HomeMy WebLinkAbout2022-117AAMENDMENT TO ADMINISTRATIVE SERVICES AGREEMENT
THIS AMENDMENT, entered into on jjkA G 7 , 2022 is by and between
Blue Cross and Blue Shield of Florida, Inc. d/b/a Florida Blue (hereinafter called "Florida
Blue") and Indian River County Board of County Commissioners (hereinafter called the
"Employer"). In consideration of the mutual and reciprocal promises herein contained, the
Administrative Services Agreement between Florida Blue and the Employer (hereinafter
"Agreement") effective October 1, 1996 is amended as follows:
Section I, subsection 1.1, is hereby amended to extend the term of the Agreement
until September 30, 2026 unless the Agreement is terminated earlier in accordance
with the terms of the Agreement.
2. Exhibit B to the Agreement is hereby amended, effective October 1, 2022. The
revised Exhibit B is attached to this Amendment and replaces the Exhibit B
previously attached to the Agreement.
3. Except as otherwise specifically noted in this Amendment, all other terms and
conditions of the Agreement shall remain unchanged and in full force and effect.
IN WITNESS WHEREOF, this Amendment has been executed by the duly
authorized representatives of the parties.
BLUE CROSS AND BLUE SHIELD INDIAN RIVER COUNTY BOARD
OF FLORIDA, INC. D/B/A FLORIDA COUNTY COMMISSIONERS
BLUE r f•c°
By: Y o�.i B .
Title: _yp,, Sales Title:
Date: Au ust 1 2022
Date: August 1, 2022
APPROVEDO F� `r'"'1
AND LKI
BY
WILLIAM K. DEBRAAL
DEPUTY COUNTY ATTORNEY
Attest Jeffrey It Smith, Clerk of
Circuit Cowt and ConVWlet
Dgx*Clo*
EXHIBIT "B"
to the
ADMINISTRATIVE SERVICES AGREEMENT
between
BLUE CROSS AND BLUE SHIELD OF FLORIDA INC. D/B/A FLORIDA BLUE
and
INDIAN RIVER COUNTY BOARD OF COUNTY COMMISSIONERS
FINANCIAL ARRANGEMENTS
Banking Arrangement
Effective Date
The effective date of this Exhibit is October 1, 2022
II. Monthly Payments.
A. Each month, Florida Blue will notify Employer of the amount due to satisfy
the previous month's paid claims liability. Florida Blue also will provide
Employer with a detailed printout of the previous month's claims payments.
Employer agrees to pay the full amount of the bill within ten (10) days of the
written notification. If the payment is not received by Florida Blue by the
payment due date, the payment will be considered past due and subject to
a late payment charge, as set forth below. Additionally, Florida Blue will
immediately suspend claims until payment is received by Florida Blue.
B. Employer agrees to pay to Florida Blue, each month during and after the
term of this Agreement, an administrative fee, as set forth below. Employer
agrees to pay to Florida Blue, each month, the administrative fee within ten
(10) days of the written notification of the amount due. If payment is not
received by Florida Blue by the due date, the payment will be considered
past due and subject to a late payment charge, as set forth below.
Additionally, Florida Blue will immediately suspend claims until payment is
received by Florida Blue.
III. Funding Information
A. Method of Funding Transfer: ACH
IV. Administrative Fees:
A. Administrative fees during the term of the Agreement:
$49.55 per enrolled employee per month from October 1, 2022
through September 30, 2023.
-1-
$49.55 per enrolled employee per month from October 1, 2023
through September 30, 2024.
$51.04 per enrolled employee per month from October 1, 2024
through September 30, 2026.
B. Florida Blue will pay Employer a $75,000 wellness contribution upon the
Board's approval of renewing this Agreement, and $50,000 per year, each
year for four years upon renewing this Agreement for any wellness related
initiatives or activities.
C. Administrative fees after the termination of the Agreement: 15% of claims
paid.
D. Access fees of up to 2.11% (2022) of Network Savings for PPO provider
claims and 3.79% of Network savings for Traditional provider claims may
be assessed for claims incurred in states under the BlueCard program as
explained in more detail under the Section InterPlan Arrangements. This
access fee will not exceed two thousand dollars ($2,000) for any one claim
and will not apply in Florida, South Carolina or in Consortium Plan Service
Areas which is the geographic area where enrolled members reside as long
as enrollment continues to be equal to or greater than one thousand
(1,000) contracts. On the first anniversary date after enrollment falls
below one thousand (1,000) contracts, access fees will apply in those
Consortium Plan service areas where enrolled members reside and
Consortium fees were not previously established. Access fees will also
apply in Consortium Plan service areas where no enrolled members reside.
A determination of the Consortium Plan service areas that will not apply
access fees for services rendered to members will be made on the basis of
enrollment on each subsequent anniversary of this Agreement's effective
date. Access fees will be applied on the basis of where the service was
incurred, and not where the member resides.
Network Savings is defined as the total of the amounts computed by
subtracting each "allowed amount" for a particular service under the terms
of a participating provider's written agreement from each "billed amount" for
such service. In no event shall the term "Network Savings" include
duplicate charges or billed amounts for services or supplies not covered
under the Employer's Plan. The term "allowed amount" means the amount
received as payment in full by a participating provider, under that provider's
written agreement, from both Florida Blue and covered individuals under
Employer's Plan for claims submitted to, and paid by Florida Blue for a
particular covered service, and the term "billed amount' means the amount
which would be received by such provider for the same covered service
-2-
utilizing that provider's charges. The Allowed Amount for Emergency
Services provided by Non -Participating or Non -Contracting Providers will
pay in accordance with the definition of Maximum Payment in the Plan of
Benefits.
V. Late Payment Penalty
A. A daily charge of .00038 times the amount of overdue administrative fees.
VI. Expected Enrollment
A. The administrative fees and reserve requirement referenced above are based
on an expected enrollment of: 1,650.
B. If the actual enrollment is materially different from this expected enrollment,
Florida Blue reserves the right to adjust the administrative fees and the reserve
requirement as set forth in the Agreement.
-3-