HomeMy WebLinkAbout~Master - Agreement for Flexible Benefits Administration RESOLUTION NO. 14-599
RESOLUTION APPROVING FLEXIBLE BENEFITS ADMINISTRATION
AGREEMENT WITH WELLMARK BLUE CROSS BLUE SHIELD
FOR THE CITY OF AMES,IOWA
WHEREAS, a Flexible Spending Account, as provided to benefit-eligible City of Ames
employees, allows an employee to set aside a portion of his or her earnings to pay for qualified
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 payroll tax savings for the employee; and,
WHEREAS, over the past several years, Wellmark Blue Cross Blue Shield has been the
City's provider for the flexible reimbursement options,including automatic reimbursement of health
and pharmacy claims and direct deposit of reimbursement when elected; and,
WHEREAS, effective January 1, 2015,Wellmark will charge $5.00 per employee contract
per month in claims processing fees and $400 in annual administration fees to the City; and,
WHEREAS,the charge per employee contract per month is an increase of 4.2%(from$4.80
to $5.00)from calendar year 2014, and the administration fee will remain at the same rate as 2014;
and,
WHEREAS, the amount budgeted for administrative fees, and per employee contract per
month is $76,988 for calendar year 2015.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that renewal of the agreement with Wellmark Blue Cross Blue Shield for administrative and claims
processing services for the City's Flexible Spending Account benefit effective January 1, 2015, is
hereby approved.
ADOPTED THIS 25`h day of November, 2014.
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Nelson
Seconded by: Goodman
Voting aye: Betcher, Corrieri, Gartin, Goodman,Nelson, Orazem
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 25th day of November, 2014.