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Agenda 12/13/2011 Item #16E 612/13/2011 Item 16.E.6. EXECUTIVE SUMMARY Recommendation to approve and authorize the Chairman to execute Amendment #3 to Collier County's contract with Meritain, Inc. for Group Health Third Party Administration Run -out Services in the estimated amount of $88,425. OBJECTIVE: To provide group health claims administration run -out services for the Collier County Group Health Plan through the amendment of the contract with Meritain, Inc. effective January 1, 2012. CONSIDERATIONS: The Board of Commissioners through the Risk Management Department offers a comprehensive group insurance program to its employees and their eligible dependents. The program includes a partially self - funded group health insurance plan also known as the "Plan ". In order to properly manage the Plan, the County employs the services of a professional third party claims administration company to adjudicate claims. Since 2000, the County has utilized Meritain, Inc., formerly known as CBSA, for these services. The existing agreement will expire on December 31, 2011. On July 26, 2011 the Board approved an agreement with Allegiance, Inc. to replace Meritain, Inc. effective January 1, 2012. Allegiance will begin adjudicating claims with service dates of January 1, 2012 and after. However, there will be claims with service dates prior to December 31, 2011 that will be presented for payment after January 1, 2012. These claims are referred to as "run -out claims ". The Plan permits claims to be presented for a period of up to twelve months after the service date. For example, a claim with a service date of January 1, 2011 is eligible for review if received before the close of business on December 31, 2011. Therefore, it is important that the run -out contract contain a twelve month term to assure that all eligible claims are properly managed. Typically, run -out claims are managed by the claims administrator in place on the date of service, in this case Meritain. It is uncommon for the new claims administrator to assume the servicing of these claims because of the logistical and data processing issues related to their submission. It is also typical for the cost of these run -out services to be equal to three months of claims administration fees. The current agreement with Meritain contains a run -out provision, however, staff is recommending that the agreement be amended to better define the run -out term, cost and services provided. The original agreement was for three years with the option to renew for two years. The run -out provision in the original agreement could be interpreted to apply only to a termination of services at the end of the original three year term. However, the agreement was extended beyond the initial three year term and thus; it is recommended that the provision be clarified. Staff has prepared an amendment to the Meritain agreement to reflect that claims run -out services will be for a period of twelve months with a commencement date of January 1, 2012 to assure that claims are properly administered. Meritain has agreed to the terms of the amendment and will execute the amendment prior to Collier County executing this amendment. FISCAL IMPACT: The amendment states that Meritain will be paid a monthly fee of $15.00 per employee per month based upon an agreed employee count of 1,965 employees for a period of three months commencing on January 1, 2012. The monthly payment of $29,475 shall be due on the first day of the month with the first payment due on January 1, 2012 and the final payment due Packet Page -3086- 12/13/2011 Item 16.E.6. on March 1, 2012. Total fees are estimated to be $88,425. Services shall commence on January 1, 2012 and terminate on December 31, 2012. Funds are budgeted within Fund 517, Group Health and Life for this purpose. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this item. