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Home My WebLink AboutAgreement - Insurance Consulting for Employee Benefits - Gibson1316 COUNTY -CITY BUILDING CYt j PHONE 574/ 235-9251 227 W. JEFFERSON BOULEVARD �� FAX 574/ 235-9171 SOT ITH BEND_ 1NDIANA 46601-1 R30 CITY OF • BEND PETE BUTTIGIEG, MAY I BOARDPUBLIC December 10, 2019 Mr. Miguel Salazar Gibson 202 S. Michigan St., Suite 1400 South Bend, In 46601 RE: Insurance Consulting Agreement Dear Mr. Salazar: The Board of Public Works, at its meeting held on December 10, 2019, approved the above referenced the two (2) year agreement for consulting for employee benefits in the amount of $92,676/year. Enclosed please find the original of the agreement for your signature. Please sign and return the original agreement to our office and retain a copy for your records. If you have any further questions regarding this matter, please call this office at (574) 235- 9251. Sincerely, Linda M. Martin, Clerk Enclosure GARY A. GILOT GENEVIEVE E. MILLER ELIZABETH A. MARADIK LAURA L. O'SULLIVAN THERESE J. DORAU III ij� q 111111111111� I A AM ml, Presented by: Gibson Miguel Salazar Consultant INSURANCE CONSULTING AGREEMENT THIS AGREEMENT is made as of January 1, 2020, by and between Gibson ("Consultant") and City of South Bend ("Client"). APPOINTMENT Client hereby engages Consultant to provide advisory and brokerage services to Client for the purposes of assistance in the procurement and placement of Client's Employee Benefits insurance needs with appropriate insurers, and/or other services as outlined in the attached Exhibit B. TERM OF AGREEMENT This Agreement shall have a term of twenty-four (24) months starting as of the date first written above. Client or Consultant may terminate this Agreement at its sole discretion, with or without cause, by sending a written notice of termination to the other party. Such notice shall specify the termination date, which shall be no sooner than sixty (60) days in advance of such termination. 3. STATUTORY COMPLIANCE Consultant shall comply with all applicable insurance laws, including but not limited to Indiana Code § 27- 1-15.6. 4. CONSULTANT'S DUTIES Consultant shall serve with objectivity and complete loyalty solely in the insurance interests of Client; however, all decisions related to Client's business shall be made by Client in its sole and absolute discretion, for which Client hereby assumes the sole responsibility. Consultant shall receive and have access to information that is considered proprietary and confidential to Client. Both during and after the term of this Agreement, Consultant agrees to preserve and protect reasonably the confidential nature of this information. CONSULTANT'S COMPENSATION AND SCOPE OF WORK For all services rendered by the Consultant under this Agreement, Client shall pay the Consultant the fees identified on Exhibit "A" attached hereto and made a part hereof. The Scope of Work is identified in Exhibit "B". IN WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto as of the date first written above. , "Client" Board of Iltd6 : ,*, "Consultant" LC Printed:,w Title: Attachments: Exhibit A — Proposed Fees Exhibit B — Scope of Work M Printed: Miguel Salazar Title:..Consultant Exhibit A GIBSON — PROPOSED FEES Gibson's fee is derived from our standard fee structure for our clients. Gibson firmly believes in complete transparency regarding any compensation earned through our relationship with City of South Bend and will promptly disclose all information concerning our fees or any commissions both proactively and immediately upon request. Twenty -Four (24) Month Agreement: 1. Beginning January 1, 2020, an annual fee of $92,676.00 applies. Fee is to be paid monthly in amount of $7,723.00. 2. Gibson receives no commission on medical, dental or vision insurance. Gibson may receive commission from the long term disability carrier, life insurance carrier, voluntary life insurance carrier, or carriers for other voluntary products assigned to Gibson. Gibson may also receive compensation through incentive arrangements with insurance companies with which we place business. Eligibility for and the amount of contingent compensation is based on pre -established thresholds that may consider the agency's overall profitability, persistency, retention, growth and other factors. Should Gibson earn contingent compensation from a carrier, the carrier may issue a direct statement to each insured which indicates the estimated impact that any particular policy had on these payments. Contingent commissions vary, but amount to approximately 1% of all premiums written through Gibson. Exhibit B DUTIES TO BE PERFORMED BY CONSULTANT Actuarial Services ➢ Certified actuarial services for renewal projection, budget projection, program cost analysis, COBRA rates, as well as financial monitoring and plan benchmarking ➢ Mid -year renewal projection ➢ IBNR (incurred but not reported) ➢ Stop -loss analysis ➢ Plan design analysis ➢ Alternative funding strategy: carve -out analysis, captive strategy ➢ Renewal evaluation ➢ ACA impact analysis Claims & Financial Monitoring ➢ Monthly dashboard summaries of plan performance (customized) ➢ Quarterly claims analysis/review meeting ➢ Ad hoc inquiries & analysis ➢ In-house mid -year renewal projection ➢ In-house plan design analysis ➢ In-house ACA analysis ➢ HR team support ➢ Elevated claims & billing issue resolution ➢ Carrier/vendor liaison Health Risk Management Consulting ➢ Wellbeing program evaluation, design, ongoing support ➢ Assist in the development of future wellness programs and strategies ➢ Provide ongoing support and guidance related to Client's near -site employee health clinic ➢ Employee surveys support ➢ Monthly communication support ➢ Compliance & strategic oversight ➢ Value -based purchasing strategies: tiered networks, Rx plan analysis ➢ Springbuk/health analytics platform: benchmarking, claims data mining, drill -down analysis, predictive analytics, gaps -in -care, risk stratification Benefits Consulting ➢ Create and deploy comprehensive RFP to the marketplace, and conduct market review for all benefits, as needed. ➢ Provide information on latest trends and benchmarking data in employee benefit programs; including health, dental, life, disability, and other ancillary coverages ➢ Multi -year / long-term strategic planning ➢ RFP preparation & coordination ➢ Carrier/vendor analysis & negotiation of rates, guarantees, and other services ➢ Regular evaluation of: plan design, funding platform, plan/claims administrators, provider networks, and contribution strategy ➢ Cost -containment programs review ➢ Consumerism strategies ➢ Localized benchmarking ➢ 150 day pre -renewal meeting ➢ Prepare Executive Summary of results and recommendation when requested, and meet with the City Council, bargaining units or others to presenddiscuss the current state of the program as requested by Client Open Enrollment ➢ Collaborate with HR on open enrollment strategy ➢ Work with technology vendors (as needed) for updating all benefit lines ➢ Develop/coordinate open enrollment employee communications and meetings with employees ➢ Assist with coordination of vendors/carriers for annual employee benefits fair ➢ Provide HR staff support as needed for all open enrollment -related activities HR & Compliance Support ➢ Facilitate and provide oversight for administrative training with HR staff and carriers/vendors ➢ HR Q&A and ongoing support for elevated administrative and claim issues ➢ HR360 (online HR library resource) access ➢ Compliance Dashboard ➢ Electronic newsletters ➢ Webinars & seminars ➢ In-house & retained legal counsel ➢ 5500 preparation (signature -ready), if needed ➢ Wrap plan document ➢ ACA filing/ongoing administration ➢ ACA compliance strategy and guidance ➢ HR audit Support ➢ COBRA administration support BOARD OF PUBLIC WORKS AGENDA ITEM REVIEW REQUEST FORM Date 12/2/2019 Name Daniel Parker Department Admin & Finance ..M.... BPW Date 12/10/2019 Phone Extension 9822 ^� ...... Required Prior to Submittal to Board ta m BPW Attorney Attorney Name Clara Daniels Dept. Attorney Z Attorney Name Elliot Anderson Purchasing Z Michael Schmidt Check the App arititd Item l'y c za Professional Services Agreement F. Contract [] Open Market Contract [] Amendment/Addendum Bid Opening E] Bid Award Quote Opening ❑] Quote Award Proposal Opening ❑ C/O & PCA No. Chg. Order, No. ❑ Traffic Control Other: ired Information fin- All Submissions �.� Proposal Special Purchase, QPA ❑ Req. to Advertise ❑ Title Sheet Reject Bids/Quotes j PCA El Resolution Ease./Encroach Company or Vendor Name Gibson Insurance Agency _. _......._. New Vendor YesE] If Yes, Approved by Purchasing ® No MBE/WBE Contractor WBE Completed E-Verify Form Attached ❑ Nos Project Name Project Number Funding elf Fw unded Em to ee Benefits Fund 4711) Account No.Source �. P �� ..._.� .� _.._.�.....� ._.. A,_ 11-0401-671.31-06 Amount �. .�...ww _.... .....� ... _... $ 2,676 annually Terms of Contract 2�ear_contract ......... _.._ ........ Purpose/Description Consultin for em to ee benefits — lan design, analysis claims monitorin . com 1iann �, 111 s�i rr°l, etc For "i°�a��ge Orders Only Amount of ❑ Increase _.$ ...�...._�... _ �. ❑ Decrease ($ ) Previous Amount Current Percent of Change: New Amount Total Percent of Change: Time Extension Amount: New Completion Date: E19 Increase % Decrease ( % Increase % Decrease ( %