HomeMy WebLinkAboutPR 15144: EMPLOYEE BENEFIT SOLUTIONS - CONTRACT1Y1 ~~~
To: Mr. steprien Fibgfibons, Cfiy Manages
From: Patriaa Davis, Senior Flumart Resource Analyst ~~
t2aYe: Martfi 91,2000
Re: Adoption of Proposed Resolution No. 15144 Authoriang the City Manager to fMer into a
ProT~aonai servers Cordracs wfih fnrployee Bereetrt Satutiorrs {fits) to Provide
Adrriuu~rative Services for the 2009 Retirees DN9 Subsidy {RDS) tang at a Cast of
$15,000.
1 recommend that the City Counal adopt proposed Resolution No. 15144 which authorizes the
City Manager io enter lido a prafessionai services cordrar~ wAh fmp4oyee Benefit Solutions Inc_
{EBS) to prrrvide administrative services to the City for fhe 2#109 Retirees Dnrg Subsidy filing at a
cost of $15,000.00.
Staff is recormrresrdu-g the corrtin~nce of fBS due to the tact tl-ai they trave ~ the City in
obtaining over $200,000.00 in retirees drug subsidy remr~rrsemerds for the period beginning
111106 through 10/31/08. They have proven to have the expertise to aid the City in the filing,
reporting, rrrorrtiorirg, etc of the overa9! RDS process.
Sadrarourrd-
FjFective ,fatwary 1, 20D6 itee federal goverrunerrt made available to ati Medicare efig~e
ir~iduals {adivety emp]oyed acrd retired) a prestoion drug ttenefit {Medicare PaR D). 'i'bis
pr~ram allowed individuals an opportunity to enroll wdtr the fetlerai retirees drug subsidy {RDS)
program or continue presraiptiorr dng imnel~s wdtr hisAr,er exisfmg healthcare plan_ The Centers
for Medicare arW Medicaid Services {CMS') gave em~oyers and unions a cwrrrpreher~ive set of
options to help them continue to provide high-quality prescxiption drug coverage. CMS' method
to at9aeve fihis goal ~ by o a re5ree drug subsidy that is flexile emargh 'to enable
employers an opportunity to rridain the subsidy without di~upting their canard coverage. A RDS
vrebsrte serves as a comprehensive resource cerrter for all informational and operational needs
for plan sponsors stutr as the Cfiy to irecrnne a participant in the Refirees Drug Sut>sdy program-
The City has received $69,241 in retirees drug subsidy payments for the first plan year {1/1106 -
10i31J06) arb $77,599 in retirees dnig subsidy paymerds for the secwrd plan year (11H/tt6 -
10/31t07) and $63,218 for the Uurd year {11J7107 - 10t31JD~. l; is also anlidpaied chat the City
will continue to receive retirees drug subsidy reimbrnsemerrts'in excess of $60,000 for the 2009
plan year as we0.
Given the success of services provided by Flrrployee Benefd Solutions (Ells) for the 1/1/06 -
10/31iti'8 fr~rrg periods, staff is reccararr the City accept the proposal submrli~ by
Employee Benefit Solutions inc. {fB57 who Md8 serve as the City's R0.S adrrrinisbator for Ure
2009 filing.
'Remember, we are here to serve 1i+e citizer~ of Port Arthur.'
Stephen Filzgibbon~Nlemo
pAarrh i 9, 2009
Page 2 of 2
SudcteYarvlFrsrat E#TetC
Approval of ihls recommendation would authorize expenditure of $10,000 upon engagement and
the remairang $5,000 8n APnl, 2{t09. Fundi~ 'for proposed Resolut'sDn tdo. 15144 will ~ from
Fund No. 614 - Health Insurance Fund.
St~rriaf6raDtovee Effect:
Adoption of the proposed resolution would have no impact on staffing Levels.
Summanr:
1 recommend that the City Coundl approve proposed Resolution Ivo. 15144, which authorizes the
City Manages to eater irdo a profes~onal servaces ~ntract wdh F~oyee Benefit Solutions Inc.
to provide administrative sen+~ces for the 2009 Retirees Dn~ ~bsidy Program at a ~ of
$15,000.00.
°Retnember, we are here to setae the citizen of ParF Arthur.°
P.R. No. 15144
03/10/09 - ATT/pd
RESOLUTION N0.
