HomeMy WebLinkAbout2012-441 Human Resources - Mark III Brokerage, Inc. for Consulting & Brokerage Services Contract for Consulting & Brokerage Services
Between Orange County and Mark III Brokerage, Inc.
THIS AGREEMENT made the 1st of January, 2012 between Orange County, a political
subdivision of the State of North Carolina whose primary address is at 200 S. Cameron
St, Hillsborough, NC 27278 and Mark III Brokerage, Inc., a North Carolina Corporation
whose business address is 211 Greenwich Road, Charlotte, North Carolina 28211.
Orange County has agreed to contract with Mark III Brokerage as the consultant for the
Health Insurance and broker for all core and voluntary products effective January 1,
2012 to December 31, 2013. Thereafter,the contract is renewable on an annual basis.
Responsibilities of Mark III Brokerage:
1. Mark III Brokerage will act as the consultant for medical plan for Orange County.
2. Mark Ill's responsibilities include:
Below are the services and cost for our medical plan consulting:
Medical Plan Marketing and Evaluation Services- Mark III has the expertise to
market and evaluate the medical plan. We will perform the following functions:
a. Specification Preparation
With the guidance and assistance from Orange County, Mark III will
prepare specifications that give the carriers/vendors an accurate
assessment of your existing health insurance; including census, claims
activity, current plan design, and requested plan designs. The
specifications outline your concerns and goals.
b. Marketing the Specifications
Mark III will contact the qualified carriers and vendors to determine their
interest in evaluating your medical plan. Carriers/vendors that express
an interest are sent the specifications to obtain a response. Mark III is
responsible for gathering the responses from the qualified
carriers/vendors.
c. Evaluate the Responses
Once all proposals are received, Orange County and Mark III will narrow
down the most competitive carriers/vendors based on, but not limited to,
the following criteria:
1. Quality of Care provided to the employees and their dependents.
2. Sound financial status of the firm.
3. Outstanding service, including but not limited to, strong client service
support, home office underwriting, contracts and legal service
departments, claims processing, and related customer service.
4. Networks, which provide excellent access to hospitals and physicians
in the locations where employees reside. Carriers/vendors will
complete a Provider Access Report (Geo-Access Report) using the
criteria designated which will provide complete coverage for your
employees.
S. Managed care expertise.
6. Competitive rates or fee structure.
7. Future stability of rates/fees.
8. Providing comprehensive experience reports to the client so that an
evaluation can be made relative the plan performance.
9. Carrier flexibility when plan design changes are necessary to meet the
needs of the employees and the employer.
10. Provides quality ongoing service and a service team that is dedicated
to solving problems that arise during the plan year.
11. An ongoing employee education program to assist the employees'
understanding of the plan's operation.
12. The flexibility to expand the network to cover new employees.
Mark III will provide a comprehensive evaluation, giving a side-by-side
comparison of each vendor's offer.
Q finalists are given the opportunity to make presentations to Orange County.
the staff the chance to ask questions and evaluate the carriers based
on t responses. We have taken a long-term approach when creating a
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relationship with the employer and your satisfaction with the programs that are
implemented will always be imperative.
During the plan year we track the claims to look for trends and monitor the
service level of the vendor. Prior to the client receiving the renewal from the
carrier/vendor, Mark III will evaluate the initial experience and develop our
renewal, separate of the carrier/vendor. Once Mark III has completed our initial
evaluation, we will meet with the client to discuss our initial assessment.
At the renewal meeting, we will compare our estimates against the
carrier/vendor's using the following criteria:
a. Claims activity.
b. Competitiveness of the carrier's reserving philosophy. This will be
determined by comparing their assumptions to industry norms.
c. Competitiveness of the carrier's retention. This will be determined by
comparing their costs to industry norms.
d. Changes in the demographic composition of the client and how that
has changed over time. How these demographics (manual rate)
impact the renewal.
e. How competitive/aggressive the carrier is when weighing the manual
rate vs. the experience rate or visa versa.
f. Industry trending factors.
Based on the initial results of our meeting and how satisfied Orange
County/Mark III is with the renewal, will determine the next step. If the renewal
is competitive and there is not a significant financial or benefit change that is
required, no action would be taken. If the response from the carrier/vendor
were uncompetitive, then further negotiation would take place. If a satisfactory
response from the carrier/vendor does not occur, then Mark III would market
the plan in question to see if a more competitive offer can be attained from
other qualified vendors.
Mark III will provide budget projections throughout the plan year,to help
Orange County plan for financial considerations.
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Responsibilities of Orange County(known as the employer):
1. Orange County agrees to support Mark III Brokerage's efforts to collect
information necessary to bid the various employee benefits programs. This
information would include census and payroll information.
Wellness Planning and Implementation:
Mark III will bring its experience and knowledge of the market place with respect to
assisting Orange County in implementing a Wellness Program.
The goals are to:
• To positively impact the health of the population.
• Design and implement an integrated health and wellness program.
• Drive member engagement and responsibility for their health.
• Provide tools and incentives that result in healthy behaviors.
• Positively influence change in the health care utilization based on demonstrated
results.
• Strategies can include:
o Premium differentials and other financial incentives.
o Employee clinics and pharmacies.
o Screenings and Biometrics.
o Health risk assessments.
o Asheville Projects style pharmacy programs.
The cost for these strategies will vary based on resources and situational
implementation costs.
