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R96-148 AUTHORIZING APPLICATIONS
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R96-148 AUTHORIZING APPLICATIONS
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5/3/2016 2:11:16 PM
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5/3/2016 2:11:07 PM
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Resolution/Ordinance
Res Ord Num
R96-148
Res Ord Title
AUTHORIZING APPLICATIONS FOR GROUP HEALTH INSURANCE COVERAGE
Approved Date
10/21/1996
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The Em lo er furthermore shall use its best efforts to coo erate with and assist the <br /> • p Y , , p <br /> Claim Administrator, as applicable, in the performance of its duties hereunder. <br /> H. The Claim Administrator in its sole discretion reserves the right to pay any benefits that are pay- <br /> able under the terms of this Agreement directly to the Covered Employee or to the Provider of <br /> the service. <br /> The Employer represents that it has communicated the provision specified in the paragraph <br /> above to its employees and that said provision is contained in the Employer's agreement with <br /> its employees to provide health care coverage. <br /> IV. COMPENSATION TO CLAIM ADMINISTRATOR <br /> A. The Employer will pay service charges to the Claim Administrator as compensation for the pro- <br /> cessing of Claims and administrative and other services provided to the Employer. These service <br /> charges will be the following percentage(s) and/or amount(s) and will be applied in accordance <br /> with the provisions of this Agreement: <br /> 1. Administrative Fee: <br /> 6.7% of Claim Payments <br /> $3.05 per Covered Employee per month for the Administration of the Medical Services Advi- <br /> sory Program. <br /> 2. Claim Administrator's Provider Access Fee: <br /> 50% of Average Discount Percentage (ADP) savings for group number 992844 <br /> 25% of Average Discount Percentage (ADP) savings for group number P06856 <br /> . 3. Reimbursement Fee: The Claim Administrator shall be compensated for its administration <br /> of the Reimbursement Provision by retaining 15% of net recoveries made on behalf of the <br /> Employer after attorneys' fees have been deducted. <br /> The service charges will be computed and payable in accordance with the Section below entitled <br /> "Claim Settlements." <br /> B. The service charges,which are guaranteed for a twelve(12) month period from the Effective Date <br /> of this Agreement have been determined in accordance with the Claim Administrator's current <br /> regulatory status and the existing benefit program. Should future legislation or administrative rule <br /> or regulation(i)obligate the Claim Administrator to pay any new taxes or other fees imposed upon <br /> or resulting from this Agreement,or(ii) mandate a new or modify a current benefit,then the Claim <br /> Administrator reserves the right, upon at least sixty (60) days written notice to the Employer to <br /> adjust the service charges within such twelve (12) month period. <br /> C. In addition, the Claim Administrator's compensation for its services under this Agreement shall <br /> include the difference between the Net Claim Payments reimbursed to the Claim Administrator <br /> by the Employer under this Agreement and the net amounts paid to Providers by the Claim <br /> Administrator after giving effect to the Claim Administrator's Separate Financial Arrangements <br /> with Providers. <br /> V. POST PAYMENT <br /> In consideration of the Claim Administrator's obligations as set forth in this Agreement and in recogni- <br /> tion of the fact that Claim Payments will be made by the Claim Administrator prior to any reimburse- <br /> ment by the Employer, the Employer will pay to the Claim Administrator the amount of Net Claim Pay- <br /> ments made pursuant to this Agreement for which reimbursement has not been previously made by <br /> • the Employer to the Claim Administrator, plus the applicable service charges following each weekly <br /> period (the "Payment Period"), as detailed in the Claim Settlement. This payment shall be referred <br /> to as Post Payment. <br /> - 3 - <br />
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