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney's Office, requires majority vote, and is legally sufficient for Board action. — CMG RECOMMENDATION: That the Board approves and authorizes the Chairman to execute Amendment #3 to Collier County's contract with Meritain, Inc. for Group Health Third Party Administration Services. PREPARED BY: Jeff Walker, CPCU, ARM, Director, Risk Management Packet Page -3087- 12/13/2011 Item 16.E.6. COLLIER COUNTY Board of County Commissioners Item Number: 16.E.6. Item Summary: Recommendation to approve and authorize the Chairman to execute Amendment #3 to Collier County's contract with Meritain, Inc. for Group Health Third Party Administration Run -out Services in the estimated amount of $88,425. Meeting Date: 11/8/2011 Prepared By Name: WalkerJeff Title: Director - Risk Management,Risk Management 10/21/2011 9:13:50 AM Submitted by Title: Director - Risk Management,Risk Management Name: WalkerJeff 10/21/2011 9:13:52 AM Approved By Name: SmithKristen Title: Administrative Secretary,Risk Management Date: 10/21/2011 9:57:06 AM Name: WoodLyn Title: Contracts Specialist,Purchasing & General Services Date: 10/24/2011 12:48:30 PM Name: CarnellSteve Title: Director - Purchasing /General Services,Purchasing Date: 10/27/2011 2:21:09 PM Name: GreeneColleen Title: Assistant County Attorney,County Attorney Date: 10/27/2011 3:14:30 PM Packet Page -3088- 12/13/2011 Item 16.E.6. Name: PriceLen Title: Administrator - Administrative Services, Date: 10/27/2011 5:39:57 PM Name: GreenwaldRandy Title: Management/Budget Analyst,Office of Management & B Date: 10/28/2011 11:56:33 AM Name: KlatzkowJeff Title: County Attorney, Date: 10/28/2011 1:50:20 PM Name: FinnEd Date: 10/31/20113:16:04 PM Name: IsacksonMark Title: Director -Corp Financial and Mgmt Svs,CMO Date: 11/1/2011 8:55:34 AM Packet Page -3089- 12/13/2011 Item 16.E.6. DATE RECEIVED OCT 10 2006 RISK MANAGEMENT COLLIER COUNTY GOVERNMENT Administrative Services Division Purchasing Building Contract Administration 3301 E. Tamiami Trail Purchasing Department Naples, Florida 34112 Telephone: 239.774.8990 Monday, October 9, 2006 FAX: 239.530.6587 LindaBest@colliergov.net Ms. Corrina Jacobson Client Services Manager Corporate Benefit Services of America, Inc. 400 Highway 169 South, Suite 800 Minneapolis, MN 55426 -1141 RE: Contract No. 06 -3983, "Third Party Administrator for Group Insurance Benefits" Dear Corrina: Enclosed is a fully executed copy of the above referenced agreement for your records. Upon receipt of the requested information for the name change, I will complete that process as well ... the below information is identical to that I emailed to you on August 23, 2006: Name Change or Reassignment of a Contract: Vendor Name Change: When a vendor changes its name or when a vendor is merged with another company, the change happens automatically. The project manager communicates this change to the contract specialist who will request the following from the firm, in writing: 1. Request documentation from the appropriate Secretary of State showing the name change or merger and its effective date. 2. A cover letter from the vendor, which will advise of the name change or vendor merger 3. Once the information has been provided by the firm, copies of the documentation are to be distributed to the Finance Division (Contracts Department), the project manager, the Minutes and Records Department and the Purchasing Department. Reassignment of a Contract: In instances in which a corporate reorganization or sale of assets (other than stock) occurs and the contracting party notifies the County of this event, consent to the assignment of the contract must take place. The issuance of payment or to give new orders in the new name cannot take place until it is determined whether Collier County will consent to the assignment, and what the conditions of the consent will be. All new assignments must be approved by the Board. I . A copy of the assignment document. 2. Where applicable, the name of the business entity that will employ the staff performing the work. 3. The location of the financial and tangible assets that were owned by the vendor that the original contract was with, and/or the assignee has equivalent assets. Packet Page -3090- 12/13/2011 Item 16.E.6. Page 2 Monday, October 09, 2006 4. If available, insurance policies that meet the requirement of the contract. In the case of a construction contract, evidence that the bonding company(ies) that have issued payment and performance bonds are willing to consent to the assignment d. Insurance and Bonding: If the decision is made to consent to the assignment, a new certificate of insurance is required. If the contract required a payment and/or performance bond, the bonding company must also provide acknowledgement that the assignee has become Principal on the bonds or production of the replacement bonds in the name of the assignee. The certificate of insurance and bonds are to be sent to the Risk Management Department for review. Congratulations again on the award of this contract; if there are any questions, please do not hesitate to contact me at 239.774.8990. 