Title
Resolution to Approve the Renewal Contract with Medicare Part D Advisors, Inc. to Fulfill Administrative and Actuarial Services to the City and to Authorize the City Administrator to Execute the Necessary Documentation
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. keeps a percentage of the funds reimbursed to the City by Medicare.
Budget/Fiscal Impact: This does not adversely impact the FY2017 budget and will not adversely impact the FY2018 budget, as the City receives a refund from Medicare, from which the consultants will receive their fees. Further, receipt of the subsidy has a favorable impact for the City for GASB 45 purposes.
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.
Staff
Prepared By: Jessica Hull, Employee Benefits Supervisor
Reviewed By: Robyn Wilkerson, Director of Human Resources and Labor Relations
Approved By: Howard S. Lazarus, 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 new provision to the Medicare program, Medicare Part D to provide outpatient prescription drug benefits effective January 1, 2006;
Whereas, The City-provided benefit is more generous than that offered under Medicare Part D;
Whereas, Medicare will pay employers a subsidy to have retirees not participate in the Part D program;
Whereas, Receipt of the subsidy will have favorable financial impact to the City with respect to GASB 45 di...
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