D~a~ o~i. y 1• ~ COMMISSIONERS' COURT AGENDA REQUEST PLEASE FURNISH ONE ORIGINAL AND NINE COPIES OF THIS REQUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT. MADE BY: Barbara Nemec OFFICE: Treasurer MEETING DATE: June 26, 2006 TIME PREFERRED: A.M. SUBJECT: Consider, Discuss and take appropriate action on Implementation of Process Works, Inc. and have County Judge sign same E..:,CUTIVE SESSION REQUESTED: (PLEASE STATE REASON) NAME OF PERSON ADDRESSING THE COURT: Barbara Nemec ESTIMATED LENGTH OF PRESENTATION: 3 mins. IF PERSONNEL MATTER -NAME OF EMPLOYEE: Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter 551 and 552, Government Code, is as follows: Meeting scheduled for Mondays: 5:00 P.M. previous Tuesday. THIS REQUEST RECEIVED BY: THIS REQt1EST RECEIVED ON: l~ All Agenda Requests will he screened by the County Judge's Office to determine if adequate information has been prepared for the Court's formal consideration and action at time of Court Meetings. Your cooperation will be ap„~eciated and contribute towards you request being addressed at the earliest opportunity. See Agenda Request Rules f ~ted by Commissioners' Court. '~'OCeSSWO/'ICS/NC.'° Health Reimbursement Arrangement (HRA) r`rt'"y"""` `° "°`s"""°~ Implementation Workbook SECTION I: Employer Information Legal Company Name Kerr County D/BIA Name (itapplicable) PresidentlOwner Decision Maker MutuatGrouplD G000487A Federal Tax ID # 74-6001194 ..General phone Number 830 792-2211 Street Address 700 Main Street City Kerrville State TX Zip Code 78028 Primary Contact Barbara Nemec Dept/TiUe County Treasurer PhoneNumtier 830-792-2275 Fax Number 830-792-2277 Contact£-mail bnemec@co.kercix.us Secpndary.Contact Jacqui Magenheimer DeptlTitle Secretary for County Treasurer .littone Number 830-792-2275 Fax Number 830-792-2277 contact Email jmagenheimer@cc.kerr.tx.us Nature of Business County Administration NAICS Code 921000 usiness Entity Type ^ Corporation ^ S-Carp (Individuals owning more than 2% and/or family members cannot participate in the plan) ^ LLC (For income tax purposes, treated as a partnership: members cannot participate in the plan) ^ LLP (Partners cannot participate in the plan, nor can their spouses) ^ partnership (Partners cannot participate in the plan) ^ Non-Profit ^ Church ® Municipality ^ Sole Proprietorship (Owner cannot participate in the plan) Legal Company Name Federal Tax ID Number Affili t /S idi b a e u s ary Companies 6/202006 SECTION II: Effective Date/Plan Year Information/Plan Eligibility Effective Date with 7/1/06 Number of Eligible 270 ProcessWorks Employees ,.d n Year Begin Date 1/1 End Date 12/31 Short Plan Year Begin Date End Date (if applicable) *Nlid-year Takeover (if applicable) Takeover Date 7/1/2006 Plan Year Dates 1/1/2006-12/31/2006 Original Effective Date ! 1!1/05 I Plan Number 1502 of your existing Plan A Plan Number Is a 3-tligit 500 series number assigned to welfare and fringe benefit plans beginning with 501 Numbers should be assigned to your benefit programs sequentially and plan numbers should not be reused. Be sure to check other benefit plans and assign the three-digit number accordingly. For existing plans, this number and your orginal effective date can be found in the Summary Plan Description or previously filed Form 5500 return(s), Plan Eligibility Parameters Eligible Class of All full-time employees enrolled in the health plan exlcuding temporary employees Employees Ex: All employees enrolled in high deductible health plan ^ Date of Hire New Hire First of the month following 99-deyE~ or ~ month(s) of employment Waiting Period ^ Following day(s) or month(s) of employment ^ Other (please provide details): venires receive one t-rvA amount perplan year ano corresponds to the medical deductible handling for the plan year. If medical coverage is terminated and r^-stated in the same plan year, the deductible left to satisfy and the HRA remaining balance at termmafrbn wi!! be reinstated. SECTION III: Checking Account Information Reimbursements are issued from an employer checking account. To avbid trusYrequirements, use a general asset account or establish an account(a sweep or controlled disbursementaccount) in the employer name, no! the plan name. ProcessWorkswillprovide the necessary forms to capture the checking. account information.. Account Information ^ Same as Legal Name Other, please list name (Client owned bank account checking information) Account Name ®Use PWI Account (if daily processing and/ordebit card feature are selected this option will require pre-funding of a Process Works owned account.) Theforms listed below will be provided by ProcessWorks. Please complete and return along with avoided check or MICR check IayouYno later than two (2) weeks priorto theplan effective date. If debit card feature Required Forms isoffered bankin forms should bereturned no later than four 4 weeks rior to the laneffective date. 1. Authorizationdo Debit/Client Requirements 2. Check Signature Form (not required forPWl Account) 3. Debit.Card Client Requirements & ACH Authorization Form fif applicable) Email Information (Check registers are emailed Contact Name Barbara Nemec Email bnemec co.kerc.tx.us weekly to ova or two individuals. Please indicate to whom these Contact Name Email should be directed.) 