Consent Items: 5.8
Title: Consideration and possible approval to renew the agreement with CDS Group Health Third Party Administration Services for the City of Sparks.
Petitioner/Presenter: Jen McCall/Jen McCall
Recommendation: I recommend approval of the renewed Agreement with CDS Group Health Third Party Administration Services for the City of Sparks.
The proposed renewal to the current contract with CDS includes an increase in fixed rates of approximately two percent (2.67%). The City currently pays a per active member monthly fee to CDS of $99.10. This rate will increase to $103.06 per active member per month. Overall, fixed costs will increase by an annual amount of $3,531.36.
Fund: Group Insurance Self- Insurance Account: 603075
Program: Group Health Claims in Grp Health Fund - Health, Dental and Vision (050438)
Amount: $141,029.76 Budget Status: Budget Exists
Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.
Agenda Item Brief: The Third Party Administrative Contract with CDS Group Health, dated July 1, 2009 with the City of Sparks expired on June 30, 2012. Renewal of the Third Party Administrative Contract with CDS will extend the contract to and including June 30, 2013.
Background: CDS Group Health has been our third party administrator since July 1999. CDS pays medical and dental claims; administers flexible spending and health spending accounts, administers COBRA; provides utilization and case management support and has a customer service team that answers benefit related questions for our employees and retirees.
In an effort to continue doing business with the City of Sparks, CDS is offering renewal rates at a competitive fee schedule for the City. The City has received excellent support and customer service from CDS Group Health and finds their services critical to the ongoing success of the City’s self-funded
Analysis: The City currently pays a per active member monthly fee to CDS of $99.10. The amendment to the current contract with CDS includes a two percent (2.67%) increase in rates over the next fiscal period. The City of Sparks agrees to pay to CDS a service fee as indicated below based on the number of active participants covered under the plan.
• Renewal 2013 - $103.06 per member per month
CDS Service Highlights:
• 100% claims administration for medical and dental claims
• Premium billing services
• The CAREPlus Program, which handles all in-patient hospital pre-certification; weekly notification of in-patient admissions; assigned nurse from in-patient admission through discharge planning; and, physician review for medical necessity determination.
• Large case management
• COBRA administration
• Management of our flexible and health care savings accounts
• Audit and Recovery administration
• Maintains -in conjunction with United Health Network- our preferred provider organization
• Plan document assistance
In addition, CDS Group Health has supported our efforts to comply with new Federal Legislation, which will have an ongoing impact for next three (3) years.
Alternatives: The Council may choose to approve the proposed agreement as outlined by staff.
The Council may choose not to approve the proposed agreement as outlined by staff.
The Council may choose not to approve the proposed agreement as outlined by staff and direct staff toward another alternative.
Recommended Motion: I recommend approval to renew the Agreement with CDS Group Health Third Party Administration Services for the City of Sparks.
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