01-20-05 Chapter 172 Employee Retiree Insurance and Benefits Board Meeting

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that is based on sound underwriting principles that are the foundation for gauging and managing risk efficiently. C-CBS is going to be spending a significant amount of time "selling" this Co-op to the carriers. As stated, we do not want to self fund this risk at the onset. We want the carrier to insure the risk, let the claims mature, and then begin to take control of the funding mechanism. 3. Assist all member entities with data formatting for group risk evaluation. We will be spending time with each member entity as you begin to pull RFP data from your member entity current group medical plan. Information is the foundation for underwriting methodology. All member entities will have to be diligent in this area and C-CBS will be there to guide you through this process and assist you where necessary to pursue this request with your current vendor. We will be providing a detailed format request. 4. Develop an RFP for Group medical coverage. Once again, the most important lynch pin to our success. This will be the most time consuming step in the process. C-CBS will comply all data into an electronic submission instrument to be sent "directly" to all qualified vendors. 5. Monitor the RFP process. This is not the time to sit back and enjoy the ride. C-CBS will be very proactive during the RFP process which will take 45 days or so. (Q and A) will be standard procedure, clarifying positions, negotiating underwriting terms and conditions, dealing with ongoing medical conditions, pulling and punching our way to the finish line. C-CBS will be participating in a big way during this phase. 6. Provide detailed RFP evaluation! Advise Board on awarding Contract. C-CBS will present data in spreadsheet fashion. This is The Boards decision, not ours to make. Yes we will playa significant role in an advisory capacity, but ultimately, this decision is yours to make for your covered entities. This phase will involve comparative detailed analysis, clarifying terms and conditions, negotiating best terms and conditions, and. setting up a presentation phase by all finalists. 7. Assist Board members with Council presentations. A representative from C-CBS will be available for member entity Council workshops and Council meetings for awarding of your 2005/2006 group medical contract if an HGAC-Rl contract is finalized and awarded by The Board. Process steps (1-7) will take a commitment from all interested member entities. C-CBS welcomes the opportunity to playa leadership role in this exciting project. We would like to present, for consideration, a fee for time, expenses, and services incurred by C-CBS during the next several months in order to deliver on above referenced action items. C-CBS is proposing a retainer fee of $25,000 to be split evenly among participating member entities. It appears that this could be approximately $2,500.00 on the low end and $4,000.00 - $5,000.00 on the high end.