4 Reg , a jac Best Contract t Enclosures cc: Jeff WaEker, Risk Management Department Packet Page -3091- 12/13/2011 Item 16.E.6. DATE RECEIVED OCT 10 2006 AGREEMENT 06 -3983 RISK MANAGEMENT for Third Party Administrator for Group Insurance Benefits THIS AGREEMENT, made and entered into on this 26th day of September 2006, by and between Corporate Benefit Services of America, Inc. (CBSA), authorized to do business in the State of Florida, whose business address is 400 Highway 169 South, Suite 800, Minneapolis, MN 55426 -1141 hereinafter called the "Consultant" and Collier County, a political subdivision of the State of Florida, Collier County, Naples, hereinafter called the "County ": WITNESSETH: 1. COMMENCEMENT. This Agreement shall commence after receipt of the Notice to Proceed, in the form of a letter from the Contract Manager. The Contract shall be for a two (2) year period, commencing on January 1, 2007 and terminating on December 31, 2009. The County may, .at its discretion and with the consent of the Consultant, extend the Agreement under all of the terms and conditions contained in this Agreement for two (2) additional one (1) year periods. The County shall give the Consultant written notice of the County's intention to extend the Agreement term not less than ten (10) days prior to the end of the Agreement term then in effect. 2. STATEMENT OF WORK. The Consultant shall furnish Third Party Administration for Group Insurance Benefits in accordance with the terms and conditions of RFP #06 -3983 and the Consultant's proposal hereto attached and made an integral part of this agreement. 3. THE CONTRACT SUM. The County shall pay the Consultant for the performance of this Agreement in accordance with Exhibit A, Cost Proposal, hereto attached and made an integral part of this agreement. Payments shall be made to the Consultant not more frequently than once per month. Payment will be made upon receipt of a proper invoice and in compliance with Section 218.70 F.S. otherwise known as the "Florida Prompt Payment Act ". 4. NOTICES. All notices from the County to the Consultant shall be deemed duly served if mailed or faxed to the Consultant at the following Address: Packet Page -3092- 12/13/2011 Item 16.E.6. Corporate Benefit Services of America, Inc. 400 Highway 169 South, Suite 800 Minneapolis, MN 55426 -1141 Attn: R. E. Wolf, President and CEO FAX: 952.546.9468 All Notices from the Consultant to the County shall be deemed duly served if mailed or faxed to the County to: Collier County Government Center Purchasing Department - Purchasing Building 3301 Tamiami Trail, East Naples, Florida 34112 Attn: Steve Carnell FAX: 239.732 -0844 The Consultant and the County may change the above mailing address at any time upon giving the other party written notification. All notices under this Service Agreement must be in writing. 5. NO PARTNERSHIP. Nothing herein contained shall create or be construed as creating a partnership between the County and the Consultant or to constitute the Consultant as an agent of the County. 6. PERMITS: LICENSES: TAXES. In compliance with Section 218.80, F.S., all permits necessary for the prosecution of the Work shall be obtained by the Consultant. Payment for all such permits issued by the County shall be processed internally by the County. All non - County permits necessary for the prosecution of the Work shall be procured and paid for by the Consultant. The Consultant shall also be solely responsible for payment of any and all taxes levied on the Consultant. In addition, the Consultant shall comply with all rules, regulations and laws of Collier County, the State of Florida, or the U. S. Government now in force or hereafter adopted. The Consultant agrees to comply with all laws governing the responsibility of an employer with respect to persons employed by the Consultant. 7. NO IMPROPER USE. The Consultant will not use, nor suffer or permit any person to use in any manner whatsoever, county facilities for any improper, immoral or offensive purpose, or for any purpose in violation of any federal, state, county or municipal ordinance, rule, order or regulation, or of any governmental rule or regulation now in effect or hereafter enacted or adopted. In the event of such violation by the Consultant or if the County or its authorized representative shall deem any conduct on the part of the Consultant to be objectionable or improper, the County shall have the right to suspend the contract of the Consultant. Should the Consultant fail to correct any such violation, conduct, or practice to the satisfaction of the County within twenty -four (24) Packet Page -3093- 12/13/2011 Item 16.E.6. hours after receiving notice of such violation, conduct, or practice, such suspension to continue until the violation is cured. The Consultant further agrees not to commence operation during the suspension period until the violation has been corrected to the AN*, satisfaction of the County. 