Title
Resolution to Approve the Renewal Contract with Medicare Part D Advisors, Inc. to Fulfill Administrative and Actuarial Services to the City ($165,000)
Memorandum
The attached Resolution authorizes the City Administrator to execute the renewal contract for administrative services with Medicare Part D Advisors, Inc. Part D Advisors, Inc. receives 25% of the funds reimbursed to the City by Medicare.
Budget/Fiscal Impact: The necessary funds were appropriated as part of the FY16 approved budget through June 30, 2016 and required funding for the remainder of the contract term will be budgeted in the FY 17 budget. The estimated annual cost of this service is $110,000.
The Medicare Part D program added voluntary outpatient prescription drug benefits to the Medicare program effective January 1, 2006. Medicare pays an employer a subsidy of up to 28% of its prescription drug costs if its retirees covered under the retiree medical plan do not participate in the Medicare Part D program.
This does not adversely impact the FY16 or FY17 budgets, as the City receives a refund from Medicare and the City uses a portion of this refund to appropriate funds to pay the consultant.
The contract for this service is transitioning from a fiscal year term to a calendar year term; which will require retroactive approval of the contract term from July 1, 2015-December 31, 2015.
Staff
Prepared By: Kelly Beck, Employee Benefits Supervisor
Reviewed By: Robyn Wilkerson, Director of Human Resources and Labor Relations
Reviewed By: Mary Joan Fales, Senior Assistant City Attorney
Approved By: Tom Crawford, Interim City Administrator
Body
Whereas, The City provides retiree medical coverage to eligible retired City employees and their eligible dependents in accordance with the employee benefits program and various labor contracts;
Whereas, The Federal Government enacted a provision to the Medicare program, Medicare Part D to provide outpatient pres...
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