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County Administrator's Report 11. 29.
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| BCC Regular Meeting |
Budget & Finance Consent |
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| RECOMMENDATION: |
Recommendation Concerning Benefit Administration System - Paulette Stallworth, Interim Human Resources Director
That the Board take the following action concerning a new Benefit Administration System:
A. Approve awarding the PlanSource Statement of Services and Software as a Service (SaaS) Agreement to PlanSource for providing Web Based Benefit Services, to include a one-time implementation cost of $15,000 (120 days for implementation) and a guarantee rate per the Agreement starting when the system goes live for 36 months;
B. Authorize a Purchase Order in the amount of $250,000, for the implementation cost and monthly charges to September 30, 2020;
C. Authorize USI to contact WageWorks and ACAWise to terminate our present contracts early, on or before August 31, 2019, to end coverage as of midnight September 30, 2019; and
D. Authorize the County Administrator to sign the PlanSource Statement of Services and the Software as a Service Agreement.
[Funding Source: Fund 501, Internal Service Fund; Cost Center 150108, Object Code 53101 and 54501] |
| BACKGROUND: |
USI solicited the market for the County and received six proposals:
Business Solver Empyrean
PlanSource Web Benefits Design
BenefitExpress BenTek
USI conducted an analysis of the proposals. The four finalists were selected based on their experience successfully serving customers similar to the BCC, organizational capability to provide the stated scope of services, price per employee per month (PEPM), the capability of the vendor’s software to interface with eFin (our current payroll system), market reputation, and USI’s experience working with the vendor. Representatives from USI, BCC Human Resources and Information Technology, the Clerk of Court’s Payroll and Information Technology, were all involved in vetting process.
Presently, the payroll system supports the benefits administration for employees, retirees, and families. The payroll system is inadequate to address our requirements for the administration of programs such as COBRA, Affordable Care Act (ACA), IRS Section 125 Cafeteria Plans, etc. We have additional requirements for an accurate open enrollment module. Attached is a 6-page log of typical issues we have encountered recently with our current system.
Additionally, a dedicated Benefit Administrative System would provide access to the benefits information from home orwork, and is mobile friendly; currently employees can only access their benefits administration information from a PC at work. The proposed system will support all employees and retirees within a single system; our current system does not adequately support the management of retirees’ benefits.
The pricing model is as follows:
- Active full-time employees a cost of $8.00 PEPM (1977),
- Retirees that have either medical, dental or vision a cost of $4.25 PEPM (503),
- And retirees that only have life insurance through the county a cost of $.50 PEPM (483).
These employee and retiree numbers are subject to monthly variance which may marginally impact our cost.
The services being provided include a benefits administration website and associated software, ACA auditing/reporting and documents provided to employees, customer service call center providing benefits support, billing reconciliation services related to enrollment, COBRA compliance including documents being provided to eligible employees, dependent eligibility. Consolidating ACA auditing/reporting and COBRA services will reduce our present budget for those services by $31,000.
This purchase order addresses implementation and interface development costs. The interfaces will provide a significant improvement in the information available to employees regarding their benefits availability and usage.
In closing, the purchase of these services is necessary to adequately support the more than3,000 employees and retirees, along with their dependents, who participate in our benefit plans. Additionally, these services allow us to continue to meet our federal and state mandates regarding benefits and benefits information. |
| BUDGETARY IMPACT: |
The $250,000 comes from the savings we received from available excess premiums resulting in part from last year’s negotiated contracts for dental, health, life, and vision insurance.
Fund 501 Cost Center 150107 object code 54601 |
| LEGAL CONSIDERATIONS/SIGN-OFF: |
| The Statement of Services and Software as a Service Agreement were reviewed and approved by Kristin Hual, Senior Assistant County Attorney. |
| PERSONNEL: |
| The Human Resources Department will be the liaison with PlanSource, vendors, payroll and the IT Department during the implementation period and will communicate to the employees when the system it ready to go live. |
| POLICY/REQUIREMENT FOR BOARD ACTION: |
| N/A |
| IMPLEMENTATION/COORDINATION: |
A Purchase Order will be the instrument utilized for making payment against the Agreement.
COORDINATION WITH OTHER AGENCIES/PERSONS:
The Human Resources Department will coordinate with the County Attorney’s Office with the contract and other appointing authorities to ensure of the program implementation.
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