8. PROHIBITION OF GIFTS TO COUNTY EMPLOYEES. No organization or individual shall offer or give, either directly or indirectly, any favor, gift, loan, fee, service or other item of value to any County employee, as set forth in Chapter 112, Part III, Florida Statutes, Collier County Ethics Ordinance No. 2004 -05, and County Administrative Procedure 5311. Violation of this provision may result in one or more of the following consequences: a. Prohibition by the individual, firm, and /or any employee of the firm from contact with County staff for a specified period of time; b. Prohibition by the individual and /or firm from doing business with the County for a specified period of time, including but not limited to: submitting bids, RFP, and/or quotes; and, c. immediate termination of any contract held by the individual and /or firm for cause. 9. TERMINATION. Should the Consultant be found to have failed to perform his services in a manner satisfactory to the County as per this Agreement, the County may terminate said agreement immediately for cause; further the County may terminate this Agreement for convenience with a seven (7) day written notice. The County shall be sole judge of non - performance. 10. NO DISCRIMINATION. The Consultant agrees that there shall be no discrimination as to race, sex, color, creed or national origin. 11. INSURANCE. The Consultant shall provide insurance as follows: A. Commercial General Liability: Coverage shall have minimum limits of $1,000,000 Per Occurrence, Combined Single Limit for Bodily Injury Liability and Property Damage Liability. This shall include Premises and Operations; Independent Consultants; Products and Completed Operations and Contractual Liability. B. Business Auto Liability: Coverage shall have nuniunum limits of $1,000,000 Per Occurrence, Combined Single Limit for Bodily Injury Liability and Property Damage Liability. This shall include: Owned Vehicles, Hired and Non -Owned Vehicles and Employee Non - Ownership. C. Workers' Compensation: Insurance covering all employees meeting Statutory Limits in compliance with the applicable state and federal laws. D. Professional Liability Insurance: The Consultant shall maintain Insurance to insure it's legal liability for claims arising out of the performance of professional services under this Agreement. Coverage shall have minimum limits of $1,000,000 Per Occurrence. Packet Page -3094- 12/13/2011 Item 16.E.6. 5pecial Requirements: Collier County shall be listed as the Certificate Holder and included as an Additional Insured on the Comprehensive General Liability Policy. Current, valid insurance policies meeting the requirement herein identified shall be maintained by Consultant during the duration of this Agreement. Renewal certificates shall be sent to the County thirty (30) days prior to any expiration date. There shall be a thirty (30) day notification to the County in the event of cancellation or modification of any stipulated insurance coverage. Consultant shall insure that all subConsultants comply with the same insurance requirements that he is required to meet. The same Consultant shall provide County with certificates of insurance meeting the required insurance provisions. 12. INDEMNIFICATION. To the maximum extent permitted by Florida law, the Consultant or Consultant shall indemnify and hold harmless Collier County, its officers and employees from any and all liabilities, damages, losses and costs, including, but not limited to, reasonable attorneys' fees and paralegals' fees, to the extent caused by the negligence, recklessness, or intentionally wrongful conduct of Consultant or Consultant or anyone employed or utilized by the Consultant or Consultant in the performance of this Agreement. This indemnification obligation shall not be construed to negate, abridge or reduce any other rights or remedies which otherwise may be available to an indemnified party or person described in this paragraph. This section does not pertain to any incident arising from the sole negligence of Collier County. 