The City of McKinney will be changing their PPO network to save the city’s health care fund a projected savings of +$2,000,000. An analysis by city staff and their insurance consultant, based on re-pricing historical claims for the past year, indicates significant savings to be gained by a change in networks.
Cigna was awarded the contract to administer the city’s self-funded plan as well as provide access to the Cigna network of providers.
See finance workshop meeting here – http://mckinney.granicus.com/MediaPlayer.php?view_id=5&clip_id=2131 – Start 53:45 End 1:02:30 (approx. 10 minutes).
Editor’s Note: PPO re-pricing methodologies are seldom accurate. Those who rely on re-pricing strategies embark on a slippery slope indeed.
Previous postings on PPO re-pricing include: http://blog.riskmanagers.us/?p=5195 http://blog.riskmanagers.us/?p=1832
