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BOCC Human Resources evaluated the two (2) finalists and obtained additional public sector references. Based on the evaluation of the committee; references, and pricing, Human Resources is recommending BenefitExpress be selected to provide benefit administration services for Indian River County's group medical plan and associated voluntary benefits. DEPENDENT VERIFICATION AUDIT: A key component of the benefit administration services will also be to conduct a comprehensive dependent verification audit to confirm that every dependent on the plan is eligible to remain on the plan and receive benefits. This audit will verify that only eligible dependents remain on the plan and will result in savings by removing ineligible dependents from receiving benefits. It is estimated that a 3%— 5% reduction in the 2,025 covered dependents will result from this audit (3% x 2,025 = 60). Assuming an estimated plan cost of $3,000 per dependent, this could translate into a substantial savings to the plan ($3,000 x 60 = $180,000). COST: The total proposed fees for a two year agreement, which includes one-time implementation costs and a first year dependent verification audit totaling $53,930, is $213,631. BenefitExpress has agreed to reduce the implementation fee by $3,995 (web enrollment implementation fee). The adjusted two year cost is projected at $209,636. The recurring fee of $79,850 equates to $4.10 per employee per month (PEPM) or $49.20 per year per benefit eligible member (active or retiree). BenefitExpress has agreed to a five (5) year term with no rate increase. FUNDING: Funding for the benefit administration system will be provided from the health insurance trust fund and will be included as a benefit administration fee. It is expected that savings resulting from the dependent verification audit and the recent pharmacy benefit transition to ExpressScripts will cover the initial implementation cost as well as the first and second year of services. Recurring costs will be budgeted with the other administrative service fees associated with the medical plan. Human Resources in conjunction with our benefit consultant will continue to review plan performance and identify potential cost savings to maintain a plan that is competitive, affordable, and sustainable. RECOMMENDATION: Staff respectfully requests the Board of County Commissioners approve the recommendation to select BenefitExpress to provide benefit administration services for the County's comprehensive employee benefit program effective May 1, 2018 to include a dependent verification audit, to authorize staff to enter into a five (5) year agreement, and to authorize the Board Chairman to sign the administrative service agreement after review and approval by the County Attorney. Attachments: Benefit Administration Scorecard Finalist Pricing BenefitExpress Dependent Verification Audit 162