13. CONTRACT ADMINISTRATION. This Agreement shall be administered on behalf of the County by the Risk Management Department. 14. CONFLICT OF INTEREST: Consultant represents that it presently has no interest and shall acquire no interest, either direct or indirect, which would conflict in any manner with the performance of services required hereunder. Consultant further represents that no persons having any such interest shall be employed to perform those services. 15. COMPONENT PARTS OF THIS CONTRACT. This Contract consists of the attached component parts, all of which are as fully a part of the contract as if herein set out verbatim: Exhibit A, Cost Proposal; Insurance Certificate; Consultant's Proposal; and RFP #06 -3983, "Third Party Administrator for Group Insurance Benefits. 16. SUBTECT TO APPROPRIATION. It is further understood and agreed by and between the parties herein that this agreement is subject to appropriation by the Board of County Commissioners. 17. VENUE. This agreement shall be construed in compliance with Florida Laws. Venue shall be in Collier County, Florida. Packet Page -3095- 12/13/2011 Item 16.E.6. IN WITNESS WHEREOF, the Consultant and the County, have each, respectively, by an authorized person or agent, hereunder set their hands and seals on the date and year first above written. Dwight E. Broe*c,'Clerk of Courts By; Dat6ji. (SEAL),.. /First Witness Type/ t witnessnzqne Sec nd Witness — Mickfue- onl bns Type /print witness name Approved as to form and legal sufficiency: r Colleen M. Green Assistant County Attorney BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA By: Frank Halas, Chairman Corporate Benefit Services of America, Inc. Jacob L Canova President, Chief Executive Officer Typed signature and title Packet Page -3096- 12/13/2011 Item 16.E.6. Exhibit A Cost Proposal Collier County Government Exhibit A, Cost Proposal from CBSA .� �� � 31 Y � r^''v .;:w «a tfi^4T.m'gd N/A Initial set-up fee (one time charge per employee) Annual reoccurring fee (express as a one N/A N/A time charge per employee) Medical administrative fee as a monthly $11.25 cost per employee Dental administrative fee as a monthly $1.50 cost er em to ee HIMOMMENNIMMME $40,000 for a 30 hour work week Annual fee for on -site customer service representative $54,000 for a 40 hour work week Additional fees for custom reports 150 per hour if programming required Fees for dedicated account service Included in medical fee Fees for toll free customer service line Included in medical fee Fees for interface with a custom direct Included in medical fee contracted provider network Fees for interface with Community Health Included in medical fee Partners Utilization review and case and disease management services Identify any additional components for which you assess a separate charge List any additional Item in left margin.) Programming for data feed from SAP $150 per hour system to CBSA, or for programming of any new or changed data feeds with other vendors. Data file transfer programming for SAP will be operational on or before 7anuary 1, 2007. SubLogation Services 25% of the total recovery Mailing of employee packets /ID $3.50 per packet cards to employees' homes for new employees, or during open enrollment Annual Flex Administrative Fees 750 annual fee A -1 Packet Page -3097- 12/13/2011 Item 16.E.6. • „ � t 6 f _ _. x F �# iYAS( 7"kf 4 tn'�A,iyM+k �� '«.�'S "d � � ��'�F.�,ko'. "�4�i1� {F . � -eke v."— 3[�S aw ._k �ie.� ..�` -5.f:_ w• ,� °r ��W.dS �.t � One time cost per employee to pay run out COBRA Administration CCG may also consider purchasing additional service related to COBRA, HIPAA, and spending account administration. Please use the following table to present your cost quotations for 2007, 2008, 2009 for the areas indicated: * *The onsite customer Advocate would be terminated on the date that CCG terminates the services of CBSA. There would not be an onsite customer Advocate during the run -out period. End of Schedule A Packet Page -3098- Additional Services COBRA Administration $1.05 $1.05 $1.05 HIPAA Administration .35 35 35 Medical Reimbursement Account Administration $3.50 per $3.50 per $3.50 per participating participating participating employee employee employee Dependent Care Reimbursement Account Included in price above Administration * *The onsite customer Advocate would be terminated on the date that CCG terminates the services of CBSA. There would not be an onsite customer Advocate during the run -out