Broken Arrow City Council
Meeting of: September 1, 2026
Title:
title
Approval of and authorization to execute all necessary renewal documents with Blue Cross Blue Shield (BCBS of Oklahoma) to provide medical insurance network and third-party administration services, effective January 1, 2027
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. Continuing to partner with BCBS will allow staff to close service gaps, and continue to provide additional add-on services to employees at no additional cost, and offer savings in overall costs.
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. A secondary plan is recommended to be added in January 2027 for non-union (general) employees which includes lower premiums with a higher deductible and higher out of pocket maximum. This will assist lower utilizing employees the option to continue to receive health insurance, at a more affordable monthly cost.
Due to the addition of the second medical plan option this year, claims are estimated to be 1.2% lower than 2026 which results in no premium increases at this time. The premium rates for each plan option for employer and employee contributions is attached.
Additionally, it is important to note our vision care benefit under the medical plan will be administered and paid as written under our previous TPA and under the city’s medical plan document. Medical benefits for physicians’ services in connection with eye refractions or any other examinations to determine the need for, or the proper adjustment of, eyeglasses or contact lenses are excluded, unless the initial examination is for cataract surgery. Radial keratotomy, LASI...
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