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HomeMy WebLinkAboutBPW-02-01-95-01Employee Comprehensive Medical Program WHEREAS, Ordinance D-1048 passed by the Common Council of the City of Carreel, Indiana, on February 21, 1994, established the City of Carmel Medical Escrow Fund, to be used to accumulate employee and employer premium pa~nnents, and to pay benef its and administrative costs in connection with a comprehensive medical benefits program provided to qualified employees of the City of Carmel and the Carmel Clay Parks Board~ and WHEREAS, the Board of Public Works and Safety wishes to provide certain routine vision benefits to such qualifiedemployees through a fully insured plan~ and WHEREAS, it would be administratively desirable and economically efficient to use the existing Medical Escrow Fund to accumulate the employee and employer premium payments for the vision plan. NOW, THEREFORE, BE IT RESOLVED that the Mayor is authorized and directed to accept employee and employer premiums for the vision benefits and to promptly deposit such pa~nnents into the Medical Escrow Account. BE IT FURTHER RESOLVED that the Plan Supervisor is authorized and directed to pay from such account the full premium due to the insurance carrier by each premium due date. PASSED AND ADOPTED by the Board of ~ublic Works and Safety of the City of Carmel, Indiana, this ~ day of F~J~r7 , 1995. Mem~ ~~ . . Ci'tv o~ carael Revised Procedures ~or Rsndlinq of all Checks. Fundinq & Reoorts Backqround: Mary Dishinger, Kim Zirrillo, Patty Cane and Carole Ketring all met with Jane Reiman and Jan Hope from the City on March 7, 1994. The purpose of this meeting was to work out the de'tails on the handling of various items as a result of the change in checking account procedures. " The City of' Carmel has passed an Ordinance (copy attached) which allows The Nyhart Company to establish a special checking account from which claims payments, on behalf of City insureds, will be processed. The City has made an initial deposit of $100,000 (which is the most 'the account can contain according to the ordin~nce). The process, beyond the initial deposit, will work as follows: Future Denosits: We have supplied the Ci'ty with several signed "claim" forms. Each Tuesday night, we will release checks, provided that there are sufficient funds in the account. The check register(s) will be mailed to the Mayor, Ted Johnson, on Wednesday, along with a cover sheet (see Exhibit A). The Mayor's Office' (Jane Reiman) will attach a copy of our cover sheet to a 'signed "claim" form and send it through the proper routing at the city to get the claim fund at The Nyhart Company reimbursed. When the check is written to reimburso the claim account, the City will deposit it into ouriOgcount #074000146 91150523. A supply of Tax Saver Welfare Benefits Trust deposit" slips (see Exhibit B) and pre-addressed envelopes have been provided to johe City/Clerk-Treasurer to use for these deposits. The Clerk- Treasurer will forward the white copy of the deposit to Marilyn Karnatz, Peoples Bank & Trust, Trust Department, 4th Floor, 130 East Market Street, Indianapolis, Indiana, 46204-3204. The Clerk-Treasurer will maintain the yellow copy for her records and forward the pink copy to the Mayor's office. A representative from the Mayor's office will fax or mail a copy of it to Mary Dishinger at The Nyhart Company so that the deposit may be posted on our system. Future Renorts/corresnondence: All reports, registers, and correspondence should be forwarded to: Mr. Ted Johnson, Mayor City of Carmel One Civic Square Carmel, IN 46032 None of the above should be sent to the Clerk-Treasurer' s office without approval from the Mayor's office. Refund Randlinq: If we should receive refunds which pertain to claims processed March 1, 1994, or after, they should be made payable to the Tax-Saver Welfare Benefits Trust (please request this in your refund letter) and given to Mary Dishinger for deposit into the Tax Saver Account. Mary will complete the deposit form, forwarding the appropriate copies to Marilyn at Peoples and the Mayor's office. If a refund is received