Yolanda Baldovlnos Agency Director. May 25,2010

Transcription

1 AGENDA June 29, Alameda County Social Services Agency Yolanda Baldovlnos Agency Director Thomas L. Berkley Square 2000 San Pablo Avenue, Oakland. CA I Fax: ybaldovi2@co.alameda.ca.us May 25,2010 Honorable Public Authority Administration Building Oakland, CA Dear Public Authority Members: SUBJECT: Approval and authority for new Amendment to Agreement for COBRA Administration and ARRA Subsidy services with Employee Benefits Specialists, Inc (EBS). RECOMMENDATIONS: To comply with changes to the federal Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) and American Recovery and Reinvestment Act (ARRA) of2009, from the recently passed Department of Defense Appropriations Act, 2010 (20 10 DOD Act), it is recommended that your Board: Approve and authorize the President of the Board to sign and execute a Second Amendment to the current Agreement (Procurement # 1706, PO #6591) with Employee Benefits Specialists, Inc. (EBS), [Principal: Chimane Rhodes; Location: Pleasanton, CAl for COBRA Administration and ARRA Subsidy services in the amount of $891,500 for the period of July I, June 30, 2010, extending the current award for an additional 12 months through June 30,2011 with related fund utilizations for the extended award period SUMMARY/DISCUSSION: This letter requests action by your Board to approve and authorize an amendment to the current Standard Services Agreement contract with EBS for COBRA administration services for IHSS (In-Home Support Services) homecare workers who lose their health coverage with the Alameda Alliance Joint Powers Authority Group Care Plan. EBS is a professional third party administrator specializing in the adminislration of employee benefits plans. ARRA provides premium reductions for IHSS workers who are qualified COBRA members and are involuntarily tenuinated. Alameda County pays EBS 65% of the monthly health plan premium for eligible COBRA members, while the member pays the balance of 35%. Alameda County will continue to claim reimbursement of the subsidy from the Internal Revenue Service (IRS) in accordance with ARRA. The 20 I0 DOD Act extended the premium reduction eligibility period for two more months, from December 3 1, 2009 to February 28, 201 O. ItaIso increased the maximum periad for receivi ng the subsidy for an additional six months (from nine to fifteen months), extending the period that the subsidy can be paid to June 30, 2011, fifteen months after the last month of eligibility (February 20 I0)

2 Honorable Public Authority May 25,2010 When the law was first enacted, SSA estimated that 425 IHSS providers would opt for COBRA coverage. To date, the number of providers using the COBRA benefit remains below 70. Consequently, the funds already authorized for this contract should be sufficient to cover the costs for the requested additional year. SELECTION CRITERIA AND PROCESS: On JLme 2, 2009 (File No Item No.5), your Board approved an amendment to increase funding and extend the contract term to June 30, On July 31, 2007 (File No , Item No.7), your Board approved the current contract with EBS resultingjrom an inquiry into the Counry SLEB vendor list which verified that EBS was the only vendor thai met necessary standards and requirements/or COBRA 3rd party services and could also provide COBRA 3 nl party administrative services. EBS remains a certified SLEB vendor, # to 9/30/11. FINANCING: financing for the administrative part of this contract comes from County, State, and Federal funds in accordance with the matching fonnula for the Public Authority. The ARRA subsidy advanced by the County will be fully reimbursed quarterly by a claim to the IRS. There are no additional net County costs. Yolanda Baldovinos Agency Director Attachment: One set of 5 Standard Agreement amendment documents for Board President signature c: Auditor-Controller County Administrator County Counsel V:\BoardLetlers\20 [0\ EBS Board Letter

