HomeMy WebLinkAboutGallagher Benefit Services Inc-11/8/2010Gallagher Benefit Services, Inc.
October 14, 2010
Ms. Suzy Schares
City Clerk
City of Waterloo
715 Mulberry Street
Waterloo, IA 50703
A Subsidiary of Arthur]. Gallagher & Co.
Re: Proposal to Provide Benefit Consulting and Actuarial Services
Dear Ms. Schares
As requested, Gallagher Benefit Services, Inc. (GBS) is providing this proposal to provide
ongoing benefit consulting and actuarial services to the City of Waterloo. This letter will outline
our proposed scope of services, our service team, timeline for delivery of services and our fees.
Scope of Services
GBS is proposing to provide the following recurring benefit consulting and actuarial services to
the City.
1. Assistance with filing the City's application to receive Early Retiree Reimbursement Plan
(ERRP) funding as provided under the Patient Protection and Affordable Care Act
(PPACA) of 2010. Our assistance will included reviewing and critiquing the City's
application prior to submission and, if approved, assistance with the claim filing process.
We would coordinate the data required of the City's health plan vendors required to file
claims for reimbursement.
2. Assistance with complying with the health plan requirements of PPACA. This would
include the development of a City specific health care reform planning calendar which
will highlight required plan changes and effective dates for 2010-2018. We would
coordinate all required health plan changes with the City's vendors to assure timely
compliance.
3. Assistance with annual self-funded plan rate and reserve funding rates. After analyzing
the City's health plan revenues and expenses, we would develop recommended annual
funding rates and reserve margins. Should the City want to explore benefit plan design
changes, we would model the cost impact of these changes using GBS' proprietary
actuarial modeling software.
6399 South Fiddler's Green Circle
Suite 200
Greenwood Village, Colorado 80111-4949
303.220.7575
Fax 303.220.7010
Ms. Suzy Schares
October 14, 2010
Page 2
Timeline
Assistance with the City's ERRP application would begin immediately upon being retained. We
have provided similar services to many clients and our team is very familiar with the application
process and technical requirements. Our services would continue through the application,
approval and claim submission phases. It is anticipated that the available federal ERRP funds
will be exhausted after the first year of the program; however, if there are funds available in the
second year of the program, we would continue to assist the City.
Upon being retained, it would take us approximately 30 to 45 days to gather the benefit plan
data needed to complete a PPACA implementation planner and schedule for the City. Once
completed, we would review with the City in detail by conference call or, if preferred, in person.
After the completion of the planning document, we would then assist the City in implementing
necessary changes required to comply with PPACA. We will also be available to assist with any
financial analysis needed to determine the cost of various alternatives for compliance that would
be available to the City.
Depending on the City's budgeting cycle, we would start the development of the next year's
funding rates and reserve requirements when directed. Most of our Iowa public sector clients
prefer to have six months of current plan year experience before developing rates for the next
fiscal year. If the City adopts a similar schedule, we would begin developing preliminary
projections by mid-February 2011 for the City's July 1st plan year. Preliminary projections would
be updated based on additional claim experience. If benefit modifications are considered, we
would then model the cost impact of any changes under consideration.
Client Service Team
Our City service team would consist of the following individuals, all of whom have extensive
Iowa public sector experience.
• Managing Consultant: William (Bill) F. Robinson, Jr., Area Senior Vice President
• Client Consultant: Dutch Ross IV, Senor Client Consultant
• Health Actuary: Glen Volk, FSA, MAAA, Area Senior Vice President
• Client Manager: Barbara Batt, CEBS, Senior Client Manager
• Technical Consultant: Tia Paulson, Technical Consultant
Resumes of client team members are included with our proposal
Proposed Compensation
Our fees to provide the scope of services above are $5,000 paid in equal quarterly installments
of $1,250. Our fee is guaranteed not to increase for at least two years. Future fee increases, if
requested, would not exceed 4% per year as long as the scope of services remains unchanged.
All of the services provided above can be provided without having to meet in person with the
City. Should a meeting be required, travel expenses would be billed to the City. We do
anticipate meeting with other clients in the area next Spring and if a meeting was desired at that
time, travel expenses would be shared equally with all clients.
S:Ukus-m-z\Waterloo Iowa, City of12010\Other\City of Waterloo Proposal 10,10.doc
Ms. Suzy Schares
October 14, 2010
Page 3
We sincerely hope to have the opportunity to expand our existing business relationship with the
City by providing the services described above. Please let me know if I can provide any
additional information about our firm or our proposed services.
If this proposal is acceptable, please indicate below and return a copy of the signed letter for our
files.
Sincerely,
u;
William F. Robinson, Jr.
Area Senior Vice President
cc: Michelle Weidner, City
pied on B a the ity of Waterloo:
Name -"- & • Gam- Title
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