period. End of Schedule A Packet Page -3098- 12/13/2011 Item 16.E.6. PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION Aon Risk Services ,Inc. of Maryland ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE 500 East Pratt Street HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR Baltimore MD 21202 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. COMPANIES AFFORDING COVERAGE COMPANY Executive Risk Indemnity PHONE • (866) 283 -7124 FAX - (866) 430 -1035 A INSURED COMPANY Federal Insurance Company d Performax Holdings, Inc. B 1 South st L COMPANY 10th Floor 'fl Baltimore MD 21202 USA COMPANY THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO TYPE OF INSURANCE POLICYNUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS PROPERTY DAMAGE GARAGE LIABILITY ANY AUTO DATE (MM/DD/YY) DATE (MM/DD/YY) AUTO ONLY - EA ACCIDENT B GENERAL LIABILITY 35366812BAL 01/01/06 01/01/07 GENERAL AGGREGATE 52,000,000 0 Commercial Package PRODUCTS - COMP/OP AGG 52,000,000 AGGREGATE X COMMERCIAL GENERAL LIABILITY B WORKER'S COMPENSATION AND EMPLOYERS' LIABILITY THE PROPRIETOR INCL PARTNERS/EXECUTIVE OFFICERS ARE: EXCL 0771648211 workers Compensation 01/01/06 PERSONAL & ADV INJURY S1,000,000 CLAIMS MADE OCCUR 07 7X 0. EL DISEASE - POLICY LIMIT $500, C - OWNER'S & CONTRACTOR'S PROT X Fiduciary Liab 81604004 Fiduciary Liability 10/27/05 10/27/06 EACH OCCURRENCE S1,000,000 FIRE DAMAGE(Any one fire) 51,000,000 z u MED EXP (Any one person) S10,003 B AUTOMOBILE LIABILITY 0673518969 01/01/06 01/01/07 COMBINED SINGLE LIMIT $1,000,000 ANY AUTO Automobile Liability L" BODILY INJURY ALL OWNED AUTOS 01 C.) ( Per person) SCHEDULED AUTOS BODILY INJURY X HIRED AUTOS }( NON- OWNEDAUTOS (Per accident) DESCRIPTION OF OPERATIONSILOCATIONS /VEHICLES /SPECIAL ITEMS RE: Contract NO. 06 -3983 Collier County is added as an Additional Insured excluding workers Compensation and Employers' Liability as r required by written contract but limited to the operations of the Insured under said contract, and always subject SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE Collier county EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVORTO MAIL Attention: Purchasing Building 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, 3301 E. Tami ami Trail BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY Naples FL 34112 USA OF ANY KIND UPON THE COMPANY. ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE Packet Page -3099- PROPERTY DAMAGE GARAGE LIABILITY ANY AUTO AUTO ONLY - EA ACCIDENT OTHER THAN AUTO ONLY: EACH ACCIDENT AGGREGATE EXCESS LIABILITY UMBRELLA FORM OTHER THAN UMBRELLA FORM EACH OCCURRENCE AGGREGATE B WORKER'S COMPENSATION AND EMPLOYERS' LIABILITY THE PROPRIETOR INCL PARTNERS/EXECUTIVE OFFICERS ARE: EXCL 0771648211 workers Compensation 01/01/06 01/01/07 X I WC 0T TORY LIMITS LIMIT EL EACH ACCIDENT 0. EL DISEASE - POLICY LIMIT $500, EL DISEASE -EA EMPLOYEE $500, A X Fiduciary Liab 81604004 Fiduciary Liability 10/27/05 10/27/06 Fiduciary Liability $2,000, DESCRIPTION OF OPERATIONSILOCATIONS /VEHICLES /SPECIAL ITEMS RE: Contract NO. 06 -3983 Collier County is added as an Additional Insured excluding workers Compensation and Employers' Liability as r required by written contract but limited to the operations of the Insured under said contract, and always subject SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE Collier county EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVORTO MAIL Attention: Purchasing Building 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, 3301 E. Tami ami Trail BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY Naples FL 34112 USA OF ANY KIND UPON THE COMPANY. ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE Packet Page -3099- 12/13/2011 Item 16.E.6. Attachment to ACORD Certificate for Performax Holdings, inc. The terms, conditions and provisions noted below are hereby attached to the captioned certificate as additional description of the coverage afforded by the insurer(s). This attachment does not contain all terms, conditions, coverages or exclusions contained in the policy. INSURED Performax Holdings, Inc. 1 south st 10th Floor Baltimore MD 21202 USA ADDITIONAL POLICIES If a policy below does not include limit information, refer to the corresponding policy on the ACORD certificate form for policy limits. CO GTR TYPE OF INSURANCfi POLICY NUMBER POLICY DESCRIPTION POLICY EFFECTIVE DATE POLICY EXPIRATION DATE LI11tI'IS DESCRIPTION OF OPERATIONS ILOCATIONSIVEHICLESISPECIAL ITEMS to the policy