3 Form Rev 02/1 0 REQUEST TO ENCUMBER CONTRACT FUNDS OR TO LIQUIDATE ENCUMBERED FUNDS PART I: REQUEST FROM CONTRACTING DEPARTMENT Contractor's Name: ~E~m,-"p~lo:..Ly~ee,,-,B~e::::n~e~fi~t ~Spt<.le:::.=c~ia~li"",st""s,,-,IC!.!.n,,,,c.-\.CE~B~SJ..) _ Contractor's Tax 10: _7~7~0~-1'-.:.7 '-J~5~4...9 _ Contractor's Vendor 1D: _...:2:.::;5.,::<.06""'5<- _ Description of Contract: COBRA 3 rd Darty administration services Master Contract #: Procurement Contract #: ---'-'-=-= Procurement Contract Begin Date: July 1,2007 Ex pice Date: _-,,-J~un,,-,e,-,3o(,,:,O~).:::.20~llwC..::;e~xte~ns;u;io~n~o~n.l.l.ly,J."I, _ Elation Project Info: Sub-Contractor Compliance Labor Compliance _ Board Waiver II GSA Waiver # N/A CESS is SLEB # ) Federal Fund Waiver # _ A. ENCUMBER FUNDS IN A NEW PURCHASE ORDER Date of Board Minute Order: FiJefItem/Contract Number: Total Amount Authorized By Board: _ Amount to be Encumbered: B. ADD FUNDS TO AN EXISTING PURCHASE ORDER PO Number: -"6=59"-'1'-- _ Date of Board Minute Order: _ FilelItemlContract Number: _ Total Amount Authorized By Board: $891,500 Amount to be Encumbered: Extension only C. LIQUIDATE FUNDS FROM A PURCHASE ORDER Purchase Order Number: _ Amount to be Liquidated: _ ACCOUNTING INFORMATION Business Unit Account Fund Dept Program BY Subclass Proj/Grant Amount Total (Extension for time only) (Extension for time only) Send Response to: Diane DeVore-Famigia QIC: Phone: _-=,-5-,-,10"-,-~,,,-,6"-C7,.8~6.::::;,;33~_, Authorized Signature: ~.c=: Department: SSA Finance/Contracts Office Date: ~ PART II: RESPONSE FROM AUDITOR-CONTROLLER o The Auditor-Controller encumbered in a new PO. The PO Number is o The Auditor-Controller added to PO Number _ o The Auditor-Controller liquidated from PO Number _ o This form is being returned for you due to insufficient funds in the appropriation account. o The following information is needed before this request can be processed. Signature of Contract Processor _ Date:

4 SECOND AMENDMENT TO AGREEMENT This Second Amendment to Agreement ("Amendment") is made by the Public Authority For In-Home Supportive Services in Alameda County ("Contract Holder") and Employee Benefits Specialists, Inc, ("EBS") with respect to the fee-far-service agreement entered into by EBS and the Contract Holder on July 1,2007, referred to herein as the "Contract", pursuant to which EBS, Inc. provides Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) 3 rd party administration services. For valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Contract Holder and EBS agree to amend the Agreement in the following respects: 1) The tenn of this Agreement is currently due to expire on June 30, As of the Effective Date of this executed Second Amendment, the term of this Agreement is extended from July 1, 2010 through June 30, ) The currently approved total award for FY is $ 526,500. As of the Effective Date of this executed Second Amendment, the award total for FY is changed to $217,500. Administrative costs remain at the currently approved $42,500. The FY ARRAJCOBRA funding is changed from the current $484,000 to $175,000. The currently approved Award Total (multiple fiscal years) of $891,500 remains unchanged through June 30, ) Effective July 1,2010, approve and authorize funding levels for FY 10/11: $42,500 for administrative services; $266,500 for ARRAICOBRA; award total for FY 10/11 of $309,000. These costs are also within the currently approved Award Total of $891,500. In Summary (changes in bold): AdmIn/Services ARRAICOBRA Award Total FY 08/09 $42000 $ $365,000 FY 09/10 $42,500 $175,000 $217,500 FY 10/11 $42,500 $266,500 $309,000 Total $ $764,500 $891,500 4) Exhibit A-2 (attached) reflects the amended dates and extended premium reduction eligibility period for eligible COBRA members from the Department of Defense Appropriations (DOD) Act, Except as otherwise amended by Exhibit A-2, all terms and conditions remain intact and in force for Exhibit A. Page 1 of3

5 5) Exhibit B-2 (attached) reflects the current and FY 2010/20 II funding amowlts and any additional changes in individual administrative costs and services under the ARRA subsidy and 2010 DOD Act. Except as othelwise amended by Exhibit B-2, all terms and conditions remain intact and force for Exhibit B. 6) Except as expressly modified by this Second Amendment, all of the terms and conditions of this Agreement are and remain in full force and effect. 1) DEBARMENT AND SUSPENSION CERTIFICATION: a. By signing this Amendment and Exhibit D, Debarment and Suspension Certification, Contractor agrees to comply with applicable federal suspension and debarment regulations, including but not limited to 7 Code of Federal Regulations (CFR) , 28 CFR 66.35, 29 CFR 97.35,34 CFR 80.35,45 CFR and Executive Order b. By signing this agreement, Contractor certifies to the best of its knowledge and belief, that it and its principles: 1. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntary excluded by any federal department or agency; 2. Shall not knowingly enter into any covered transaction willi a person who is proposed for debarment Wlder federal regulations, debarred, suspended, declared ineligible, or voluntarily excluded from participation in such transaction. Page 2 of3

