HomeMy WebLinkAbout496904 UMR INC - CONTRACT - RFP - 7241 BENEFITS - MEDICALPRELIMINARY STATEMENT OF AGREEMENT n FP
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Effective January 1, 2012, UMR, Inc. ("UMR") and City of Fort Collins ("Plan Sponsor") agree
that UMR shall provide certain third party administrative services for the Plan Sponsor's self -
funded employee benefit plans. The intent of the parties is to establish a formal Administrative
Services Agreement that fully discloses each parry's duties, rights and obligations; and that
discloses applicable fees for services being purchased by the Plan Sponsor. It is understood,
however, that before the Administrative Services Agreement can be prepared, a series of
transition meetings need to take place between UMR and the Plan Sponsor to make final
decisions regarding services to be provided. In the interim, this Preliminary Statement of
Agreement will reflect the intent of both parties to begin providing services.
Covered Plans
UMR shall provide certain mutually agreed upon administrative services for the following
employee benefit plans of the Plan Sponsor:
CORE PPO Medical Plan
ADVANTAGE PPO Medical Plan
Fees
During the course of the transition meetings described above, Plan Sponsor will finalize
decisions regarding the services that it will purchase from UMR. Fees for those services
will be reflected in the actual Administrative Services Agreement that will be sent to the
Plan Sponsor within a reasonable amount of time after the transition meetings have
been completed. The anticipated base administrative fee(s) that UMR will charge Plan
Sponsor to process claims is listed below, however this could change if Plan Sponsor
makes changes during the transition meetings. All other fees including the base fee will
be listed in the Administrative Services Agreement to reflect the decisions that the Plan
Sponsor makes during the transition meetings. The Plan Sponsor agrees to pay UMR
the applicable service fees in a timely manner so that UMR receives the payment on or
before the last day of each calendar month for which services are rendered.
Medical Plan Base Fee: $15.95 per employee per month.
All other fees will be listed in the Administrative Services Agreement.
Relationship of Parties
Both parties agree that UMR is not providing an insurance policy or an indemnity
agreement, and that Plan Sponsor is simply purchasing administrative services from
UMR. It is further understood and agreed that the relationship between UMR and Plan
Sponsor is that of independent contractor.
IV. Run -In Claims Processing:
It is understood and agreed that should UMR be requested to process run-in claims for
Plan Sponsor, Plan Sponsor shall assume responsibility and liability for complying with
ERISA and the Department of Labor's claims regulations, if applicable. Plan Sponsor is
fully and solely responsible for any risks associated with stop loss carriers as it relates to
run-in claims, and holds UMR harmless with respect to such stop loss problems. Plan
Sponsor further agrees to supply UMR with all pertinent eligibility, benefit and other
information that UMR deems necessary to process run-in claims.
V. Termination and Definitive Agreement:
Either party may terminate this Preliminary Statement of Agreement upon written notice
to the other. This Preliminary Statement of Agreement will expire ninety (90) days after
the first effective date of the Plan Sponsor with UMR. The parties agree to negotiate in
good faith to attempt to reach a final definitive Administrative Services Agreement within
the ninety (90) day period.
This Preliminary Statement of Agreement will automatically terminate in the event that
Plan Sponsor fails to provide sufficient funds with which to pay claims or other liabilities
under the Plan(s), or a petition is filed by or with respect to the Plan Sponsor under the
Federal Bankruptcy Act or any state insolvency law.
Agreed to on behalf of UMR
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Jay Anliker, President and CEO
Date Signed:
Agreed to on behalf of City of Fort Collins
Legal name of Customer/Plan Sponsor)
By:
Print a e:
Title:2<)2 R Ls
Date Signed:C�/('�
Revised 10/31/08