A RESOLUTION AUTHORIat+IG THE CITY MANAGER TO
ENTER INTO A PROFESSIONAL SERVICES CONTRACT WITH
EMPLOYEES BENEFIT SOLUTIONS INC. (EBB)
TO PROVIDE ADMINISTRATIVE SERVICES FOR THE 2009
RETIREES DRUG SUBSIDY {RDS) FILING AT A COST OF $15,000.00
FUND N0. {S): 614 -HEALTH INSURANCE RIND
BE IT RESOLVED BY THE CTfY COUNCIL OF THE CITY OF PORT
ARTHUR:
THAT, the Gty Manager of the City of Port Arthur, Texas is hereby
authorized to enter intro a professional services agreement with Employee Benefit
Solutions Inc. (EBS) to provide administrative services to the City of Port Arthur
for the 2009 Retirees Drug Subsidy {RDS~ based on individuals who are Medicare
el'igibie (active and retired) for Medicare Part D in accordance with the attached
contract describing services made part hereof as ~ibit "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 2009 filing; and,
THAT, a caption of this resolution be spread upon the minutes of the City
Counal.
P.R. No. 15144
03/10/09 - ATTJpd
Page 2 of 2
READ, ADOPTED, AND APPROVED this day of
AD, 2U09, at a Regular Meeting of the Gty Council of the
Gty of Port Arthur, by the following votes:
AYES:
Counalrrrember5
Debris Prince, Mayor
ATTEST:
Gty Sea'etary
APPROVED AS TO FORM:
J'Lfc/4 st'
{Sty A#omey
APPROVED FOR ADMINISTRATION:
Stephen B. F~trgibbons
ROV® AS TO AVAILABILITY OF FUNDS:
Director Finance
~l~-l7~1-5~3.5`~ - ov
EXHIBIT "A"
Exhibit "A"
Employee Benefit Solutions Inc.
2700 Posl Oak.6ouFevard, 25th Floor
Houston, Texas77066~578d
713:629.9666
713.629.8666 Fax
www.ebernef'rtsolutia~.corn
March 10, 2009
Patricia Davis
444 4m Street
City of Port Arthur
Port Arthur, Texas 77641
RE Retiree Dtag Subsidy (RDS) 2009
Der Pat
I am providing you with a letter outlining the scope, deliverables and cost of the ca~nsuIting services for
the retiree drug subsidy (RDS) for the plan yeaz November 1, 2008 through October 31, 2009. Our
Proposal takes into consideration the time spent on the project arrriuaIIy over the past three years as
well as the pmjected time for monthly eligibility and cost report submissions and final reconciliation.
The proposal is designed to address the primary objective which is to obtaui the retiree drug subsidy
(RDS) payable by the Centers for Medicare 6r Medicaid Services (CMSj based on individuals who are
eligible under Medicare Part D.
Scope of Services
Based on EBS' knowledge of the RDS proce% we have structured our scope of services to suPP~ ~y
of Port Arthur's needs:
Oversighk, managenrerit and quality assurance of the RDS process. This will irrclude:
- Collaboration with City of Port Arthur and BCBS to expedite RDS cost reports; and
- Developing a 2009 project plan with key activities and dmdlines.
Facilitate the prepazation of the eligibility file.
- Review and identify reasons for CMS rejectioris; and
- Upon receipt of an updated eligibility file from City of Port Arthur, prepare and submit a file to
CMS and BCBS.
PARTNHRING T'O MAKE A. DiFFERBNCE IN
Patrioa Davis
March 10, 2009
Page 2
Scope of Services (continued)
Perform quality assurance review of the cost reports produced by BCBS.
Submit the monthly RDS cost reports to Qv7S.
Coordinate the fatal RDS reconciliation reports required by CMS.
Assist City of Port Arthur with the RDS application due 7/31/09.
Fees
EBS will provide the services described ai this proposal for $15,000 for the 2009 plan year filing. In
order For EBS to provide these consulting services in 2009, City of Port Arthur must return this signed
proposal withai 15 days of receipt We request $10,00iD upon engagement and the tiamaining $5,000 in
Apn1
We cart re~evaluabe City of Port Arthur's needs regarding the RDS proce~ toward the lather part of
2009 to determine services needed for 2030 and beyond.
Tf you are in agreement with our proposed offer, please aclaiawledge your conseiit to the Proposal by
signing below where indicated and returning this letter to my attention. We have ergoyed working
with yon and your beat at City of Port Arthur and look forward to a continued relationship.
Warmest regards,
~ 6~.._~ Ro-.,~:_.
Robin D. Rankin 1ZPh. Accepted By:
Pharmacy Practice i.eader Date: _,
Copyright ®TDD9 FmplayafBemti[Sohrtions, Irm An rights raved No pmt ottlua dac®ad may be aymdnoal, eEOCed iaa~neval
syet®~ innemitled in oaf fo® by aey m®~..~~•••_:_" mahaniol or Mhswise xi~ho~rt the prior wdt0~ p®i®aa of Tmployee .
Beoefrt Sohrtiuns.Iac 0%..,