6 IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the Agreement as of the day and year first above written. PUBLIC AUn-rORITY for IN-HOME SUPPORTIVE SERVICES IN ALAMEDA COUNTY EMPLOYEE BENEFITS SPECIALISTS, Inc. By: Signature Alice Lai-Bitker Name: --;...=='-=--=---='-="==---- (Printed) Title: President ofthe Board, The Public Authority For In-Home Supportive Services in Alameda County _ By: I -- t~~. Signatur.e Name: C:t \,YYA OL }S'\'\AAeS (Printed) Titl~G0~cL l):~,l"cw1 Date: ~~vtd \<6 20 I 0 \ \ I Approved as to FOI1l1: By signing above, signatory warrants and represents that he/she executed this Agreement in hislher authorized capacity and that by hislher signature on this Agreement, he/she or the entity upon behalf of which he/she acted, executed this Agreement Page30f3

7 2 nd AMENDMENT EXHffiIT A-2 DEFINITION OF SERVICES 1. ARRA provides for premium reductions under the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly called COBRA. Eligible individuals pay only 35 percent of their COBRA premiums and the remaining 65 percent is reimbursed to the coverage provider through a tax credit. The premium reduction applies to periods of health coverage beginning on or after February 17, 2009 and lasts for up to fifteen months for those eligible for COBRA during the period beginning September 1,2008 and ending February 28, 2010 due to an involuntary termination of employment that occurred during that period. (ARRA was amended on December 19,2009 by the Department of Defense Appropriations Act, 2010.) 2. Alameda County will, effective March 1,2009, pay EBS the subsidy of 65% of the monthly health plan premium for eligible COBRA members. The member will pay the balance of35%. Alameda County will claim reimbursement of the subsidy from the Internal Revenue Service (IRS) in accordance with ARRA and the regulations and amendments thereof. AJ EBS will make a request for the County's 65% of COBRA premium costs by invoicing Alameda County. The unit costs on the invoice will represent the number of individual COBRA elections under the subsidy program. B] EBS will then forward the 65%, along with the worker's 35%, for a total of 100% of premium costs to all carriers. C] EBS is acting as a pass through administrator for receipt and forwarding of COBRA premiums from the IHSS worker (35%) and Alameda County (65%). Once 100% of the premium costs are received, EBS will forward the entire premium to the insurance carriers. 0] EBS will never "front" any premium costs for either the worker's 35% contribution or the County's 65% contribution. They will simply receive the premium contributions from both the worker and the County and then forward the entire amount (100%) to the carriers for coverage. E] EBS will never forward the County's 65% subsidy contribution to carriers without having received it ftrst from Alameda County. Timely invoice payment by Alameda County is critical in this regard. Members may face termination if premium subsidy amounts are not received by EBS from the County within the time required by all carriers. 2 nd Amendment to the Contract. Exhibit A-2

8 3. EBS will comply with the federally required notification provisions in COBRA and ARRA. Upon release from the Department oflabor, EBS will send an initial ARRA notification letter to all terminated individuals (voluntary and involuntary). 4. Upon notification, all individuals currently not emolled in COBRA will have 60 days to elect new coverage. 5. All individuals listed will need to be assigned as involuntary or voluntary. Verification of individual's assigned status will be confirmed by the individual member. 6. EBS will submit (2) invoices to The Public Authority: 1] for COBRA administration fees, including those workers who are eligible to continue COBRA under the ARRA subsidy 2] for 65% subsidy billing. Invoicing process is as follows: Invoice #1: EBS will generate a bill for all administrative services pertaining to a member continuing on COBRA under the ARRA subsidy listed in chart below. The unit cost will represent the number ofihss workers who can be appropriately billed for that line item service. Once the invoice is received by The Public Authority, the Operations Manager will review the invoice and approve the unit costs based on our knowledge of the number ofworkers who should receive a particular notice, based on the data files sent by The Public Authority to EBS each month. Invoice #2 (ARRA 65% subsidy): EBS will generate a bill for 65% ofthe total premium cost for any IHSS worker who continues their health benefits via COBRA during the subsidy period. Once the invoice is received by The Public Authority, the Operations Manager will review the invoice and approve the unit costs based on our knowledge of the number ofworkers who are continuing their benefits via COBRA under the ARRA subsidy, as provided to us byebs. 7. The PA will forward both invoices to the County along with an invoice cover sheet, which the PA will complete, containing the following infonnation: The County's procurement number, TfN number, PO number, accounting stream and authorized signature from The Public Authority. 8. A single Purchase Order will be established for this contract, including the ARRA subsidy and the COBRA administration fees. The accounting streams are as follows: Administrative Services: COBRA CARRA) payments: nd Amendment to the Contract, Exhibit A-2