6!20/2006 SECTION IV: Debit Card Information (if applicable) Card transactions occur daily and debits for total daily transactions will be made from the employer checking account each day. Employee ~munication and employer understanding and support of the substantiation process are critical to the success pf the program. Cards will ordered once we receive the signed employer authorization form/agreement and the enrollment data has been loaded into the Process Works system. Allow a minimum of four (4) weeks after data has been received for delivery of cards. If participants ordered a second card, it will arrive in a separate envelope. Indicate below if the card option is elected. If the card option is elected, please attach a schedule of benefits clearly indicating the prescription drug and office co-pay amounts. ^ No Debit Card Offered ®Yes ' Debit card services are available for HRA plans that reimburse all Internal Revenue Code 213 expenses, provided the HRA plan is the first level of reimbursement with no employee cost share responsibility prior to HRA benefits. The debit card is not available for any other type of HRA plan design. SECTION V: HRA Plan Benefits H! Hi mi Pr ad im Plan Year HRA $ leer Eligible Employee Contribution Amount $600/Single $ / EE +1 $1800/Family Expenses eligible under the HRA ^ All code 213 expenses (includes dental, vision, RX and over-the-counter) -(Employees are reimbursed for: (1) all IntemalRevenue Cade 213 expense, or ~ Health plan out-of-pocket (deductible, co-insurance & copays (2). health plan deductrbte expenses inlcuding RX) only, or (3)a specific type o/health related expenses up to an allowable ^ Specifc expense, please list maximum amount each plan yeas) (i.e. dental only, vision only) ^ No ®Yes, if yes will prescription expenses appear on EOB Prescription Expenses allowed for reimbursment under the.HRA ^Yes (EOB will be required as documentation. Pharmacy RX .plan receipts will be denied.) ® No (EOB will be not be required. Pharmacy RX receipts will be 2A Plan Design accepted as documentation.) to pian designs .Insurance Premiums allowed for ®No ust be approved by reimbursement under the HRA ^Yes, if yes please check all that apply 0005Stlt/OrkS In plan. ^ Medicare Part B ^ Retiree Medical ^ COBRA ^ Long Term Care vance of plan ®Yes plementation. HRA reimbursement funds available from 1~t dollar of ^ No, if no list employee responsibility below incurred eligible expense $ /Sin le $ / EE +1 $ /Famil ^ No Unused Funds Carryover from ~ Yes, please list carryover amount Year to Year ®100% ^ 75% ^ 50°/ ^ 25% ^ Other $3000.00 Maximum Account Balance or ^ Unlimited Employee Access of HRA Contribution ®Start of Plan Year ^ Monthl y ^ Per Pay Period ® No Do you also sponsor an FSA ^Yes, if yes and your HRA plan design is "All 213 expenses" please program indicate will account should be accessed first. ^ HRA pays 1~'/FSA pays 2nd ^ FSA a s 1~tlHRA a s 2n° 6,202(NIb SECTION VI: Claim Processing Parameters Standard serviceincludes reimbursements issued weekly; however you may. elect daily reimbursements. Reimbursements are made from an employer checking account by 1) check sent to the participant home or 2) by direct deposit to a bank account of the participant's choice. keimbursement Frequency ~ tnfeekly on Thursday ^ Dail Y .Run-out Period t# of days allowed to submit Run-out period Run-out period l i ft f th l h d Active employees Terminated emplo ees c ms a er [ e en a o e p an year This does not apply to accounts with balance carryover ^ 30 days ^ 60 days ®90 days ^ 30 days ®90 days ^ End of plan year + gctive run-out feature.) Incur Period for Terminated .Employees (# of days allowed to incur claims ^ 0 days ^ 30 days ^ 60 days ^ 90 days ®End of month employee terminates after terminationdate) *Intertace between Mutual's medicaURx claim system and FSA system for automatic payment of deductible, co-insurance and/or copays The claim. rollover applies to covered employees. and/or dependents that are enrolled