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Blue Shield of Nodh Carolina Salisbury Office December 9, 1980 Mr. Charles D. McGinnis County Manager Cabarrus County P, O. Box 707 Concord, North Carolina 28025 Dear Charles: We are pleased to submit herewith, our bid for the continuation of coverage for Cabarrus County Employees by Blue Cross Blue Shield of North Carolina in compliance with your "Invitation to Bid" dated October 27, 1980. After analyzing the most recent claims experience of both Cabarrus County Employees; Group No. 1-13-0129-001 & affiliates and Cabarrus County CETA Employees, Group No. 1-13-0114-000, we find that rates for your ~esent benefits may be reduced by 8%. These reduced rates are shown on the enclosed bid sheets and would be guaranteed from February 1, 1981 to July l, 1982. This would keep your current Rigid Anniversary date of July 1st unchanged. As requested, we have increased the Najor Hedical maximum from $250,000 in your current program to $1,000,000 in our proposed Plan 2. This is the only difference in benefits between Plans 1 and 2. We are also enclosing a Dental proposal giving detailed information pertaining to our proposed dental benefits. You will note that we have rated the dental plan two ways; one, assuming that it will be a part of your underwritten plan and secondly, assuming it will be under a Modified Retrospective Rating Agreement (MRA) which will be discussed next. Since you expressed some interest in a self-funded program during a recent meeting, we have proposed our Hodified Retrospective Agreement (MRA) and listed rates under this type contract as Plan 3 on the bidding sheet. It should be noted that benefits quoted under the MRA are substantially stronger than in your current plan. For example, under HRA, we propose to pay hospital ancillaries in full for 70 days rather than at 80%. However, to include some deterrent to unnecessary admissions, we have proposed a $100 front-end deductible. The Summary Sheet enclosed Will outline the benefits of Plan 3 under HRA. As you consider changing your program from an underwritten to a self-funded bas:is, I seriously hope you wilt afford me the opportunity to discuss the pros and cons of this action with you. In the meantime, I am listing below a few of the more significient factors in the NRA rating arrangement: 216 Statesville Blvd. c~ P. O. Box 1659 o Salisbury, N. C. ~ 704/636-3161