9 9. EBS' administration of the ARRA subsidy will include the following: I. COBRA ElectionINotification Letters - mailed via US Mail (Initial notices or re~prints due to incorrect or incomplete information that is not caused by BBS' action or inaction) 2. Premium Billing, Collection, and Premium Remittance to the Carriers - billing employer's portion for ARRA subsidy 3. Rate Change Notification 4. Monthly Administration 5. Coupons for rate changes due to late notice of fee changes, retroactive fee changes or any other issue that is not a result of EBS' action or inaction. 6. *Note: other fees may apply as American Recovery and Reinvestment Act (ARRA) 0[2009 requirements become clear (and any other related legislative acts such as the Department of Defense Appropriations Act, 20 JO~ any new requirements and fees will be quoted as soon as the information is available 7. Any service requests for items not specifically addressed above 3 2 nd Amendment 10 the Contract, Exhibit A-2

10 2 nd AMENDMENT EXHIBIT B-2 PAYMENT TERMS 1. County will pay Contractor upon successful completion and acceptance of the following services listed in Exhibit A-2, within thirty (30) days or less, upon receipt of invoice. 2. EBS will make a request for the County's 65% COBRA premium costs contribution/subsidy by invoicing Alameda County. Invoices will be approved flrst by The Public Authority and submitted to the County for payment on a RUSH basis (see Exhibit A-2, #2E). 3. Effective as of the date of the executed Second Amendment, the currently approved award of $526,500 for FY 09/10 is reduced to $217,500. Administrative costs remain at $42,500 and the ARRAfCOBRA costs were reduced from $484,000 to $175, FY 10/11 administrative services are $42,500 and ARRAICOBRA costs are $266,500 for a total of$309,000, approved from July 1,2010 through the extended date ofjune 30,2011. The current award total of $891, remains unchanged through June 30, 2011: Admin/Services ARRAICOBRA Award Total FY 08/09 $42,000 $323,000 $365,000 FY 09/10 $42,500 $175,000 $217,500 FY 10/11 $42,500 $266,500 $309,000 TOTAL $127,000 $764,500 $891, Upon notice to proceed from County, Contractor shall perform in accordance with the following schedule for individual administrative costs related to continuing via COBRA under the ARRA subsidy: 2 nd Amendment to the Contract, Exhibit 8-2

11 II. COBRA Administration fees COBRA ElectionINotification Lettersmailed via US Mail (Initial notices or re-prints due to incorrect or incomplete infonnation that is not caused by EBS' action or inaction) Initial Notification Letter for New Hires Premium Billing, Collection, and Premium Rem ittance to the Carriers - billing employer's portion for ARRA subsidy Rate Change Notification Fee Minimum Monthly Administration Fee (only applies if less than 13 employees on COBRA) Coupons for rate changes due to late notice of fee changes, retroactive fee changes or any other issue that is not a resu It of EBS' action or inaction. *note other fees may apply as American Recovery and Reinvestment Act of2009 requirements become cleat (and any other related legislative acts such as the Department of Defense Appropriations Act, 20 10) - any new requirements and fees will be quoted as soon as the infonnation is available Any service requests for items not specifically addressed above will be quoted upon request. $15.00 per active ARRA (subsidy) COBRA participant per month QE letters $10.00 per letter $2.75 per letter Included in monthly administration fee $3.50 per letter $ per month minimum fee + 2% of participant premium $8.50 per coupon packet of 12 months or less depending on employees COBRA tenn date Work will begin as of the date agreed upon in writing for all quoted services. 2 nd Amendment to the Contract, Exhibit B-2

12 EXHIBIT D COUNTY OF ALAMEDA DEBARl\1ENT AND SUSPENSION CERTIFICATION The contractor, under penalty of perjury, certifies that, except as noted below, contractor, its principles, and any named or unnamed subcontrador: Is not currently under suspension, debarment, voluntary exclusion, or determination of ineligibility by any federal ageocyj Has not been suspended, debarred, voluntarily excluded or determined ineligible by any federal agency within the past three years; Does not have a proposed debarment pendingj and Has not been indicted, convicted, or had a civil judgment rendered against it by a court of competent jurisdiction in any matter involving fraud or official misconduct within the past three years. Ifthere are any exceptions to this certification, insert the exceptions in the following space. Exceptions will not necessary result in denial of award, but will be considered in determining contractor responsibility. For any exception noted above, indicate below to whom it applies, initiating agency, and dates of action. Notes: Providing false information may result in criminal prosecution or administrative sanctions. The above certification is part of the Standard Services Agreemcnt. Signing this Standard Services Agreement on the signature portion thereof shall also constitute signature of this Certification. CONTRACTOR: _~E::::m=pl:.::<o:..I-Y.=::;ee:::...:.::B;.:::;e~ne::;.;:fi.:..lt~s.,:,:S:.J:::p.=::;ec::;.;:i~al~is~t"",s,...::;I.:.,:.nc:::..:. _ I )