Title
Resolution to Approve the Renewal of the City's Agreement with Flores & Associates, LLC to Provide Flexible Spending, Health Reimbursement Account and COBRA Administration to City Employees and Their Dependents and Authorize the City Administrator to Execute the Necessary Documentation
Memorandum
The attached Resolution authorizes the City Administrator to amend and renew the third party claims administration services contract with Flores & Associates, LLC ("Flores"). Employees, through their labor agreements or in accordance with the City's employee benefit plans, have the option of participating in flexible spending or health reimbursement accounts for their reimbursable health care or dependent care needs. The estimated cost of this employee benefit renewal is $350,000.
Flexible spending accounts and/or health reimbursement accounts are required by our current labor agreements and our employee benefits program. The City currently pays a monthly administrative fee per contract to Flores to process claims and track annual plan 76limits. Flores has made a five-year rate guarantee through the end of 2024; for FY20, FY21, FY22, FY23, FY24, monthly Administrative Fees per employee contract for flexible benefit plan administration will be $6.50 and for health reimbursement account administration will be $3.25. The estimated total cost for FY20 through FY24 is $350,000.
The costs for the program will fluctuate monthly depending on the number of employees enrolled in the program during any given month.
The partnership with Flores has been in place for many years. It has been a successfully administered arrangement at market competitive pricing. Proposals were solicited for COBRA services in 2016; Flores pricing was market competitive and due to the favorable relationship with Flores the City decided to hire Flores to support this administration.
The above referenced cost projections are in accordance with the approved FY20 and FY21 budget, barring...
Click here for full text