HomeMy WebLinkAboutIR 10071 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10071
To the Mayor and Members of the City Council
r Page 1 of 4
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SUBJECT: FIRE FIGHTER HEALTHCARE UPDATE
On October 24, I made presentation to the City Council with Michael Glynn, President of the International
Association of Fire Fighters Local Association, regarding their proposed provision of a healthcare plan to
active and retired fire fighters and their spouses and dependents. The guiding principles of that negotiation
are:
• Association will assume responsibility of healthcare for all recruits, active fire fighters and pre-
Medicare retirees
• Separation of firefighter plan will not have a negative financial impact on the City; Association will
cover all transition costs
• City's exposure to liability will be minimized to every extent possible
• Association assumes all accountability for the success of their plan
In addition, we indicated that the transition date would occur when we could ensure an orderly
implementation. At that time, staff committed to return to the City Council for consideration of an
amendment to the Collective Bargaining Agreement and a Healthcare Contract based on the following task
list which is updated below since the 11/14/17 informal report.
Action Item Responsible Complete Status
Party
1. City City The City provided a detailed letter to the Association
contribution reiterating the proposed methodology on 11/15/2017.
and transition Initial feedback from the bargaining session on
costs finalized 11/27/2017 noted their objection to paying any cost
increases for the smaller legacy population or direct
costs associated with technical and other expenses to
set up the separate plan. This response conflicts with
the guiding principles to which the Association agreed.
This issue and responsibility for run-off claims have
not been resolved and will be discussed at the next
collective bargaining session that is scheduled on
12/6/17.
2. CBA City and The City sent new drafts of the CBA Articles and the
amendment Association Healthcare Contract to the Association on 11/20/2017,
language as promised. The City received feedback from the
approved Association on Saturday 11/25/2017 and held
bargaining sessions on 11/27/17 and 11/30/17. At the
11/30/17 session, the Association agreed to restore the
City's original proposal to address waivers of right to
sue and indemnification provisions. The City sent
drafts to the Association on 12/4/2017 that should be
final unless the Association has new concerns.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
IINFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10071
To the Mayor and Members of the City Council
Page 2 of 4
SUBJECT: FIRE FIGHTER HEALTHCARE UPDATE
The final requirement for the CBA is the Healthcare
Contract which will be an addendum, requiring
member ratification and City Council approval. The
City received feedback from the Association after the
11/30/17 bargaining session. Unfortunately, the
Association did not offer language to clarify the
financial formula as they had indicated was necessary.
In addition,they still objected to the costs that are
consistent with the guiding principles to which they
had previously agreed. The City returned the next
version of the document to the Association on 12/4/17
for further discussion at the next bargaining session.
3. Employee vote Association The Association tentatively scheduled ratification
to amend CBA meetings the week of December 3. However,these
were canceled due the incomplete Healthcare Contract
and CBA language.
4. Waiver City and
language Association
approved
5. Retiree waivers Association Association is distributing the final waiver to retirees
received and states they have received 199 of 210 required
(100%) signatures. On 11/30/17, the City requested copies of
the correspondence to retirees for our records and has
not yet received that.
6. City Council City Will be scheduled for City Council once 1-5 are
approval of complete.
CBA and
healthcare
contract
7. Association Association The City provided proposed amendments to the
create Trust Association on 11/9/17. The Association provided a
including response on 11/25/17. The document was discussed at
fiduciary the 11/27/17 and 11/30/17 bargaining sessions and the
coverage, City sent the possible final draft to the Association on
contract with 11/30/17 to allow their review with their trust attorney
trust company, who was not available during the 11/30/17 session.
fidelity bond
and banking
arrangement.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10071
To the Mayor and Members of the City Council
„ Page 3 of 4
SUBJECT: FIRE FIGHTER HEALTHCARE UPDATE
8. Association Association Unknown;Association has stated their consultant will
plan contracts handle but has not provided evidence of their
(TPA, PBM, preparation.
RBP); • During the 11/27/17 bargaining session, the
premiums Association and their consultant indicated they had
finalized a quote from Delta Dental. The City indicated that
we have received an unfavorable quote from-Delta
for the smaller legacy population and requested to
see their terms so we could collaborate on getting
best pricing for both groups. The City was advised
by Delta Dental that no quote by the Association
had been requested. The Association confirmed on
11/30/17 that they had just spoken to Delta Dental
on 11/29/17 and were advised that they should be a
subcontract,billed separately under the City's plan.