In both the medical plan antl FSA and do not have coveragethrough another heafthplan -COB (if FSA funds available Claim Rollover Intertace* ®No ^ Yes, if yes and also offering an FSA option, the FSA must include the claim rollover interface for coordination between accounts to work effectively. Debit card is not available when a claim rollover Intertace is selected. ® No Health Savings Account Do you Sponsor an HSA? ^ Yes (If employees participate in both HRA and HSA, the HRA must be considered one of the following: limited purpose HRA, post-deductible HRA, suspended HRA or retirement HRA) SECTION VII: Management Reporting e.nanges(new employees, change in election amounts, terminations) are reported via paper form (proviied by ProcessWorks) or by electronic filefeed... Management reports are available online 24/7.. Following receipt of the executed documents, you will be provided a User name/1'assword toaccessShe employer portal. Reports areavailable in alphabetical order, or by divisional reporting. Report Format ^ Alphabetical ®Divisional (Please provide division listing below. Enrollment data must contain divisions.) Division N Active Employees Division A0001 ame Code Division N Retirees Division R0001 ame Code Division Division Division Information Name Code Division Division Name Code Division Division Name Code Division Division Name Code JCl*IIVIV VIII:ImplemenLaLIOn000UfnentS Upon receipt of this completed Implementation Workbook, the following documents will be. provided. The documents should be reviewed, executed andreturned to ProcessWorks as soon as possible. Checking Account Information -ProcessWorks will provide a description of the checking account as well as a signature form. Debit Card Authorization/Substantiation Requirements -Describes the employer responsibilities forestablishmeni and support of the card ....,n. Discrimination Worksheet- Please complete after enrollment antl return to ProcessWorks. el2nnoo~ SECTION IX: Certification of Workbook Completion I understand ProcessWorks, Inc. administers the benefit plan by federal guidelines and does not provide legal or accounting advice. I understand and agree that ProcessWorks, Inc. will place reliance on the accuracy of this information in order to fulfil their obligation as the Plan Service Provider I have reviewed/completed all sections of the workbook and certify accuracy of the information. Ir you have any questions, please contact a representative at ProcessWorks, Inc. Pat Tinley, Kerr County Judge Print Name of Authorized Employer Representative Signature of Authorized Employer Representative* Date !f sending electronically, typed in name will serve as "signature " Please make notes of any additional information that may affect the administration of your Benefit Plan: Employees can be reimbursed for expenses incurred in previous coverage period from future coverage period. New Hires are pro-rated on a monthly basis (i.e., HRA annual amount divided by 12 times the number of months remaining in plan year rounded to the next penny if not divisible by 12). Employees under the retiree division are also allowed to use HRA dollars to cover medical premiums Current panicipant data (HRA contribution, HRA claim balance) will be provided by Mutual of Omaha/SHPS. Mutual of Omaha Representative: Bruce Attarian Phone Number: i ProcessWorksiNC:° [tI L` TI~hl souYCP to npt sO UrO P.` P.O. Box 2490 Brookfield, WI 53008-2490 Phone: 262-789-8181 Fax: 262-879-0720 www. processworksinc. com 6/20,'2006 *IMPORTANT CHECKING ACCOUNT INFORMATION* Checking Account Arrangement with Debit Card Feature Employer uses a checking account owned by ProcessWorks, Inc. Attributes • Non-interest bearing account • Check stock provided by ProcessWorks free of charge. Checks bear name and address of ProcessWorks • Toll-free call center phone number for participant inquires provided on check • Checks signed using facsimile image of ProcessWorks's president • Employer required to offer direct deposit to employees • Stop-payment or check reissue fees are charged to employer Funding and reconciling • ProcessWorks a-mails check registers once per week showing all reimbursement activity • ProcessWorks EFT debits an account specified by the employer for amount shown on the e-mailed check register to cover the week's reimbursements • Check registers are also available at www.myprocessworks.com 24 hours a day, 7 days a week • ProcessWorks reconciles account Debit card /daily processing requirements .