which pertains to claims processed prior to March 1, 1994, the refund check should be made payable to the City of Carmel (please request this in your cover letter) and sent to Susan Jones, Clerk-Treasurer, for deposit in the City's medical escrow account. Please note this in the cover letter. . . Ci'ty of Carmel Page 2 COBRA Premium Handlincr. All COBRA premiume received should be forwarded to Susan Jones, Clerk-Treasurer, for deposit into the medical escrow account. We will not be handling future deposits of these monies. Diaabili'tv/Re'tiree Premium Handlincr. These premiuma have been collected and deposited by'the Clerk-Treasurer's office in the past and will continue to be. The Nyhart Company will not be involved with the handling of these monies. Invoicea, All invoices, which are in addition to the normal monthly fees, ahould be forwarded to the Mayor's office for approval. Once the approval has been given, a representative from the Mayor's office will send Mary Dishinger, in writing, approval to issue a manual check for payment. Monthlv Billincr Handlincr. Prior to running the monthly billing and issuing manual checka, the Billing Clerk should check with Mary Dishinger or Kim Zirrillo to be certain there are funds available. ~ Once approval is received, the billing and checks should be run. A copy of the billing and checks should be sent to the Mayor. A representative from the Mayor's office will then complete a 'claim" form and route it through the appropriate channels to obtain reimbursement for the claim fund. Once the reimbursement check is iSBued, it will flow through the same channels as "Future Deposits." Claim HandlinG/Larae Billa. To help monitor cash flow, any claim received where the total charge exceeds $5,000 should be discussed with either Mary Dishinger or Kim Zirrillo prior to processing. It can then be determined if there are appropriate funds to handle the entire claim, if it needs to be broken down into payments, or if we need to seek reimbursement from the reinsurer. If anyone haa any questions regarding these procedures, please get with either Mary Dishinger or Kim Zirrillo to discuss. ~' . i ,,/ -" " .' . PRESENTED by 11Ie <:91 ArrEST: . to the Kayor of the City day of '-'(-J ~-'o .'~f of Carm~~, Indiana this . 199...:r. --T. ~~~.~.~ S an W. ~ Cler reasurer . ",;.,.1 I. ...... '.., .i: . '. . ~ :' :,'" "~"'l .;. ",' " -, :..'h'r""':'\, "t:ft~'.f."'rl... I, " " .' t , .'. "., I~': .., <. . ';-;.::::~I1~;'~i;/;~~)':~. .....,.. , " .' ",.;.'~':)..: r. .... ",.0'" Hi, ,.\ . . ORDINANCE 0-1048 AN ORDINANCE OF THE COHMON COUNCIL OP THE CITY OP CARMEL, INDIANA ESTABLI8HING A CUMULATIVE NON-REVERTING POND FOR TnE CITY OF C1\R.HCL, I:NnXMA SELF-IN8URANCE MEDICAL PLAN WHEREAS, the Common Council of the City of Carmel has established a self-insurance proqram for payment of certain comprehensive rnedical benefits of qualified CitY~mployees, and qualified Carmel Clay Parks Board employees; and WIjEREAS, the Council finds it necessary to establish a fund to accrue employer and employee premiums and anticipated investment revenues ot said premiums to be used solely ~or the payment of certain comprehensive benefits and administrative costs related thereto; and WHEREAS, Indiana Code I.c. 36-1-8-6 provides for. the establishment of a non-reverting cumulative fund for purposes of self-insurance; and WHEREAS, it is the belief of the Cornmon Council that such aforesaid described comprehensive medical self-insurance plan will result in an economic benefit to the city; . NOW, THEREFORE, BE IT ORDAINED by the Cornrnon council of the city of Carmel, Indiana SECTION T: .Eill..bl ishment of city of Camel Medical F.scrow Fund: There is. hereby established a certain medical plan self-insurance cumulative non-revertinq fund to be used for the accumulation of a reserve of monies consisting' of employee and employer premiums and, all anticipated investment reVenues from those premiums, for the purpose of payment of said comprehensive medical benefits and administrative costs for the qualified employees of the City of Carmel and qualified ernployees of the Carmel Clay. Parks Board. A copy of the master medical plan and all subsequent amendments are to be filed in the office of the Clerk-Treasurer. .. Tho fund shall bo known ns tho City of Carmol Medical Escrow Fund. Said fund ~ill include accrued dollars of employee and ernployer premiums, paid to date, in the self-insurance program as. the initial deposit to the City of Carmel Medical Escro~ Fund ~ith all future employer/employee premiums and investment revenues from those premiurns to be added to said fund. SECTYON 2, ,. .