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HomeMy WebLinkAbout2011-390 HR - Flexible Benefit Administrators, Inc. to administer federally mandated Cobra benefits At-39O Flexible Benefit Administrators, Inc. ADMINISTRATIVE SERVICES AGREEMENT— COBRA/HIPAA This Agreement, which shall be effective on the day of 1st day of January, 2012, has been entered between Orange County, a political subdivision of the State of North Carolina, with principal offices at 200 E. Margaret Lane, Hillsborough, North Carolina 27278 (hereinafter referred to as Client) and FLEXIBLE BENEFIT ADMINISTRATORS, INC., a Virginia Corporation whose mailing address is Post Office Drawer 2070, Virginia Beach,Virginia 23450(hereinafter referred to as FBA). This Agreement shall be for a period of one year beginning on the effective date set forth above (the "Anniversary Day'). This Agreement will renew automatically for additional periods of one year on the same terms, covenants and conditions unless FBA receives written notice from Client of Client's desire not to renew at FBA's address appearing above not less than sixty (60) days prior to the next effective Anniversary Day following the conclusion of the year period then in effect, or unless FBA notifies Client in writing not less than sixty (60) days prior to the next effective Anniversary Day of its intent not to renew the Agreement. Client desires to have FBA provide administrative and clerical functions related to Client's compliance with Health Care Coverage Continuation provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985(COBRA)and the Health Insurance Portability and Accountability Act of 1996(HIPAA). 1. In consideration for the fees and charges listed below, FBA hereby agrees to perform the following administrative and clerical functions: a. Sending of required notices to current COBRA Participants and all Principal Qualified Beneficiaries (PQBs), once instructed to do so by Client via COBRA QUALIFYING EVENT NOTIFICATION for Medical, Dental, Vision, EAP and FSA for COBRA Events. FBA will prepare one Enrollment packet with two enrollment forms. One enrollment form will be for Medical only to be returned to FBA and the other enrollment form for the remaining plans to be returned directly to Orange County. b. Communicating with PQBs by mail and/or telephone regarding COBRA coverage. c. Billing, Collecting and Reporting of Premiums for COBRA Medical Only. d. Reporting enrollees to Client for COBRA Medical Only. e. Reporting terminations to Client for COBRA Medical Only. f. Per Clients request, FBA will not send Initial Notification/Department of Labor Letters to recently hired active employees at the time of their initial enrollment in the group benefit plan. g. Per Client's request, FBA will not send Global Rights Notification to all currently insured employees to inform them of all COBRA/HIPAA rights. h. If applicable, FBA will send notification of Disability Extension of eleven additional months of coverage to disabled COBRA participants for COBRA Medical Only. i. If requested by Client, FBA will send notification of Open Enrollment Period. j. If requested by Client, FBA will provide Additional HIPAA Certificates up to 24 months after participation for COBRA Medical Only. 1 2. The functions do not include amending and republishing the Client's benefit plan document or booklets. 3. In order for FBA to execute its functions, Client agrees to comply with the COBRA requirements concerning the complete and timely filing to FBA of COBRA QUALIFYING EVENT NOTIFICATIONS. 4. FBA agrees to comply with ongoing notice requirements within fourteen (14) days of receiving each completed COBRA QUALIFYING EVENT NOTIFICATION. 5. FBA further agrees to account for collected premiums by: a. Placing collected premiums in FBA's premium account b. Providing Client with a report by the 30"' of the month of a premium reporting month detailing premiums collected. c. Forwarding to Client by the 30"' of the month of the premium reporting month a check drawn on FBA's Premium Account for all net premiums collected during the Premium Reporting Month. 6. FBA will report to Client on a monthly basis all new COBRA enrollees in Medical (those who have elected to receive coverage) and all terminations. It is FBA's responsibility to communicate these additions and add terminations to Client's insurer or benefit plan administrator. 7. FBA will advise Client of all law or regulation changes affecting COBRA. 8. Client agrees to pay FBA administrative fees in accordance with FBA's FEE SCHEDULE. Bills are issued on the last day of each month and payments should be received on or before the 15"'of the month after the invoice was prepared. Failure to pay fees when due may result in FBA unilaterally terminating this Agreement after 30 day grace period. The FEE SCHEDULE in effect as of the effective date of this Agreement is set forth as part of this Agreement. 