HomeMy WebLinkAboutPR 15768: EBS PROFESSIONAL SERVICES TO PROVIDE ADMINISTRATIVE SERVICESii~l
To: Mc Stephen Fitzgibbons, City Manager
From: Patricia Davis, Senior Human Resource Analyst ( '~G~
Date: March 1, 2010
Re: Adoption of Proposed Resolution No. 15768 Authorizing the City Manager to Enter into a
Professional Services Contract with Employee Benefit Solutions (EBS) to Provide
Administrative Services for the 2010 Retirees Drug Subsidy (RDS) Filing at a Cost of
$17,500.
Recommendation:
I recommend that the City Counal adopt proposed Resolution No. 15768 which authorizes the
City Manager to enter iMo a professional services contract with Employee Benefit Solutions Inc.
(EBS) to provide administrafive services to the City for the 2010 Retirees Drug Subsidy filing at a
cost of $17,5D0.
Staff is recommending the continuance of EBS due to the fact that they have assisted the City in
obtaining over $290,000.00 in retirees drug subsidy reimbursements since its inception in
January, 2006. They have proven to have the expertise to aid the City in the filing, reporting,
monitoring, etc of the overall RDS process.
Background
The federal government-made available to all Medicare eligible individuals (actively employed
and retired) a prescription drug benefd (Medicare Part D) Plan effective January, 2006. This
program allowed individuals an opportunity to enroll with the federal retirees drug subsidy (RDS)
program or continue prescription drug benefRs with his/her 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 prescription drug coverage. CMS' method
to achieve this goal is through offering a retiree drug subsidy 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 infomrational and operational needs
for plan sponsor, such as the City, to become a participant in the Retirees Drug Subsidy program.
The City has received $69,241 in retirees drug subsidy paymenis for the first plan year (1!1!06 -
10/31/O6; $77,599 in retirees drug subsidy payments for the second plan year (1111/06 -
10l31/07; $63,218 for the third year (11/1/07 - 1D/31/08); and $76,781 in retirees drug subsidy
payments for the fourth year (11!1/08 - 10!31!09). It is also anticipated that the Ctty will continue
to receive retirees drug subsidy reimbursements in excess of $70,D00 for the 2010 plan year as
well.
Given the success of services provided by Employee Benefit Solutions (EBS) for the 111!06 -
10/31/09 filing periods, staff is recommending the City accept the proposal submitted by
Employee Benefit Solutions Inc. (EBS) who will serve as the City's RDS administrator for the
2010 filing year.
°Rcmember, we ore here to serve the citizens of Port Arthur."
Stephen Fitzgibbons/Memo
March 1, 2010
Page 2 of 2
Budgetary/Fiscal Effect:
Approval of this recommendation would authorize expenditure of $10,000 upon engagement and
the remaining $7,SD0 in April, 2010., Funding for proposed Resolution No. 15768 will be from
Fund No. 614 -Health Insurance Fund.
StaffinglEmolovee Effect:
Adoption of the proposed resolution would have no impact on staffng levels.
Summary:
I recommend that the City Council approve proposed Resolution No. 15768, which authorizes the
City Manager to enter iMO a professional seniices contract with .Employee Benefd Solutions Inc.
to provide administrative services for the 2010 Retirees Drug Subsidy program at a cost of .
$17,500.
"Remember, we are here to serve the eitiaens of Port Arthur."
P.R. No. 15768.
03/01/10 -- ATT/pd
RESOLUTION N0.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
ENTER INTO A PROFESSIONAL SERVICES CONTRACT WITH
EMPLOYEES BENEFIT SOLUTIONS INC. (EBS)
TO PROVIDE ADMINISTRATIVE SERVICES FOR THE 2010
RETIREES DRUG SUBSIDY (RDS) FILINGAT A COST OF $17,500
FUND N0. (S): 614 -HEALTH INSURANCE FUND
BE IT RESOLVED BY THE CITY C0l1NCIL OF THE CYTY AF PORT
ARTHIiR: °
THAT, the C;ty 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 2010 Retirees Drug Subsidy (RDS) based on individuals who are Medicare
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 autfiorized to expend funds from the
health insurance fund for said contract in the amount of Seventeen Thousand
and Five Hundred Dollars ($17;500) for 2010 filing; and,
THAT, a caption of this resolution be spread upon the minutes of the City
Council.
P.R. N0. 15768
03/01/10 -- ATT/pd
Page 2 of 2
ttEAD, ADOPTED, -AND .APPROVED this day of
AD, 2010, at a Regular Meeting of the City Council of the
City of Port Arthur, by the following votes:
AYES: Mayor ,
Councilmembers
Deloris Prince, Mayor -
ATTEST:
Terri Hanks, City Secretary-
APPROVED AS TO FORM:
~/~ ~-~
Valecia Tizeno, Ci Attorney
APPROVED FOR ADMINISTRATION:
Stephen B. Fitzgibbons, City Manager
APP~R~OV/ED AS TO AVAILABILITY OF FUNDS:
~~w ~~ ~ j
Deborah Echols, Director Finance
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Mazch 1, 2010
Patricia Davis
444 4"' Street
City of Port Arthur
Port Arthur, Texas 77641
RE: RETIREE DRUG SUBSIDY (RDS) 2010
r
Dear Pat
~ ~,°z
S.~[utiarcr ~.,,
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 year November 1, 2009 through October 31, 2010. Our
proposal takes into consideration the time spent on the project annually over the past four years as well
as the projected time for monthly eligrbility 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 Medicaze,PartD.
Scope of Services
Based on EBS' knowledge of 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 BOBS to expedite RDS cost reports; and
® Developing a 2010 project plan with key activities and deadlines.
Facilitate the preparation of the eligibility file.
® Review and identify reasons for CMS rejections; and .
® Upon receipt of an updated eligibility file from City of Port Arthur, prepare and submit a file to
CMS and BCBS.
Patricia Davis
March 1,.2010
Page 2
Scope of Services (continued)
Perform quality assurance review of the cost reports produced by BCBS.
Submit the monthly RDS cost reports to CIvfS.
Coordinate the final RDS reconciliation reports required by CMS.
Assist City of Port Arthur with the RDS application due 7/31/10.
Fees
EBS will provide the services described in this proposal for $17,500 for the 2010 plan year filing.. In
ordei for EBS to provide these consulting services in 2010, City of Port Arthur must return this signed
proposal within 15 days of receipt. We request $10,000 upon engagement in Mazch and the remaining
$7,500 in April 2010.
We can re-evaluate City of Port Anhui s needs regarding the RDS process toward the latter part of
2010 to determine services needed for 2011 and beyond.
If you are in agreement with our pioposed offer, please acknowledge your consent to the proposal by
signing below where indicated and returning this letter to my attention.• We love working with you
and your beam at City of Port Arthur and look forward to a mutually beneficial relationship.
W armest regards,
~,._~ R
Robin D. Rankin RPh.
Pharmacy Practice Leader
Accepted By:
Date:
Comrrieht ®1AI0 &molovee Benefit Solutions. Tnc. All riehte reserved. No Dart of this document may be reproduced. stored in a retrieval ~'~_'=