, and the Insurance Advisory Committee with no recommended changes. The anticipated claim costs for 2026 are estimated to be higher than they have been in previous years, resulting in an increase to both the city’s premiums, and the employee’s premiums by 10%, with the exception of the FOP rates as established through their collective bargaining agreement.
|
|
City Monthly |
Pay period |
Employee Monthly |
Pay Period |
Retiree Total |
COBRA |
|
Medical Non-Wellness |
|
|
EE Only |
$1,059.00 |
$529.50 |
$70.10 |
$35.05 |
$1,129.11 |
$1,151.69 |
|
FOP Employee |
$1,105.72 |
$552.86 |
$35.74 |
$17.87 |
$1,141.46 |
$1,046.99 |
|
EE + Spouse |
$2,055.00 |
$1,027.50 |
$429.88 |
$214.94 |
$2,484.88 |
$2,534.58 |
|
EE + Child(ren) |
$1,868.19 |
$934.09 |
$390.81 |
$195.40 |
$2,258.99 |
$2,304.17 |
|
Family |
$2,335.22 |
$1,167.61 |
$488.51 |
$244.26 |
$2,823.73 |
$2,880.21 |
|
Medical Wellness |
|
|
EE Only |
$868.57 |
$434.29 |
$57.50 |
$28.75 |
$926.07 |
$944.59 |
|
FOP Employee |
$902.68 |
$451.34 |
$35.74 |
$17.87 |
$938.42 |
$957.19 |
|
EE + Spouse |
$1,685.49 |
$842.74 |
$352.58 |
$176.29 |
$2,038.07 |
$2,078.83 |
|
EE + Child(ren) |
$1,532.27 |
$766.13 |
$320.54 |
$160.27 |
$1,852.81 |
$1,889.86 |
|
Family |
$1,915.33 |
$957.67 |
$400.66 |
$200.33 |
$2,316.00 |
$2,362.31 |
Staff and the Insurance Advisory Committee recommend executing an agreement with Blue Cross Blue Shield of Oklahoma to provide medical insurance network and third-party administration services, including adoption of the Plan Document and Summary Plan Description, effective January 1, 2026.
Cost: $10,924,712 (expected annual city premiums)
Funding Source: Group Health and Life Operational Budget Fund 661
Requested By: Kelly Cox
Approved By: City Manager’s Office
Attachments: City of Broken Arrow – BPA – BCBS
City of Broken Arrow – BAA
BCBS Performance Guarantee
Recommendation:
recommend
Approve and execute necessary documents with Blue Cross Blue Shield to provide network and administrative services for medical claims to be effective January 1, 2026
end