-. If the employer chooses to offer the debit card to employees or chooses daily processing, they will need to provide two week's average reimbursement amount upfront to ProcessWorks. This amount is referred to as "seed" money. Seed money is required since debit card transactions are occurring 24/7 and reimbursements are issued each business day. The seed money is used to fund the reimbursement amounts as they are occurring until the weekly EFT debit to employer's account. Employer provides the seed money only once prior to their first plan year with ProcessWorks. ProcessWorks provides a letter stating should the employer terminate the plan for arty reason the seed money not used for reimbursements will be returned to the employer. Items to send to ProcessWorks • Client Processing Requirements /Authorization to Debit • Debit Card Implementation Procedures /Employer Authorization Please note: Authorization to debit and debit card authorization must be returned to ProcessWorks no later than two (2) weeks prior to the effective day of the plan. Delays in receiving checking account information will result in delays in debit card issuance and reimbursement processing. ProcessWorks, Inc. P.O. Box 2490 Brookfield, WI 53008-2490 (262) 789-8181 (800) 236-8187 Fax: (262) 879-0720 www, myprocessworks. com "^ Client Processing Requirements !Authorization to Debit ProcessWorks, Inc. Owned Checking Account Complete this form if you will be using an account held by ProcessWorks for use in funding employee reimbursements. It is very important for you to read and understand the following items pertaining to account usage. 1) Flow of funds Employee reimbursements will be funded from anon-interest bearing checking account established at a bank of ProcessWorks' choice. ProcessWorks will a-mail a check register to the client once per week listing all reimbursements made. ProcessWorks will EFT debit the employer specified account as listed below for the total amount listed on the check register This will make ProcessWorks "whole" for the amounts funded from ProcessWorks' checking account during the week. Employer must ensure the total amount listed on the check register is available in employer account within one (1) banking day of receiving the check register. If adequate funds are not available, a NSF will result. A fee of $25.00 applies for all NSF's. This may be in addition any NSF fees your bank may charge. 2) Debit card and or daily processing "seed" money If the employer chooses to offer the debit card to employees or chooses daily processing, they will need to provide two week's average reimbursement amount up front to ProcessWorks. This amount is referred to as "seed" money Seed money is required since debit card transactions are occurring 24/7 and reimbursements are issued each business day The seed money is usetl to fund the reimbursement amounts as they are occurring until the weekly EFT debit to employer's account. Employer provides the seed money only once prior to their frst plan year with ProcessWorks. ProcessWorks provides a letter stating should the employer terminate the plan for any reason the seed money not used for reimbursements will be returned to the employer 3) Fees ,,,_.,. The employee is responsible for any stop payment and/or check reissue fees resulting from employee lost or stolen checks. This amount can be collected by the employer from the employee if the employer so chooses. With respect to employee direct deposit transactions, financial institutions typically require two business days to process direct deposit transactions. ProcessWorks releases direct deposits to the financial institutions according to your reimbursement schedule. It may take up to two business days after we release the direct deposit credits to show in the employees' accounts. For example, a direct deposit credit released to the financial institution on Friday may not reflect in the employee's account until Tuesday of the following week. This signed form must be returned to ProcessWorks prior to using ProcessWorks' checking account. Please complete the following information pertaining to the employer specified account from which ProcessWorks will issue EFT tlebits to cover employee reimbursements on a weekly basis. Bank Name: Bank TransiUABA #: Bank Account (DDA)#~ I understand and agree to the above-mentioned items and to allow ProcessWorks to create ACH debit and/or credit entries to the above-mentioned account. Client Name: Signature: Date: .