HomeMy WebLinkAboutPR 14593: EMPLOYEE BENEFIT SOLUTIONS - PROF. SERVICES CONTRACT
To: Mr. Stephen F"rtzgibbons, City Manager
From: Patricia Davis, Senior Human Resource Analyst ~~
Date: March 14, 2008
Re: Adoption of Proposed Resolution No. 14593 Authorizing the City Manager to Enter into a
Professional Services Contrail with Employee Benefit Solutions (EBS) to Provide
Administrative Services for the 2008 Retirees Drug Subsidy (RDS) Filing at a Cost of
$15,000.00
Recommendation:
I recommend that the City Counai adopt proposed Resolution No. 14593 which authorizes the
City Manager to enter into a professional services contract with Employee Benefd Solutions Inc.
(EBS) to provee administrative services to the City for the 2008 Retirees Drug Subsidy filing at a
cost of $15,000.00.
Staff is recommending the continuance of EBS due to the fact that they have assisted the City in
obtaining over $130,000.00 in retirees drug subsidy reimbursements for the period beginning
1/1/06 through 10/31/07 (past two health plan years). They have proven to have the expertise to
assist the City in the filing, reporting, monitoring, etc. of the overall RDS process.
Background:
Effeilive January 1, 2006 the federal government made available to all Medicare eligible
individuals (actively employed and retired) a prescription drug benefd (Medicare Part D). This
program allowed individuals an oppoRuntty to enroll with the federal retirees drug subsidy (RDS)
program or continue prescription drug benefits with hisRrer existing healthcare plan. The Centers
for Medicare and Medicaid Services (CMS) gave employers and unions a comprehensive set of
options to help them continue to provide high-quality prescripton drug coverage. CMS' method
to achieve this goal is by offering a retiree drug sutuidy that is flexible enough to enable
employers an opportunity to obtain the subsidy without disrupting their current coverage. A RDS
website serves as a comprehensive resource center for all informational and operational needs
for plan sponsors such as the City to become a participant in the Retirees Drug Subsidy program.
The City has received $67,131 in retirees drug subsidy payments for the first plan year (1/1/06 -
10/31/06) and $70,694 in retirees drug subsidy payments for the second plan year (11/1/06 -
10/31/07). It is also anticipated that the City will continue to receive retirees drug subsidy
reimbursements in excess of $67,000 for the 2008 plan year as well.
Given the success of services provided by Employee Benefid Solutions (EBS) for the 1/1 /O6 -
10/31/07 filing periods, staff is recommending the City accept the proposal submitted by
Employee Benefit Solutlons Inc. (EBS) who will serve as the City's RDS administrator for the
2008 filing.
"R¢xsamber, we are her¢ to serve the citisems of Port Arthur."
Mayor and Council
March 14, 2008
Page 2 of 2
Budaetarv/Fiscal Effect:
Approval of this recommendation would authorize expenditure of $10,000 upon engagement and
the remaining $5,000 divided and invoiced monthly May through July 2008. Funding for
proposed Resolution No. 14593 will be from Fund No. 614 - HeaRh Insurance Fund.
Staffino/Emplovee Effect:
Adoption of the proposed resolution would have no impact on staffing levels.
Summarv•
I recommend that the City Council approve proposed Resolution No. 74593, which authorizes the
City Manager to enter into a professional services contract with Employee Benefit Solutions Inc.
to provide administrative services for the 2008 Retirees Drvg Sutuidy program at a cost of
$15,000.00.
"Remember, we ore herffi to serve the citizerrs of Port Arthur."
P.R. No. 14593
03/14/08 - HLR/pd
RESOLUTION N0.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
ENTER INTO A PROFESSIONAL SERVICES CONTRACT WITH
EMPLOYEES BENEFIT SOLUTIONS ING. (EBS)
TO PROVIDE ADMINISTRATIVE SERVICES FOR THE 2008
RETIREES DRUG SUBSIDY (RDS) FILING AT A COST OF $15,000.00
FUND N0. (S): 614 -HEALTH INSURANCE FUND
SE IT RESOLVED BY THE CITY COUNCIL ®F THE CITY OF PORT
ARTHURe
THAT, the City Manager of the City of Port Arthur, Texas is hereby
authorized to enter into a professional services agreement with Employee Benefit
Solutions Inc. (EBS) to provide administrative services to the City of Port Arthur
for the 2008 Retirees Drug Subsidy (RDS) based on individuals who are Med+care
eligible (active and retired) for Medicare Part D in accordance with the attached
contract describing services made part hereof as Exhibit "A"and,
THAT, the City Manager is hereby authorized to expend funds from the
health insurance fund for said contract in the amount of Fifteen Thousand
Dollars ($15,000.00) for 2008 filing; and,
THAT, a caption of this resolution be spread upon the minutes of the City
Council.
