Loading...
HomeMy WebLinkAbout13.C.1. Transfer Services from Healthy Contributions to Vanco for HMO Membership Reimbursements 13,e, CITY OF SHAKOPEE MEMORANDUM To: Mayor and City Council Mark McNeill, City Administrator From: Travis Karlen, Recreation Supervisor Gregg Voxland, Finance Director Meeting Date: October 17, 2009 Subject: Transfer Services from Healthy Contributions to Vanco for HMO Membership Reimbursements INTRODUCTION City Council is asked to approve a transfer of services from Healthy Contributions to Vanco through NICHA for HMO membership reimbursements at the Shakopee Community Center and authorize a separate account for automatic debiting for monthly fees. BACKGROUND AND DISCUSSION Since 2007 the Shakopee Community Center has participated in the healthcare reimbursement program for memberships through NIHCA (National Independent Health Club Association) and MNRPA (Minnesota Recreation and Parks Association). MNRPA administers the reimbursements of Medica Members while NIHCA and Healthy Contributions administered the Blue Cross Blue Shield, Definity Health, and UCare programs. In spring 2009 NICHA broke ties with Healthy Contributions and partnered with Vanco to continue administration of the HMO programs they are offering. At that time we already had the infrastructure set up with Healthy Contributions; staff felt it was in the best interest to stay with them through the duration of the year. We felt this was also a good option because they were willing to bill us for our club fees instead of deducting them monthly from our City account. Since then we have developed a few concerns with Healthy Contributions. 1. Starting in November, the company is requiring an automatic debit from the City account or payment to them 15 days after the invoice is sent to the City. Currently the City cannot always meet the 15 day invoicing because of the Council schedule. 2. They no longer support U Care. Right now we have a small number of members that utilize U Care. If we stay with Healthy Contributions, we cannot receive reimbursements for their HMO coverage and as a result we may lose these members. 3. Fees have increased with Healthy Contributions while fees with Vanco have remained the same. Below is a table of fees from both Vanco and Healthy Contributions: Fees Healthy Contributions Vanco/NICHA Monthly Program $49.00/Month $15.00/Month Participation Fee New Member Enrollment $1.50/Enrollment $1.50/Enrollment Fee Additional Health Plan Set $20.00 Per Program Included in Monthly Up ProQram Fee Fee charged by program $20.00 15 cents per participant with administrator to send the . a $40.00 Maximum reimbursement checks to Reimbursed Directly to the City. City's Account Switching to Vanco will save the City money in service fees, offer our members a UCare option, and the NICHA membership will benefit us by offering us seminars, webinars, fitness roundtables and other training for staff. The Vanco contract is the same as the contract we currently have with Healthy Contributions. The only difference is that the fees will no longer be billed to the City. They will be automatically deducted from a City account. The Healthy Contributions contract will also make this change. Gregg Voxland, Finance Director feels in order to monitor the deductions the City should set up an additional bank account to have these fees deducted from. Vanco would have access to this account to deduct the monthly fees. If we do not go with Vanco and discontinue our agreement with Healthy Contributions, we would not offer the Blue Cross Blue Shield and U Care reimbursements which could result in a 30% decrease in membership revenue. The fee deduction process would follow these steps: 1. On the 1 st of the month Vanco will send an email to the City stating how much is being deducted from our account for the necessary fees. 2. The City has until the 15th of the month to contest this amount if we feel it is inaccurate. 3. On the 15th of the month the fees are deducted. VISIONING RELATIONSHIP A. Active and Healthy Community E. Financially Strong REQUESTED ACTION Council is asked to authorize staff to enter into a contract with Vanco and NICHA to administer the processing of the HMO reimbursement program for Blue Cross Blue Shield, Definity Health and UCare. If City Council concurs, move to authorize staff to set up a separate bank account and authorize automatic deduction of fees from Vanco from this account.