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City OKs employee health insurance contract

May 12, 1999|By DAN KULIN /Staff Writer

Hagerstown City Council members voted 5-0 on Tuesday to approve two separate one-year contracts, one each for city employee health and dental insurance coverage.

The health insurance contract with Rockville, Md.-based Mid-Atlantic Medical Services Inc. (MAMSI) costs the city about $2.1 million.

That is about $300,000 above the cost of the current health insurance contract with CareFirst Blue Cross Blue Shield.

The MAMSI contract was the least expensive of three proposed contracts, including one from Blue Cross Blue Shield, according to city contract documents.

Kim Kautz, city benefits coordinator and a member of the committee that reviewed insurance proposals, described the MAMSI insurance contract as comparable but not identical to the current insurance coverage.

The MAMSI contract is about $51,000 less expensive than anticipated in city budget projections.

The dental insurance contract with CareFirst Blue Cross Blue Shield, in Owings Mills, Md., is costing the city $106,876.

The new contract is about $7,000 more expensive than the current dental insurance contract, which also is with Blue Cross Blue Shield, according to Austin Abraham, the city's acting human resources manager.

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The Blue Cross Blue Shield dental insurance contract was the least expensive contract offer among the four companies that submitted a proposal to the city, according to city contract documents.

City employees, retirees and their families are eligible for the coverage.

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