R98-142 AUTHORIZING AGREEMENT - Laserfiche WebLink

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DEPARTMENT OF FINANCIAL MANAGEMENT RISK MANAGEMENT DIVISION MEMORANDUM NU. 98-078 October 14, 1998 TO: The Honorable May r and City Council Members FROM: James L. Williams, , City Manager � Beth B. Couter, Di ctor of Financial Management �� J. Barry Leonard, Risk Manager�� SUBJEC`T: Flexible Spending Account Administrator Tratismitted herewith is a Resolution Authorizing Agreement with �Iista Administrators, Inc. for third party administration of the City's Flexible Spending Account (FSA) for the 1999 contract year. Ft. Dearborne, aur current FSA Administrator, notified us that as of January 1, 1999, they will no longer administer FSA's. Staff sent out fifteen Requests for Proposals (RFP) for a new F5A administrator and received four responses. Based on overall program costs, we selected two finalists, Health Plan Management of Lake Bluff and Vista Administrators, Inc. of Aurora. A phone survey of current and past clients was conducted on each finalist. The comments on Vista were all laudatory with frequent reference to Vista's "quick response" to client questions or problems. The comments on Health Plan Management were very mixed. They received high marks for health claim processing but only "fair" for FSA processing. A cost comparison between them shows that Health Plan Management's monthly fee would be less than Vista's but if we face similar problems, as current clients have, it will create participant displeasure leading to reduced participation. The current participation does save the City more than $16,000 per year in payroll taxes. Vista's monthly fee is the same as the current administrator. Given the cost considerations and client service reputation, staff recommends Vista Administrators to be our new FSA administrator.