Agenda Item Wording:
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Contract Approval - Authorization to enter into a five-year contract with Benefit Coordinators Corporation as the third-party administrator of the City's Health Benefits Programs.
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Deadline for Action: 11/18/2024
Submitting Department: Administration
Contact Name and Phone Number: Andrew Guzman, Risk Manager, (559) 713-4335
Department Recommendation:
Authorize staff to enter into an agreement with Benefits Coordinators Corporation (BCC) as the third-party administrator of the City's Health Benefit Programs, effective January 1, 2025. This agreement will be for a five-year term for an amount not to exceed the following:
Year 1 - $15.5 million
Year 2 - $16.2 million
Year 3 - $17.0 million
Year 4 - $17.8 million
Year 5 - $18.7 million
Background Discussion:
On January 1, 2005, the City of Visalia joined the PRISMHealth Program, a risk-sharing pool for health benefits. PRISMHealth requires its members to use one of their authorized Benefits Administrators, and at the time of joining the pool, Workterra was the only option. Workterra's responsibilities include administration of benefits enrollment, consolidated billing for the Medical, Dental, and Vision benefits, Retiree Health premium billing, and Affordable Care Act tracking and reporting for compliance purposes.
On May 22, 2024, the PRISMHealth Committee voted to terminate PRISMHealth's contract with Workterra, effective December 31, 2025. All members utilizing Workterra for admin services, including the City of Visalia, must transition to another approved PRISMHealth benefits administrator by October 1, 2025. The City's transition will be effective January 1, 2025.
Benefit Coordinators Corporation (BCC), BRMS, and Businessolver are available administrators for the PRISMHealth Program. Risk Management reviewed the three vendors and identified BCC as the best fit for the City. Risk Management reviewed the following areas of the three vendors: Fixed Costs, administratio...
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