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ABC Company
2017 Marketing Summary of Medical Administrative Services
Blue Cross/Blue Shield of Florida (Florida Blue) has provided medical administrative services
for ABC for ten years. 2016 ASO fixed costs (inclusive of HRA fees, H.S.A.s fees, Rx integration
fees and broker fees) are estimated to be $6,769,021.
Florida Blue provides $140,000 per year to ABC in Wellness Funds. The net fixed costs for ABC
are approximately $6,841,709 for 2016.
The 2017 fixed costs in year 1 are approximately $6,672,751 and Florida Blue will offer $365,000
in Wellness Funds per year. Net fixed cost for 2017 would be $6,307,751.
Florida Blue can offer My Health Essentials Engagement Suite, as an alternative to Health
Fitness, for a cost of $952,186 vs. $1,212,053.
Bids were solicited from Aetna, Cigna and United Healthcare. All carriers are providing
competitive offers with fixed cost savings
2016 Florida Blue ASO Fees
$6,981,709
Wellness Fund Credit
-$140,000
Current Net Fixed costs
$6,841,709
2017 – 2019 ASO Bids
Florida Blue
Aetna
Cigna
United Healthcare
Year 1 ASO Fees
$6,672,751
$6,098,813
$5,522,397
$4,920,571
Difference to
current year
-308,958
-882,896
-$1,459,312
-$2,061,138
3 Year Total ASO
$20,018,254
$18,296,439
$16,567,191
$14,761,714
3 Year
Fund/Credits
-$1,095,000
-$900,000
Opt 1: -$900,000
*Opt 2: -$1,500,000
-$1,400,000
Net Fixed Costs
over 3 years
$18,923,254
$17,396,439
Opt 1: $15,667,191
*Opt 2: $15,067,191
$13,361,714
*
Cigna
: In order for ABC to qualify for the $1.5M Fund/Credits, they would need to purchase the
enhanced Disease Management program and Cigna’s Personal Health Team for an additional spend of
$892,674
**All fees are inclusive of transparency tools
vs Healthcare Bluebook’s additional cost of
$347,151
Run Off Claims Processing Fees
Florida Blue:
Fees for Run-Out have been Waived
Aetna:
Fees for Run-Out have been Waived
Cigna:
No Charge for Run-out
United Healthcare
Fees include 6 months of Run-out; $28,764 for an additional 6 months.