terms, conditions and exclusions. Cancellation Provision shown herein is sub)'ect to shorter or longer time periods depending on the jurisdiction of, and reason for, the cancellation. Certificate No: 570019530597 Packet Page -3100- 12/13/2011 Item 16.E.6. ACORD,r DATE hSA�DD /YY) 09 1 06 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION PRODUCER Aon Risk services ,Inc. of Maryland ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE 500 East Pratt street HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR Baltimore MD 21202 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. COMPANIES AFFORDING COVERAGE COMPANY Federal Insurance Company u PHONE - (866) 283 -7124 FAX • (866) 430 -1035 A INSURED COMPANY d Performax Holdings, Inc. B 1 South st L 10th Floor COMPANY Baltimore MD 21202 USA C COMPANY D THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO LT TYPE OF INSURANCE POLTCY NUMBER POLLCY EtPECT[VE DATE (MM/DD/YY) POLICY EXPIRATION DATE (MM/DDA'Y) LIMITS oD A GENERAL LIABILITY 35366812BAL 01/01/06 01/01/07 GENERAL AGGREGATE 52,000,000 W X COMMERCIAL GENERAL LIABILITY Commercial Package M PRODUCTS - COMP /OPAGG 52,000,000 CLAIMS MADE OCCUR � C PERSONAL 8 ADV INJURY S1,000,000 OWNER'S 8 CONTRACTOR'S PROT r, EACH OCCURRENCE S1,000,005 FIRE DAMAGE(My one fire) $1,000,000 C MED EXP (Anyone person) S10,000 Z d A AUTOMOBILE LIABILITY 0673518969 01/01/06 01/01/07 COMBINED SINGLE LIMIT S1,000,000 ANY AUTO Automobile Liability BODILY INJURY ALL OWNED AUTOS U SCHEDULED AUTOS ( Per person) BODILY INJURY X HIRED AUTOS X NON- OWNEDAUTOS (Per accident) PROPERTY DAMAGE GARAGE LIABILITY AUTO ONLY - EA ACCIDENT ANYAUTO OTHER THAN AUTO ONLY: EACH ACCIDENT AGGREGATE EXCESS LIABILITY EACH OCCURRENCE AGGREGATE UMBRELLA FORM OTHER THAN UMBRELLA FORM A WORKERS COMPENSATION AND 077164$211 01/01/06 01/01/07 X WC STATU- 11TH. TORY LIMITS EL EACH ACCIDENT tto EMPLOYERS' LIABILI Y workers compensation THE PROPRIETOR/ INCL PARTNERS /EXECUTIVE HEXCL EL DISEASE- POUCYLIMIT EL DISEASE -EA EMPLOYEE OFFICERS ARE _ DESCRIPTION OF OPERATIONSILOCATIONS /VEHICLES/SPECIAL ITEMS RE: Contract No. 06 -3983 Collier county is added as an Additional insured excluding workers' compensation and Employers' Liability as required by written contract but limited to the operations of the Insured under said contract, and always subject SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE collier county EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVORTO MAIL Attention: Pu rchasi naY Building 3D DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, 3301 E. Tami ami Trai I Naples FL 34112 USA BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR UABIL17Y dL- OF ANY KIND UPON THE COMPANY. ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE , �,. 8p�,b,� yj,a —lid 21 Packet Page -3101- 12/13/2011 Item 16.E.6. Attachment to ACORD Certificate for Performax Holdings, Inc. The terms, conditions and provisions noted below are hereby attached to the captioned certificate as additional description of the coverage afforded by the insurer(s). This attachment does not contain all terms, conditions, coverages or exclusions contained in the policy. INSURED Performax Holdings, Inc. 1 south st 10th Floor Baltimore MD 21202 USA ADDITIONAL POLICIES If a policy below does not include limit information, refer to the corresponding policy on the ACORD certificate form for policy limits. CO CO TYPE OF INSURANCE POLICY NUMBER POLICY DESCRIPTION POLICY EFFECTIVE DATE POLICY EXPIRA71ON DATE uMITS DESCRIPTION OF OPERATIONS/LOCATIONSIVEHICLES /SPECIAL ITEMS to the policy terms, conditions and exclusions. cancellation Provision shown herein is sub]'ect to shorter or longer time periods depending on the jurisdiction of, and reason for, the cancellation. Certificate No: 570019316328 Packet Page -3102- 12/13/2011 Item 16.E.6. WalkerJeff From: Wiesing, Sue [sue.wiesing @willis.com] Sent: Tuesday, November 01, 2011 11:30 AM To: WalkerJeff Cc: Ley, Douglas; Buell, Stephen; Meredith, Mike; Frederick, Allison Subject: Meritain Run -Out Provisions for CCG Jeff: To follow -up on your email correspondence with our team and your conversation yesterday morning with Doug, we wanted to recap for you our summary of the process involved with obtaining a final run out agreement from Meritain. As you know, the agreement between CCG and Meritain was a three -year agreement that included run -out terms as part of the contract. These terms provided for 6 months of run out at a rate of $11.25 per employee. We believed that