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Contract Terms:
Mark III will provide all the services above for: Zero—until December 31, 2011;
$1.00 per subscriber per month (January 1, 2012 to December 31, 2012)--2nd
Year;
3rd Year. Included is health care consulting services year round, analysis,
strategic planning, and wellness planning.
Flexible Spending Account administrative fees will be paid by Mark Ill.
Core Products: Dental,Group Life,Vision: By negotiation
Voluntary Products: Fixed as filed with NCDOI
Both parties can terminate the contract with 60 days prior written notice.
Notices:
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 Mark Ill Brokerage, Inc.
Attention: Human Resources Director Attention:
P.O. Box 8181 211 Greenwich Road
Hillsborough, NC 27278 Charlotte, NC 28211
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.
Disputes:
Any and all suits or actions to enforce, interpret or seek damages with respect to any
provision of, or the performance or non-performance of, this Agreement shall be
brought in the General Court of Justice of North Carolina sitting in Orange County, North
Carolina. It is agreed by the parties that no other court shall have jurisdiction or venue
with respect to such suits or actions. The Parties may agree to nonbinding mediation of
any dispute prior to the bringing of such suit or action.
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Orange County
Signed:
By:
Gj
Date:
Mark III Brokerage, Inc.
Signed: --��
Date: o- ,
I
This instrument has been approved as to technical content.
r � ,
Katherine Cathey, Department DUector
This instrument has been pre-audited in the manner required by the Local Government
Budget and Fiscal Control Act.
Ual-4'1 �.. A A14--
Office of the Finance Director
This instr been approved as to form and legal sufficiency.
ice of the CountV Attorney
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LIFE INSURANCE AGENTS AND BROKERS
ISSUED BY ERRORS AND OMISSIONS LIABILITY
UTICA MUTUAL INSURANCE COMPANY DECLARATIONS POLICY
P.O.BOX 530,UTICA,NEW YORK 13503 CLAIMS-MADE BASIS
TELEPHONE"(800)274-1914 RENEWAL POLICY
NAMED INSURED AND MAILING ADDRESS LOCATION ADDRESS
MARK III FINANCIAL GROUP
211 GREENWICH ROAD
CHARLOTTE NC 28211
AT 12:01 A.M. STANDARD TIME AT THE ADDRESS OF THE INSURED AS STATED HEREIN. IN RETURN FOR
PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS POLICY WE AGREE WITH YOU TO
PROVIDE THE INSURANCE AS STATED IN THIS POLICY.
POLICY PERIOD
Y—NUMBER
FROM
3634638 EO 11/08/2010 11/08/2011 3634638 EO
BASIC POLICY COVERAGE LIMITS OF LIABILITY
LEGAL LIABILITY $ 2,000,000 EACH LOSS
$ 6,000,000 EACH AGGREGATE
INSUREDS DEDUCTIBLE AMOUNT $ 5.000 EACH LOSS
$ 15,000 AGGREGATE
DEDUCTIBLE APPLIES TO: Z LOSS ONLY
❑ LOSS AND LITIGATION EXPENSE
PREMIUMS
BASIC POLICY PREMIUM $ INCLUDED
FINANCIAL PRODUCTS PREMIUM $ NIA (See attached endorsement for details)
MUTUAL FUND AND VARIABLE ANNUITY PREMIUM $ _ N/A (Sae'attached endorssment1ordeWls)
PROPERTY& CASUALTY PRODUCTS PREMIUM $ N/A (See attached endorsement for details)
SUB-AGENTS PREMIUM $ N/A (See attached endorsement for details)
TOTAL POLICY PREMIUM $ 10,481.00
All Policies Subject to$500.00 Minimum Premium
RETROACTIVE DATE
This insurance does not apply to loss, whenever occurring, from "wrongful acts" which took place before the
Retroactive Date, if any, shown below:
NONE
Enter Date or"None" if no Retroactive Date applies
OPTIONAL EXTENDED REPORTING PERIOD PREMIUM
In Section VII - EXTENDED REPORTING PERIODS, we agree to provide an Optional Extended Reporting Period
under certain conditions. The premium for such an Optional Extended Reporting Period is determined as shown in
paragraph 5. Of Section VII.
FORMS AND ENDORSEMENT$ APPLYING TO AND.MADE PART OF THIS POLICY AT TIME OF ISSUE:
IL-0985 (01-03) * 14-E-0001 (01-91) * 14-E-0097 (07-99) 14-E-0114 (04-97)
14-E-1106 (09-2009) * 14-L-0052 (09-2009) * 14-P-LEO (02-98),.00-' 14-E-1092 { 4-20 ) * 14-
E-1093 (11-2007) * 14-E-1100 (01-2009) * 14-L-0049 (01-2009) * /404 , u
Cc i;l`r!_ NED A r, U Ica, NY' }j'
Crn St W. V/? e k s
T vE C -LA.RA ION AND THE": C.OVERr`LteE Fi RM,(S) AMID ENDORSEMENTS, iF AI\'Y, ISSUE=D''O FORIIII A
PART i FIEI- EOF, C011APLETE T-IE ABOVE NUMBERED POLICY.
14-D-' EO Frt. SEE .—?VER FOR !'Mir R- ^, T CLAitI -u
E COVERAGE NOTiCE Page 1 of 2
UNIBILL 1s:t 753 L1 PREMIUM., AMOUNT TO 5E ��c:FL=_CTED ON NEXT BILLET=tG NOTICE