9. Data interfaces City and • The City met with Maestro,the Association TPA,
with City and Association on 11/10/17 and were advised that they currently
FWERF are only addressing medical and pharmacy and are
not preparing to interface with other vendors for
the Association. The City has not been contacted
since.
• During the 11/27/17 bargaining session,the
Association's consultant indicated they had not met
with the Retirement Fund and recommended
leaving the responsibility with the City which
conflicts with the stated plan. On 11/30/17,the
Association indicated they intend to manage and
have a first meeting with the Retirement Fund on
12/4/17.The City's census file is due to the
FWERF on 12/8/17 which will include retired fire
fighters for the 1/1/18 premiums.
10. Transition and City and • On 11/20/17, the City again requested a scope of
enrollment Association services for Maestro from the Association and
plan again received a menu of services available to all
clients by Maestro.
• At the City's request on 11/30/17,the Association
provided a sample implementation document from
Maestro. It notes a typical cycle of 10 weeks to
initiate a plan and is likely missing a number of
steps associated with additional vendor products
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10071
To the Mayor and Members of the City Council
�aT�• :, Page 4 of 4
s.
:- SUBJECT: FIRE FIGHTER HEALTHCARE UPDATE
that the Association has indicated that they will
manage and will have available with the initial plan
roll-out. At the same time,the Pharmacy Benefit
Manager provided a typical schedule of 60 days.
Attached as Exhibits A and B.
• On 12/1/17,the Association provided a December
schedule from their consultant for 1/1/17 go-live
that fails to reflect the complexity of the
outstanding issues and reflects and extraordinary
pace for a new plan that has not finalized financial
terms with the City. Attached as Exhibit C.
• The City suggested a joint meeting with the
Association, their consultant and third-party
administrator, and the City, would be beneficial to
firm up the necessary timeline,tasks and
responsibilities for an orderly go-live.
The Trust will be responsible for ensuring compliance with HIPPA,the Affordable Care Act and other
complex state and federal laws, including tax compliance. In addition,there will be a myriad of vendor
contracts, tasks with the City and the retirement fund, coverage dispute resolution, etc. that will be the
responsibility of the Trust. As a result, the City has asked the Association for examples of cities
successfully running plans with union members and consultants in lieu of a paid professional staff. This
will be a further point of discussion as the Healthcare Contract continues to be negotiated.
If you have any additional questions,please let me know.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
EXHIBIT A
Maestro Timeline Sample provided 11/30/2017
Task Name Duration Start Finish Assigned To Responsible Group Predecessors Status
Finalist 5d 10/06/17 10/12/17 Client Complete
Result 14d 10/10/17 10/27/17 Client Complete
Win 14d 10/10117 10/27/17 Client Not Started
Sale Notification 14d 10/10/17 10/27/17 Sales In Progress
Implementation Document(Sold Case 2d 10/30/17 10/31/17 Sales 2 In Progress
Form)
Stop Loss Binder Invoice 2d 10/30/17 10/31/17 Underwriting 3 Not Started
Assign Client Manager 2d 10/10/17 10/11/17 Client Services Complete
Implementation Document(Control 2d 10/11/17 10/12/17 Underwriting Complete
Sheet)
Implementation Kickoff 10d 11/06/17 11/17/17 Client Services Not Started
Contracts 5d 11/10/17 11/24/17 Sales,Client Services,Legal 19 In Progress
Contract Execution 5d 11/20/17 11/24/17 In Progress
Internal Implementation Meeting 2d 11/06/17 11/07/17 Sales,Client Services,Legal In Progress
Eligibility 8d 11/20/17 11/29/17 Eligibility,Plan Build&EDI 38 In Progress
Define method of Eligibility set up 8d 11/20/17 11/29/17
Eligibility-Initial 5d 11/20/17 11/24/17
Eligibility-Ongoing 5d 11/20/17 11/24/17
Eligibility-Ongoing-Electronic 5d 11/20/17 11/24/17
WLT Group Set Up 5d 11/30/17 12/06/17 Plan Build 54 Not Started
Service Set Up 5d 12/07/17 12/13/17 Client Service&Service Operation 91 Not Started
