Preferred Health Choices_Administrative Services Amendment VTHE CITY OF
Dui
E
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Administrative Services Amendments - Preferred Health Choices LLC
DATE: November 7, 2012
Dubuque
kital
All- America City
11 111!
2012
Due to the increased complexity and amount of time involved in administering the
COBRA Notice process, collecting COBRA premiums and distributing the certificates of
credible coverage, Personnel Manager Randy Peck asked Health Choices, the City's
third party administrator for the medical plan, to present a proposal to provide these
services. The estimated annual cost for Health Choices to provide these services would
be between $1,800 and $2,000.
The Health Care Committee and Personnel Manager Randy Peck recommend City
Council approval to increase the administrative services fee from $20.10 to $20.15 per
contract per month; to approve Amendment V of the Administrative Services Agreement
with Health Choices to provide COBRA administration, payment collection and
distribution of the certificates of credible coverage services; and authorize the City
Manager to sign the amendment.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
hrilit44 krt.,709,
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Randy Peck, Personnel Manager
Masterpiece on the Mississippi
TO:
FROM:
SUBJECT:
DATE:
Michael C. Van Milligen, City Manager
Randy Peck, Personnel Manager
COBRA Notice Administration
November 5, 2012
Dubuque
had
All-AmedcaClly
11111
2007
Due to the increased complexity and amount of time involved in administering the
COBRA Notice process, collecting COBRA premiums and distributing the certificates of
credible coverage, I asked Health Choices, our third party administrator for the medical
plan, to present a proposal to provide these services. The estimated annual cost for
Health Choices to provide these services would be between $1,800 and $2,000. The
Health Care Committee recommends that the amendment be approved. I support the
committee's recommendation.
The requested action is for the City Council to pass a motion to increase the
administrative services fee from $20.10 to $20.15 per contract per month; to approve
Amendment V of the Administrative Services Agreement with Health Choices to provide
COBRA administration, payment collection and distribution of the certificates of credible
coverage services; and to authorize you to sign the attached amendment.
RP:Imh
Amendment V
Administrative Services Agreement
Whereas, the City of Dubuque and Preferred Health Choices have mutually agreed to certain
administrative services as listed in the Administrative Service Agreement dated July 1, 1999 and as
amended; and
Whereas, effective , 2012, said Agreement is hereby amended as follows:
The terms agreed to in Amendment IV shall remain in force except as noted herein; point 3 shall be
added to Attachment D as follows:
"3.
COBRA and Early Retiree Administration /Issuance of Certificates of Credible Coverage
Initial Setup Fee: $100.00
Annual Renewal Fee (Year 2 and after) $100.00
Initial Notice Fee (upon enrollment in
City of Dubuque Medical /Rx Plan) $ 5.00
Notification Fee upon Termination $ 12.00
Per electing COBRA /Retiree /month $ 8.00*
Minimum monthly charge $ 35.00
Certificates of Credible
Coverage issued to each
Terminating Participant under
Purchaser's Plan /month **
$ 0.05 /employee covered
* Said fee shall be waived on ACH Withdrawals administered by Purchaser.
**
The agreed upon Administrative Services fee listed in Amendment IV shall be adjusted
from $20.10 to $20.15 to accomplish this change in compensation."
Accepted on behalf of the City of Dubuque:
Signed:
Date:
Michael C. Van Miiligen, City Manager
Accepted on behalf of Preferred Health Choices, LLC:
Signed:
Date:
Thomas P. O'Brien, Executive Director
H: \Health Choices \City of Dubuque\Administrative Agreements - Amendments \City of Dubuque Amendment V.docx