P.R. No. 14593
03/14/08- HlR/pd
Page 2 of 2
READ, ADOPTED, AND APPRO!!ED this. day of
AD, 2008, at a Regular Meeting of the City Council of the
City of Port Arthur, try tt~e following votes:
AYES:
Councilmembers
Deloris Prince, Mayor
ATTEST:
City Secretary
APPROVED AS TO FORM:
/~~ ~~A~~~~~
City Attorney ( `.~a~,/~ ~ ~)
APPROVED FOR ADMINISTRATION:
Stephen B. Fitzgibbons
P ROVED AS TO AVAILABILITY OF FUNDS:
e~. '
Director Finance
Ertrpi®yee_Ben~fi4 Setcctiocu Bnc.
2700 eosl Oak $oulevard. 25th Floor
NouSton. Tezai -7705G•5784
713:629.9666
713.629.8666 Faz
EXHIBIT "A"
www. eGenc4etsoluiions.com
Mazch 10, 2008
Patricia Davis
444 4~ Street
City of Port Arthur
Port Arthur, Texas 77641
RE: Consulting Services - Retiree Drng Subsidy (RDS) 2008 Revised
Deaz Pat:
Se[Ktiaxs
Per our discussion, I am providing you with a letter outlining the scope, deliverables and cost of the
consulting services for the retiree drug subsidy (RDS) for the. plan yeaz November 1, 2007 through
October 31, 2008. Our proposal takes into consideration the time spent on the project annually over
the past two yeazs as well as the projected time for monthly eligibility and cost report submissions.
and final reconciliation The proposal is designed to address the primary objective which is to obtain
the retiree drug subsidy (RDS) payable by the Centers for Medicare & Medicaid Services (CMS)
based on individuals who are eligible under Medicaee Part D.
Scope of Seivices
Based on EBS' knowledge of the industry and the RDS process, we have structured our scope of
services to support City of Port Arthur's needs:
^ Oversight, management and quality assurance of the RDS process. 'This will include:
- Collaboration with City of Port Arthur and BCBS to expedite RDS cost reports; and
- Developing a 2008 project plan with key activities and deadlines.
^ Facilitate the prepazation of an eligibility file in accordance with BCBS' Reporting Guide.
- Review and identify reasons for CMS rejections; and
- Upon receipt of an updated eligibility file from City of Port Arthur, prepaze and submit a file
to BCBS utilizing the required RDS template.
FARTNER[NG TO MAKE A BIFFEAENCE IN EMPLOYEE BENEFITS
Patricia Davis
March 10, 2008
Page 2
® Perform quality assurance review of the cost reports produced by BCBS.
® Submit the monthly RDS cost reports to CMS.
s Coordinate the annual RDS reconc1liation reports required by CMS.
^ Assist City of Port Arthur with the RDS application due 7/31/08.
Fees
EBS will provide the services described in this proposal for $15,000 for the 2008 plan yeaz filing. In
order for EBS to provide these consulting services in 2008, City of Port Arthur must return this signed
proposal within 15 days of receipt. We request $10,000 upon engagement and the remaining $5,000
divided and invoiced monthly May through July 2008.
We can re-evaluate City of Port Arthufs needs regazding the RDS process towazd the latter part of
2008 to determine services needed for 2009 and beyond.
If you aze in agreement with our proposed offer, please acknowledge your consent to the proposal by
signing below where indicated and returning this letter to my attention We have enjoyed working
with you and your team at City of Port Arthur and look forwazd to a continued relationship.
Warmest regards,
~ ~~ R~
Robin D. Rankin R.Ph.
Pharmacy Practice Leader
Accepted By:
Date:
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