HomeMy WebLinkAboutContract 48318 CITY SECRETARY"
= CONTRACT NO.
PART B FORMALTHIRD PARTY GROUP PAYER
AGREEMENT
'RECENED Between
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The Secretary of the Department of Health and Human Services
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emofFORT)IDM The City of Fort Worth,Texas
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[Formal Third Party Group Payer]
Whereas,The City of Fort Worth,Texas–(hereinafter"Formal Third Party Group Payer")
desires to enter into an arrangement with the Secretary of Health and Human Services,to pay the
Medicare Part B premiums on behalf of a group of Eligible Individuals,the Secretary and the
Formal Third Pg!y Group Paver hereby agree to the following:
A. Definitions
For purpose of this agreement—
(1) "Secretary"means the Secretary of Health and Human Services or his/her
delegate.
(2) "CMS"means the Centers for Medicare & Medicaid Services,formerly the
Health Care Financing Administration.
(3) "Act"means the Social Security Act.
(4) "Premium"means money paid out in advance(usually monthly) for insurance
coverage.
(5) "Formal Third Party Group Payer"means an employer, a lodge,union, or other
organization that has entered into a formal agreement with CMS to receive a
single bill and pay for the Part B premiums on behalf of a group of Eligible
Individuals.
(6) "Eligible Individuals"means individuals who (1)are currently enrolled under
Medicare Part B (Supplementary Medical Insurance) and (2) are billed directly by
CMS for their Medicare premiums.
(7) "Beneficiary"means an individual who is enrolled in Medicare Part B.
(8) "Late Enrollment Premium Surcharge"or"Premium Surcharge"means the
amount Medicare assesses in addition to the monthly Part B premium for
individuals who enroll after the expiration of the initial enrollment period,but not
in a special enrollment period, or who re-enroll after termination of a coverage
period as authorized by section 1839(b)of the Act.
(9) "Participant"means an Eligible Individual who has authorized a Formal Third
Party Group Payer to pay Part B premiums on the individual's behalf in
accordance with regulations at 42 CFR Subpart E.
(10) "State Buy-in"means the program under which a State Medicaid Agency may
enter into an agreement with the Secretary to enroll and pay Medicare Part B
premiums for members of the buy-in group specified in that agreement, as
authorized by section 1843 of the Act.
(11) "Formal Third Party Group Payer Handbook"means the guide provided to a
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Formal Third Party Group Payer by CMS that contains the policies and
procedures governing the payment of Medicare premiums by a Formal Third
Party Group Payer as modified from time to time by CMS.
B. Terms of Agreement—
(1) Formal Third Party Group Payer voluntarily enters into this agreement without
expectation of reimbursement from CMS for administrative expenses attributable
to carrying out this agreement.
(2) Formal Third Party Group Payer may only pay Part B premiums on behalf of
Eligible Individuals.
(3) Formal Third Party Group Payer may not pay Part B premiums for beneficiaries
who are eligible for Part B premium deduction from a benefit check.
(4) Formal Third Party Group Payer may not pay premiums for beneficiaries whose
Part B premiums are being paid by a State Medicaid Agency under a buy-in
agreement.
(5) At the time this Agreement is executed, Formal Third Party Group Payer must
have a minimum of 20 Participants.
(6) Formal Third Party Group Payer must obtain written authorization from the
Participant for CMS to send bills and release information to the Formal Third
Party Group Payer,
(7) Formal Third Party Group Payer must not charge any Participant for any
administrative or other expenses incurred by the Formal Third Party Group Payer
in carrying out this Agreement.
(8) An eligible individual will not be billed by CMS for Part B premiums during any
month in which the individual is a Participant included in a Formal Third Party
Group Payer arrangement. CMS will resume collection of the Part B premiums
from the Eligible Individual in accordance with section 1840 of the Act if the
Formal Third Party Group Payer agreement is terminated, if the Eligible
Individual is no longer included in the Formal Third Party Group Payer
arrangement, if the Formal Third Party Group Payer fails to pay, or if the Formal
Third Party Group Payer identifies the payment incorrectly.