EDI 5d 12/07/17 12/13/17 EDI 91 Not Started
Vendor Management"` 10d 12/07/17 12/20/17 TPA Services Not Started
AMPS 10d 12/07/17 12/20/17 Claudia Guillote Complete
PBM Vendor 2d 12/07/17 12/08/17 Claudia Guillote Complete
Plan Documents 5d 12/21/17 12/27/17 Plan Build,Client Services,Compli 95 Not Started
Plan BuildinglPlan Documents 5d 12/21/17 12/27/17
Finance 2d 12/28/17 12/29/17 Finance 111 Not Started
Signed SOW` 2d 12/07/17 12/08/17 Client Services Not Started
WLT Plan Set Up 5d 12/07/17 12/13/17 TPA Services Not Started
Call Center 5d 12/14/17 12/20/17 TPA Services 154 Not Started
PHM Set Up 2d 12/21/17 12/22/17 Care Management 155 Not Started
HSA 2d 12/21/17 12/22/17
Med Management 2d 12/07/17 12/08/17 Care Management Not Started
Case Management 2d 12/07/17 12/08/17 Care Management Not Started
Enrollment Documentation 2d 12/07/17 12/08/17 Client Experience Not Started
Reporting 2d 12/07/17 12/08/17 TPA Services Not Started
Client Reporting 3d 12/07/17 12/11/17 Not Started
ID Card Process 10d 12/07/17 12/20/17 Client Experience Not Started
ID Cards 10d 12/07/17 12/20/17 Client Experience
Open Enrollment 10d 12/07/17 12/20/17 Client Experience Not Started
Compliance Process 3d 12/21/17 12/25/17 Compliance 225 Not Started
Agreements 3d 12/21/17 12/25/17
Audit 5d 11/20/17 11/24/17 Compliance Not Started
UAT 5d 11/20/17 11/24/17 EDI Not Started
Data Cycle 2d 11/20/17 11/21/17 EDI Not Started
Enrollment Communication 10d 11/20/17 12/01/17 Eligibility Not Started
Begin Building 2d 11/20/17 11/21/17 Plan Building Not Started
Web Portal 2d 11/20/17 11/21/17
Training tOd 12/04/17 12/15/17 TPA Services 246 Not Started
Post Implementation 2d 12/18/17 12/19/17 Implementation Manager/Client Esq 261 Not Started
Effective Date 2d 01/01/18 01/02/18 Sales Not Started
EXHIBIT B
Ft. Worth Firefighters
60 Day Implementation Requirements (provided to City on 11/30/17)
KPP will schedule weekly Implementation Calls (same day/time) and invite appropriate attendees. For example, there
will be calls solely discussing IT requirements such as eligibility, claims file transfers, etc.that only certain individuals will
participate.
Requirement— Ft Worth Firefighters Date needed
Contract—Fully Executed Agreement
Status:Awaiting City By 12/31/2017
Plan Design—Copy of current SPD and any changes to plan design By 11/3/2017
that need to be incorporated for new plan year of 1/1/2018
Status:Sent
Plan Design-Signature on completed/approved Plan Design Document By 11/10/2017
Status: To be completed
Group Structure—KPP can create a structure with different levels, by 11/10/2017
such as Active, Retired, etc. if desired
Status: In process
ID Cards—Combined Medical & Rx or one Medical ID Card and One Rx ID Card by 11/10/2017
Status: In process
Eligibility—Provide Eligibility file to TPA for test file to KPP 11/20/2017
Status: In process updated via Maestro
Reporting—determine if any non-standard reporting requirements by 12/27/2017
Status: In process
Member Services Notes—Review and Approve Member Services Help by 12/1/2017
Desk Client specific information
Status:To be completed
Invoice Payments—establishment of bank account/wire Transfer by 12/17/2017
(if payment is direct from client)
Status: In process
Requirement — KPP &TPA Date needed
Information Technology(Status: In process highlighted in yellow, remaining to be completed)
Establish FTP site for exchange of data (eligibility, claims) by 11/15/2017
➢ Agree on File Formats by 11/10/2017
➢ Test Files transferred between KPP &TPA by 11/27/2017
➢ Initial Production file load by 12/6/2017
➢ Online System Access—eligibility, reporting, claims history, etc. by 12/6/2017
➢ Training for online system by 12/17/2017
➢ Final Production File for Eligibility by 12/17/2017
➢ Final Production File for Claims data exchange by 12/20/2017
ID Cards—1st draft if combined Medical/Rx by 11/10/2017
ID Cards—Final Approval by 12/1/2017
ID Cards—Print and distribute by 12/17/2017
Invoice Distribution—establishment of process/contacts by 12/17/2017
Invoice Payments—Establishment of bank/wire transfer by 12/17/2017
EXHIBIT C
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