HomeMy WebLinkAboutItem 08 - Health PlanMEMO TO:
FROM:
MEETING DATE:
SUBJECT:
RECOMMENDATION:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
BRUNO RUMBELOW, CITY MANAGER
AUGUST 5, 2014
APPROVAL TO RENEW HEALTH PLAN BROKERAGE
SERVICE AGREEMENT
City Council to consider approval to renew an annual contract for Brokerage Services
with McGriff Seibels & Williams, Inc. for the City's Self -Funded Medical Program, Stop
Loss, and Pharmacy Benefit Manager.
FUNDING SOURCE:
Funds are available in account 100-44540-109-1 (Professional Services) in the
estimated amount of $60,000.
BACKGROUND:
The purpose of this contract is to establish annual pricing for Brokerage Services for the
City's Self -Funded Medical Program, Stop Loss, and Pharmacy Benefit Manager.
McGriff Seibels & Williams, Inc. has agreed to renew the contract with a $5,000 annual
decrease. McGriff Seibels & Williams, Inc. has provided these services to the City in the
past with successful results.
Staff recommends approval.
July 30, 2014 (4:01 PM)
McGRIFF SEIBELS & WILLUMS. INC.
5080 Spectrum Drive, Suite 900E, Addison, Texas 75001 (469) 232-2100 Fax (469) 232-2101
Brokerage Service Agreement
THIS BROKERAGE SERVICE AGREEMENT (this "Agreement") is between
MCGRIFF, SEIBELS & WILLIAMS ("MSW") and City of Grapevine (the "Client").
The Client and MSW agree as follows:
1. MSW will solicit, negotiate and service insurance policies for the Client for the
coverages described on Exhibit A hereto (Insurance Placement) and provide the
employee benefit management services described on Exhibit B hereto
(Employee Benefit Management Services).
2. The Client will provide MSW with all information necessary to enable MSW to
provide Insurance Placement and Employee Benefit Management Services.
3. Remuneration:
A. The Client will pay MSW a fee in the amount of $60,000 (the "Fee") for
Insurance Placement and Employee Benefit Management Services.
B. The Fee will be payable upon receipt of an annual invoice by the Client.
C. If MSW receives commission from one or more insurance companies and/or
intermediaries for the placement of insurance policies for the coverages
described on Exhibit A (a "Commission"), the Fee will be reduced by the
amount of such Commission. Final adjustments to the Fee amount will be
made by MSW after the determination and receipt by MSW of all
Commissions, net of any adjustments pursuant to any audit, endorsement,
accounting reconciliation or other applicable business process.
D. The Client acknowledges that:
i. receipt of such Commission constitutes remuneration of MSW for
placement of the applicable insurance policies;
ii. the remaining Fee does not include remuneration of MSW for
placement of the insurance policies for which MSW receives
Commission; and
iii. the remaining Fee is separate from and in addition to any such
Commission.
E. With respect to Insurance Placements and/or Employee Benefit
Management Services undertaken on behalf of the Client that are not
contemplated by this Agreement, MSW may be compensated pursuant to a
separate Broker Service Agreement or by the insurance companies and/or
intermediaries utilized in such Insurance Placements. MSW will make
information regarding such Agreements and compensation available to the
Client upon request.
4. With respect to any insurance placement or employee benefit management
services for which MSW's compensation is fee-based in whole or part, MSW will
not execute or accept any monetary compensation pursuant to any (1) market
service agreement, (2) placement service agreement, or (3) agreement
providing for any bonus, override or contingency that would be received from
any type of intermediary or insurance company. Further, MSW will instruct all
insurance companies to exclude insurance policies from any contingency
agreements, bonuses and overrides if MSW receives a fee for placement of
such policies. This does not preclude MSW from accepting non -monetary
awards, including trips and other prizes, which MSW believes are important for
professional and business development.
5. MSW reserves the right to engage business partners and service providers
owned by, or under the control of, MSW or BB&T Corporation in connection with
the execution of Brokerage Services Agreements. Use of these business
partners and service providers including but not limited to CRC Insurance
Services, Inc.; American Coastal Insurance Company; AmRisc, LP; Prime Rate
Premium Finance Corporation or affiliates; or BB&T Assurance Company, Ltd.,
could result in the accrual of additional income to BB&T Corporation.
6. This Agreement and the respective rights and obligations of the parties hereto
shall be construed in accordance with and governed by the laws of the state of
Texas.
7. This Agreement commences on 8/1/2014 and ends on 7/31/2015, unless
terminated prior to that date by either party hereto on 30 days' notice to the
other party.
IN WITNESS WHEREOF, the Client and MSW have executed this Agreement.
MSW
By:
Name: Johnny Fontenot
Client
in
Name: Bruno Rumbelow
Title: Executive Vice President Title: City Manager
EXHIBIT A
The Client has requested Insurance Placement for the following lines of coverage.
Self Funded Medical Program
Stop Loss
Pharmacy Benefit Manager
MSW will negotiate the pricing and terms of the coverage's with selected insurance companies
and/or intermediaries. At the end of the marketing process and upon the Client's request,
MSW will provide the Client with a report summarizing the results of such negotiations.
In connection with the coverage's listed above, MSW will provide the following services during
the term of this Agreement:
a. Confirmation of evidence of insurance (binders, cover notes) or the status of a
placement will be provided and delivered to Client prior to the renewal date;
b. Arrangement of periodic meetings with Client at mutually agreed upon times to
discuss pertinent topics;
c. Timely issuance of certificates of insurance.
d. Provision of claim status reports upon reasonable request;
e. Provision of loss runs upon reasonable request; and
f. Check insurance policies for accuracy.
I`*A, Ir:3�i �
MSW will provide the following Employee Benefit Management Services for the Client:
1) Orchestration of medical plan design
2) Pro forma forecast for annual budgeting process
3) Regular program review bi-monthly meetings
4) Management and oversight of third party administrator
5) PPO Network and Employee Assistance Plan
6) Disbursements management for the Self -Funded Group Medical
7) Reinsurance negotiation to include prior year retrieval from reinsurance
8) Review of all service provider contracts
9) RFP preparation and evaluation