-' Withdrawals from CitY. of Carmel Medical F.scrow Fund: It is hereby established that $100,000 will be paid by the Clerk-Treasurer .from the City of Carmel Medical EscroW' Fund to The Nyhart Company hereinafter referred to as the "Plan Supervisor" to bo used by the Plan Supervisor for insurance claims paid according to the Plan and claims submitted by the Plan Supervisor for administrative costs ~hich are d~t~rmined by contractual stipUlations between the City and the Plan Supervisor. The Clerk-Treasurer is hereby authorized to ~ithdraw funds monthly from the City of Carmel Medical Escro~ Fund in an amount totaling the claims submitted by the Plan Supervisor for insurance claims paid aCcording to the Plan and claims submitted by the Plan supervisor for administrative costs. With the exception.. Of ~ititdr.aw'a"t,;. fc'ir"'i'nvestrnent purposes by the Clerk-Treasurer, a~l othri~.distributions from tho City of Carmel Medical Escrow Fund must be app~oved by, the Carmel Doard of public Works and Safety hereinafter. referred to as the II Plan Administrator". : / , , " ',' . . ~,' . ,. i'! ,/ " / 1. c_., _. _ . . . S~CTIon :1: Validation of Claims: It is hereby established that the Plan Administrator shall direct a designee to review claiUls on a monthly basis. In the event it will be necessary to secure credit from the Plan Supervisor due to an error, the Plan Administrator designee will dUly advise the Plan Supervisor and follow-up accordingly to, ensure credit is properly applied to the City's claim submitted by the Plan Supervisor. In the event, the City is unable resolve a claim discrepancy with the Plan Supervisor, the Plan Administrator designee will duly advise the Clerk-Treasurer to reduce the claim submitted by the Plan Supervisor by the total of the discrepancy. " SECTION 4, Sel~-Ynsurancp- Pi"" ~unervigor Pavm~nts. All claims submitted by the Plan Supervisor shall be rorwarded by the Clerk-Treasurer to ,the financial institution (to be naUled by the Plan Supervisor and Plan Administrator) for direct deposit into the special checking account set up by the Administrator to maintain the $100,000 for payments of claims and administrative costs. The $100,000 represents an approximate three (3) month average of total claims and administrative costs for the Plan. This figure may be adjusted by the Plan Administrator as City growth dictates. SECTION 5: Utilization of F.xcess Funds: In the event, City of Carmel Medical Escrow Fund, including all appropriations and any and all income earned thereon, exceeds costs and/or obligations of the City, then the excess shall be utilized as follows, (a) First, to be placed or remain in reserves to prevent excess funding increases due to high claim years and medical coverage. (b) 'Second, to provide additional benefits for the full time employees, the exact details and provisions of which will be established by resolution adopted by the Plan Administrator from time to time. (c) Third, to reduce the employer/employee benefit premiums. SECTTON 6: Fund Accountina: This fund shall be accounted for and maintained separate and apart from all other accounts and invested, if provided by law. SP.CTTON 7: Fund Duration, The life of the non-reverting fund shall be perpetual until terminated by subsequent ordinance duly enacted by the city of Carmel legislative body. PhSSED AND ADOPTED by the Indiana this 02/ day Common Council of the Cit~/_of Carmel, of '1-J JM.. r. ~-:!" . 199.z:... ATTEST: on, Presi ~ 9 Officer . .1 . ~! Treasurer' !'t.',trf,l!.'\. C,:':. .', j (:<,;~. I. ';. i:.,. j" r:l ,,:.' t~n '" " " "~., " ,"1': ,.,j', ... t. ''''. . ,l.;' -'II . . . . . . ' J: