Sparks City Council Meeting 9/28/2015 2:00:00 PM

    Monday, September 28, 2015 2:00 PM
    City Council Chambers, Legislative Building, 745 Fourth Street, Sparks, Nevada

General Business: 9.5

Title: Consideration, discussion and possible approval to terminate the existing contract with CDS Group Health, the third party administrator for the City's Group Health Plan.
Petitioner/Presenter: Chris Syverson/Chris Syverson
Recommendation: Terminate the existing contract with CDS Group Health, the third party administrator (TPA) for the City's Group Health Plan.
Financial Impact: None
Business Impact (Per NRS 237):
    
A Business Impact Statement is not required because this is not a rule.
Agenda Item Brief:

A contract with CDS Group Health was approved by the City Council in June 2012 and became effective July 1, 2012.  The contract has mutually agreeable options to extend each fiscal year.  The Contract was extended July 1, 2015 and now continues until the end of the fiscal year, June 30, 2016.  This previously approved contract has a termination clause of 90 days notice by either party.  Please see attached CDS Group Health Contract.



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 recent months, the City has engaged in seeking proposals for services through our membership with the Nevada Business Group on Health.  This process allowed us to find significant savings through a new hospital contract with Renown, which will also provide TPA services utilizing Renown's TPA, Hometown Health.



Analysis:

Termination of this contract is required prior to engaging new service providers.

These potential contracts are addressed in a subsequent staff report.



Alternatives:

1.  The City Council may approve the motion as recommended by staff.

2.  The City Council may not approve the motion as recommended by staff.



Recommended Motion:

I move to terminate the existing contract with CDS Group Health as the city's third party administrator effective December 30, 2015.



Attached Files:
     CDS Contract 2012.pdf
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