9. FBA will use ordinary care and due diligence in the exercise of its power and in the performance of its responsibilities. Client agrees that FBA is not assuming the title and liabilities of "Administrator" or "Plan Administrator" defined by the COBRA or ERISA law. Client agrees that this responsibility is and remains that of the Client. FBA shall not be liable under this Agreement unless its actions are in negligent, malicious, or willful and wanton disregard for the Agreement. FBA agrees to hold Client harmless resulting from any and all dishonest, fraudulent, or criminal acts of FBA or its employees acting alone or in collusion with others. The Client agrees to hold harmless and to indemnify,to the extent allowed under North Carolina Law, FBA, its officers, directors, and employees against any and all claims, denials, suits, settlements, judgements, costs, penalties, attorney's fees, and expenses, if awarded by a court of proper jurisdiction resulting from or arising out of any action or omission on the part of Client in connection with any function of this Agreement or in connection to any claim for benefits under any plan administered through this Agreement. 10. Client agrees to complete a Flexible Benefit Administrators NEW CLIENT PROFILE FORM and agrees that this form will provide the basis of FBA's Administrative Actions. Changes to this form may only be made in writing and are only effective when acknowledged by FBA in writing. 2 f 11. FBA shall maintain Professional Liability insurance for administration of the Plan within limits of liability up to nine million dollars covering the errors and omissions of FBA, its employees, agents, servants, and associates. 12. Miscellaneous. This Agreement constitutes the complete agreement of the parties regarding its subject matter and replaces and supersedes any prior written or oral agreement between the parties regarding its subject matter. No representations or warranties have been provided by any party to this Agreement to be governed by and constructed in accordance with the laws of the State of North Carolina. This Agreement may not be modified or amended except by means of a writing clearly identifying itself as a modification or amendment of this Agreement and which is signed by all parties to this Agreement. The Agreement is executed in multiple counterparts, each of which shall constitute an original, but all of which together comprise but a single Agreement. The captions of this Agreement and its paragraphs and subparagraphs are for the convenience of the parties only and shall not be taken into account in the construction and interpretation of this Agreement. All parties hereby acknowledge that they have read this Agreement in its entirety and have,to the extent which they deemed necessary, consulted with counsel before executing this Agreement. This Agreement is binding upon and shall inure to the benefit of heirs, executors, successors, and assigns of the parties hereto. This Agreement and the rights, privileges, and responsibilities of the parties hereto may not be assigned by any party hereto. All personal pronouns used in this Agreement,whether used in the masculine,feminine,or neuter gender, shall include all other genders, the singular may include plural, and vice versa as the context may require. The terms of this Agreement can be severed: should any portion of this Agreement be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement and this Agreement shall be construed and interpreted as though such invalid or unenforceable provision was not contained herein. This Agreement is performable in the State of North Carolina. 13. Any notice required by this Agreement shall be in writing and delivered by certified or registered mail, return receipt requested to the following: Orange County Flexible Benefit Administrators, Inc. Attention: Human Resources Director Attention: G.L. "Lanny Browning", III P.O. Box 8181 P.O. Drawer 2070 Hillsborough, NC 27278 Virginia Beach,VA 23450 Notice shall be deemed duly served upon its deposit in a repository of the United States Postal Service according to the requirements of this section. The parties of this Agreement consent and agree to all of the provisions and by their signature cause this Agreement to become effective on the date above noted. SIGNATURE PAGE TO FOLLOW 3 Signatures: Presentation and acceptance of this agreement through electronic communication will be effective to bind the parties to the same extent as if the parties affixed written signatures to a printed document. For: Ora Co my For: Flexible Benefit. Administrators,Inc. Signatur Sign�atture Uf ee Ctr`PSi� Title Title 12 1 21 I ZD I Date Date This instrument has been approved as to technical content. 4Karine Cathey, Department Director This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. U"ko A &U� Office of the Finance Director This instrument has been approved as to form and legal sufficiency. ice of the County Attorney