Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Employee Benefits Healthcare topic
No spam. Unsubscribe anytime.
Committee approves Blue Cross Blue Shield administrative contract; staff, unions asked for outreach plan
Summary
The Finance Committee approved April 7 a four‑year administrative services contract with Blue Cross Blue Shield of New Mexico to administer the city’s self‑funded health, dental and vision plans; staff said plan designs will not change.
The Santa Fe Finance Committee on April 7 approved a four‑year administrative services contract with Blue Cross Blue Shield of New Mexico to administer the city’s self‑funded employee health plan, including medical, dental and vision benefits.
Alvin Valdez, Benefits and Wellness manager, told the committee the change came after an RFP using a best‑value procurement approach and that the city’s plan design would not change under the new administrator. “At the heart of this, it’s about taking care of the people who take care of our city,” Valdez said, describing the award of the tentative contract to Blue Cross following the evaluation.
Aon actuary Trey Sarsfield presented financial projections and said the Blue Cross proposal showed lower fixed administrative costs, stronger network discounts and better Rx rebate terms relative to other offers. Aon projected a plan cost that was roughly 3–3.7% below the city’s current budgeted number; one option staff proposed would maintain the city’s budgeted employer contribution and provide employees a one‑payperiod premium holiday (medical only) worth a larger annual employee‑side savings than a 3% across‑the‑board cut.
Blue Cross vice president of account management Marlene Baca addressed network continuity and transition matters. She said Blue Cross’s statewide network includes about 97% of hospitals nationally and a high share of New Mexico providers; she said disruption was expected principally around services within the Presbyterian system in certain counties and that Blue Cross would work with the city to provide transition‑of‑care support for affected employees.
Committee members pressed staff on how many employees would see provider disruption and how the city would communicate and assist employees who might have out‑of‑network providers. Aon representative Dawn Montano said the bidder analysis showed roughly 97.7% of providers used by city members were in Blue Cross’s network; she said about 190 employees live in Bernalillo or Sandoval counties where some Presbyterian services might require special handling. The committee asked for robust outreach, 1:1 assistance and in‑person sessions during open enrollment.
A motion to approve the administrative contract passed on roll call. Committee members and unions participated in the RFP process; staff said they will provide the governing body and committee with the presentations and additional data requested during the discussion.