to be an exceptionally competitive proposal and in the best interest of CCG at that time. This preliminary agreement was extended for two additional one -year periods by an agreement created by the CCG Purchasing Department. Both CCG and Willis had no information that suggested this extention would modify the previously agreed upon run -out terms in the initial agreement. When Meritain was notified of the termination of the CCG agreement after the 2011 marketing process for the CCHCC employers, Willis requested confirmation of the run out terms as transition plans needed to be firmed up. We were initially advised that the run -out terms had not changed from the above. It was at this time, that Meritain indicated a new proposal and advised Willis that the extension negotiated by CCG did not include extending the run out provisions of the initial agreement. Willis continued to negotiate the run out provisions so that CCG could move forward with plans to transition away from Meritain and implement the new agreement with Allegiance. Final terms were to provide run out services for 12 months at a rate of $15 per employee payable for 3 months. This was a counter proposal to Meritain's suggested terms that were based on a lower admin fee for a longer time frame and based on an incorrect head count. Through negotiations, Willis was successful in having them modify this proposal. The final terms are competitive with the marketplace and were, in fact, better than some others provided during the recent marketing process. Since the only way to effectively refute Meritain's position would be to litigate, neither Willis nor the CCG felt that would be cost - effective nor timely to meet the needs to process member claims without significant impact to member service and cost. Going forward, we recommend that any future Agreements or extensions should be forwarded to the Risk Management Department and Willis for a "last look" after the Purchasing Department's final negotiations. This should help to minimize any oversight on industry- specific content and to confirm terms that have been agreed upon or presented during the marketing and selection process. Again, our team does feel that the final outcome in this process was favorable in terms of the final result, but we are disappointed in Meritain's business practices. Please let us know if you have any further questions or would like any additional information. Thank you, Sue Sue Wiesing Assistant Vice President, Account Executive Willis Group, 720 -5th Avenue South, Ste #203, Naples, FL 34102 Direct: 239 - 659 -4500 Ext. 5, sue.wiesin- ciRwillis.com www.willis.com Learn About What We Can Do for You ..... Packet Page -3103- 12/13/2011 Item 16.E.6. AMENDMENT TO AGREEMENT 06 -3983 FOR THIRD PARTY ADMINISTRATOR FOR GROUP INSURANCE BENEFITS This Amendment, effective December 13, 2011 ( "Effective Date "), amends Agreement 06 -3983 for Third Party Administrator Group Insurance Benefits ( "Agreement °), made and entered into on September 26, 2006, by and between Meritain Health, Inc. ("Consultant") and Collier County Board of Commissioners ("County"), as follows: 1. Termination. The parties hereby agree that the Agreement 06 -3983 will be extended for one (1) year, through December 31, 2012, for the sole purpose of Consultant providing Run -Out services as defined in this Amendment and in Consultant's Response to Request for Proposals No. 06 -3983. 2. Run -Out Period. Consultant agrees to process all medical claims incurred on or before December 31, 2011 and received by Consultant on or before December 31, 2012 ( "Run -Out Period "). 3. Run -Out Claims Administration Fees. Client shall engage Consultant's run -out claims processing services for the Run -out Period and Client agrees to pay Consultant fees as follows. County shall pay Consultant a monthly fee based upon an agreed employee count of 1,965 employees for a period of three months commencing on January 1, 2012. The monthly payment of $29,475 shall be due on the first day of the month with the first payment due on January 1, 2012 and the final payment due on March 1, 2012. In Witness Whereof, the parties have executed this Amendment on the dates set forth below. Meritain He I nc. Collier County Board of Commissioners By: By: Margie Mann, Regional President / Date: lved Coeevn as to form and legal sufficiency: Greene, Assistant County Attorney Name: Fred W. Coyle Title: Chairman Date: ATTEST: Dwight E. Brock, Clerk of Courts By: Dated: (SEAL) Packet Page -3104-