HomeMy WebLinkAbout~Master - Contract for administrative and claims processing services for Flexible Spending Account Program RESOLUTION NO. 13-527
RESOLUTION APPROVING CONTRACT FOR ADMINISTRATIVE AND CLAIMS
PROCESSING SERVICES FOR FLEXIBLE SPENDING ACCOUNT PROGRAM
FOR THE CITY OF AMES,IOWA
WHEREAS, Flexible Spending Accounts (FSAs), as provided to benefit-eligible City of
Ames employees, allows employees to set aside a portion of their earnings to pay for qualified
expenses such as health insurance premiums as well as medical and dependent care expenses; and,
WHEREAS, money deducted from an employee's pay into a Flexible Spending Account is
not subject to payroll taxes, resulting in substantial payroll tax savings; and,
WHEREAS,over the past several years,Wellmark Blue Cross Blue Shield has administered
the City's FSA program, and it has provided good customer service and flexible reimbursement
options, including automatic reimbursement of health and pharmacy claims processed through
Wellmark and direct deposit of reimbursement when elected; and,
WHEREAS,effective January 1,2014,Wellmark will charge $4.80 per contract per month
in claims processing fees and $400 in annual administration fees for this service; and,
WHEREAS, the charge per contract per month is an increase of 4.5% from 2013, and the
administration fee has no increase from 2013.
NOW, THEREFORE,BE IT RESOLVED,by the City Council of the City of Ames, Iowa,
that renewal documents with Wellmark Blue Cross Blue Shield for administrative and claims
processing services for the Flexible Spending Account Program are hereby approved.
ADOPTED THIS 26th day of November, 2013.
—L
� A.
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Davis
Seconded by: Wacha
Voting aye: Davis, Goodman, Orazem, Szopinski, Wacha
Voting nay: None Absent: Larson
Resolution declared adopted and signed by the Mayor this 26t' day of November, 2013.