(9) Formal Third Party Group Payer must pay all current Part B premiums, including
any Late Enrollment Premium Surcharge, for any Participant included in its
Formal Third Party Group Payer arrangement.
(10) Formal Third Party Group Payer is responsible for any outstanding premium
balance on a Participant's record when a Participant is initially added to the
Formal Third Party Group Payer arrangement.
(11) Formal Third Party Group Payer must transmit and receive all data electronically.
All requirements for electronic data exchange are contained in the Formal Third
Party Group Payer Handbook.
(12) In the event of a change to the data transmission requirements, CMS will give the
Formal Third Party Group Payer notice of such revisions.
(13) Formal Third Party Group Payer is responsible for supplying CMS with a file that
contains records of Participants that it intends to add to the Formal Third Party
Group Payer arrangement. Formal Third Party Group Payer may add Participants
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monthly. CMS' Third Party System will automatically generate an effective date
for the addition. In instances where CMS records indicate that there is an
outstanding premium balance due from the Participant for a previous month(s),
the effective date of the addition will be the earliest month for which a Part B
premium is due. In instances where there is no outstanding premium balance, and
Formal Third Party Group Payer transmits an addition record to CMS by close of
business the next to the last business day of the month,the effective date of the
addition will be the next billing month. For example, if Formal Third Party
Group Payer transmits an addition record on the 200'of January, the effective date
of the addition will be February. If Formal Third Party Group Payer transmits an
addition record to CMS after close of business the next to the last business day of
the month, and there is no outstanding premium balance,the effective date of the
addition will be the month after the next billing month. For example, if Formal
Third Party Group Payer transmits an addition record on the 31St of January,the
effective date of the addition will be March. If Formal Third Party Group Payer
seeks to add as a Participant an enrollee who is not an Eligible Individual, CMS
will reject the addition and notify Formal Third Party Group Payer that such
enrollee is not eligible to participate in the group.
(14) Formal Third Party Group Payer is responsible for supplying CMS with a file that
contains records of Participants that it intends to remove from the Formal Third
Party Group Payer arrangement. Where Formal Third Party Group Payer is
removing a Participant because the Participant died,the removal record must
contain the date of death. The effective date of the removal will be the month
after the month in which the Participant died. Formal Third Party Group Payer
will receive a credit refund for premiums that were paid on the Participant's
behalf for any months after the month in which the Participant died. For example,
if Formal Third Party Group Payer transmits a removal record in May to remove a
Participant who died on January 1 of the same year,the effective date of the
removal will be February. No premiums are due for February or beyond and
Formal Third Party Group Payer will receive a credit refund for premiums paid on
the Participant's behalf for February and beyond. In instances where Formal Third
Party Group Payer is removing a Participant for reasons other than death,the
removal record should not contain a date. When the removal record is received
by CMS by close of business the next to the last business day of the month,the
effective date of the removal will be the next month. Therefore, no premium will
be due for the next month and Formal Third Party Group Payer will receive a
credit refund for premiums that were paid on the Participant's behalf for that
month. For example, if Formal Third Party Group Payer transmits a removal
record on the 20th of January,the effective date of the removal will be February.
No premium will be due for the month of February and Formal Third Party Group
Payer will receive a credit refund for premiums paid on the Participant's behalf
for February and beyond. When the removal record is received by CMS after
close of business the next to the last business day of the month,the effective date
of the removal will be two months after the month the removal record is received.
Therefore, a premium payment will be due for the next month and Formal Third
Party Group Payer will receive a credit refund for premiums that were paid on the
Participant's behalf for any months that are 2 months or more after the month in
which the notice was received. For example, if Formal Third Party Group Payer
transmits a removal record on the 31 sc of January,the effective date of the
removal will be March. A premium will be due for February and Formal Third
Party Group Payer will receive a credit refund for premiums that were paid on the
Participant's behalf for March or beyond.
(15) CMS may remove a Participant when CMS records indicate that the
Participant died; is eligible for Medicare Part B deduction from a benefit check;
does not meet all the requirements for Medicare; withdrew or was terminated
from Medicare. CMS may also remove a Participant if a State Medicaid Agency
is paying the Part B premium under a State Buy-In Agreement. Formal Third
Party Group Payer will receive a credit refund for premiums that were paid on the
Participant's behalf for any months after the month in which any of these
situations occur.
(16) Formal Third Party Group Payer must pay Part B premiums through the month
the Participant was removed from its Part B premium payment account, or
through the month the Participant died, withdrew or was terminated from
Medicare.
(17) If the Formal Third Party Group Payer discontinues payment of the premium on
behalf of a Participant for any reason other than death,the Formal Third Party
Group Payer must notify the Participant that he/she is liable for the Part B
premiums.
(18) Formal Third Party Group Payer will be billed monthly by CMS and must pay the
Part B premium amounts, including any Late Enrollment Premium Surcharge and
any outstanding premiums due for all Participants identified by Formal Third
Party Group Payer. The premium payment is due the first day of the month. If
payment is not received by the 30th day after the due date, CMS will notify both
the Formal Third Party Group Payer and the Participant that the payment is
delinquent. If payment is not received by the 60th day after the due date, CMS
will terminate this Agreement.
(19) All payments must be paid via electronic funds transfer,utilizing either the
U.S. Treasury Department's electronic funds transfer system(Fedwire) or U.S
Treasury Department's internet based system known as Pay.gov. Specifications
for electronic payments are included in the Formal Third Party Group Payer
Handbook.
(19) If Formal Third Party Group Payer disputes the amount of the premium bill under
the Agreement,the Formal Third Party Group Payer must provide evidence to
substantiate its position and CMS will evaluate the evidence presented. Formal
Third Party Group Payer must continue to pay its premium bill in full including
any disputed amounts. If CMS determines that Formal Third Party Group Payer
was billed and paid premiums in error, CMS will reflect any premium refunds as
an adjustment to the subsequent bill.
(20) This Agreement may be terminated by Formal Third Party Group Payer or CMS
by giving the other party 30 days written notice. Premiums continue to accrue
during the 30-day notice period. All premiums due on or before the effective date
of the termination must be paid within 30 days after the termination date. CMS
may terminate this Agreement without notice if it finds that the Formal Third
Party Group Payer is not acting in the best interest of the Participant or if the
billing arrangement proves to be inconvenient.
(21) All documents, data and information provided to the Formal Third Party Group
Payer under the Agreement shall be used solely for the purpose of complying with
the Agreement. Formal Third Party Group Payer must adopt policies and
practices to ensure that information contained in its records and obtained from
CMS, or from others in connection with carrying out the Agreement shall be
disclosed only as provided in The Privacy Act, section 1106 of the Act and
regulations promulgated thereunder.
(22) The Formal Third Party Group Payer must abide by the terms of this Agreement
and instructions associated with this payment arrangement contained in the
Formal Third Party Group Payer Handbook as modified from time to time.
(23) Formal Third Party Group Payer must comply with CMS' regulations at 42 CFR
section 408, Subpart E, governing group payments.
(24) The Agreement is non-transferable and remains in effect until terminated
by either party in the manner specified herein.
The City of Fort Worth, Texas
Name of Formal Third Party Group Payer
By9 a-'1 I a-V (co
S san Alanis,Assistant City Manager Date
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Employer Identification Number
Secretary of Health and Human Services
By
Title <irc i; 'bp
Date
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APPROVED AS TO FORM AND LEGALITY: e ,
Want tAttorney
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Mary J. KayserXiSecrawy