2014 024 Ordinance - Laserfiche WebLink

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Regionalization Program; (b) in the case of a fully-insured political subdivision, develop a fully-insured equivalent rate based upon sound actuarial criteria that is applicable from the Effective Date through December 31, 2017; and (c) in the case of a fully-insured political subdivision, determine whether a Risk Surcharge, not to exceed 15°Io of the charged premium shall be imposed. - It is the County's intention that the operation of the Regionalized benefits program be cost neutral to the County. Political Subdivisions that .wish to participate will pay the County's healthcare consultant a consulting fee as outlined in the Sub-Agreement. This fee has already been incorporated into the quoted rates, however the fee will be paid directly to the consultant. Ongoing Service fees are payable for management of the benefits program for the County's medical and prescription programs. Fees are payable regardless of the number of programs chosen and are subject to change at the discretion of Cuyahoga County. These services are outlined in the 5ub-Agreement. In the Initial Underwriting, the County has sole discretion as to the underwriting guidelines used to determine the eligibility of a political subdivision. The County has the right to deny entry in to the Benefits Regionalization Program for any reason. If a political subdivision is approved for entry in to the Benefits Regionalization Program, the County will waive the Initial Underwriting Fee. Annual Adjustment of Fully-Insured Equivalent Rate On an annual basis, the County shall set a fully-insured equivalent rate for the following calendar year. Annual fully-insured equivalent rate adjustments will be made for each of the annual contract years as required by the program term (3 years). The County has sole discretion as to the underwriting guidelines and actuarial assumptions used to deternune the fully-insured equivalent rate for the following calendar year. The County will provide written notice by November 1 of each year to a political subdivision of the fully- insured equivalent rate for the following calendar year. Annual Adjustment of Administrative Fee and Risk Surcharge On an annual basis, the County shall set the Administrative Fee to be charged to both self-funded political subdivisions and fully-insured political subdivisions. On the initial underwriting, the County shall set the Risk Surcharge, if applicable, for a political subdivision for the term of the agreement (3 years). Annual adjustments for the Administrative Fee and the- Risk Surcharge may be made each year of the agreement. The County has the sole discretion to set the Administrative Fee, at a minimum of 3% and a maximum of 6% of the fully-insured equivalent rate and in the case of a self-funded political subdivision, will be a rate set by the County based upon the services selected. The County also has tlie sole discretion to set the Risk Surcharge, not to exceed 15% of the fully-insured equivalent rate for each sub-division. The County will provide written notice to political subdivisions of the Administrative Fee and Risk Surcharge, if applicable, at the time of entry into the Benefits Regionalization Program. 4