+" ProcessWorks, Inc. P.O. Box 2490 Brooktreld, WI 53008-2490 ~~'OC{aSSi~I~"~SIN~" (262) 789-8181 (800) 236-8187 Fax: (262) 879-0720 rha ~tEhrx., ,.rcn r„ r, ,,r naor.: z- www.myprocessworks.com Debit Card tmplementation Procedures /Employer Authorization ProcessWorks Owned Checking Account The mbi Flex Convenience debit card service offered by ProcessWorks, Inc. allows participants to pay for qualified expenses directly from their reimbursement account using a MasterCard debit card. The convenience of the debit card leads to increased participation and overall dollars put through the plan which in turn can lead to greater employee satisfaction and company savings. The following steps are required to be completed by the employer in order to start the debit card service. Please review and initial each step as they are completed. 7). Review funding arrangements according to Client Processing Requlrements /Authorization to Debit form. ProcessWorks will fund the debit card transactions as they occur from an account owned by ProcessWorks. The banking arrangements are explained in the Client Processing Requirements /Authorization to Debit form and Direct Deposit Agreement. I have reviewed and agree to the terms listed in the above mentioned forms and agreements. Initial 2). The debit card service is not a paperless system. The Flex Convenience debit card service is not a paperless system for your employees. According to IRS Revenue Ruling 2003-43, all debit cards transactions require substantiation. Certain types of transactions can be electronically substantiated while others will require the participant to submit paper documentation verifying .r that the expense is eligible. Please see the Debit Card Substantiation Requirements form for further information. I understand the debit card service is not a paperless system. Initial 3). Understand the debit card claims review process ProcessWorks utilizes the debit card services and technology of its partner, mbi, in providing the Flex Convenience service to your employees. mbr's debit card technology pre-screens a!I charges and only approves those originating from approximately 26 provider location categories. In doing so, however, a small percentage of ineligible claims may end up being paid through your Plan. If in the case a cardholder charges an ineligible item at an approved location, ProcessWorks will send a series of a-mails and/or letters asking the participant to either pay the plan back for the ineligible transaction or to submit a substitute claim. If the employee chooses to disregard those notices, according to IRS Revenue Ruling 2003-43, the employer is required to deduct the ineligible transaction amount(s) from the employee's paycheck. If state payroll withholding laws prohibit involuntary deductions, the employer is required to contact the employee directly to recoup the amount of the ineligible transaction. It is important for the employer to contact ProcessWorks about any repayments made back to the Plan either by payroll deduction or repayment by the employee directly ProcessWorks will provide a listing of these ineligible transaction amounts at the end of each plan year. I understand the debit card claims review process, my employer's responsibility to collect funds from Inieiai employees who use the card for ineligible transactions after the series of a-mails and/or letters have been sent by ProcessWorks, and agree to not hold ProcessWorks liable for ineligible charges. 4). Collection of cards from terminated employees ProcessWorks permanently deactivates cards for terminated employees within a reasonable time period after receiving notice of the termination from the employer. mbi further requires employers to collect and destroy the employee's Flex Convenience card upon termination, much as they would collect keys to the office, security badges, and other corporate credit cards. The collection of cards from terminated employees eliminates any attempts to use the card for unauthorized or ineligible transactions. I understand the requirement to collect cards from terminated employees. Initial I understand the above-mentioned items and have completed the required implementation steps. Client Name: Kerr Signature: at in ev, County Ju qe Date: / / NOTE: Please allow a minimum of two weeks from when we receive this completed form and other required materials for your plan to be setup in the MasterCard system. New debit card plans are setup on a "first come - first serve" basis. Employees generally receive their debit cards within one month of receiving this setup information. Actual times may vary depending on the number of new plans be processed. ProcessWorks, Inc. P.O. Box 2490 Brookfield, WI 53008-2490 (262) 789-8181 (800) 236-8187 Fax: (262) 879-0720 www.myprocessworks. com Checking Account Options ProcessWorks, Inc. offers clients a choice among checking account options used to fund reimbursements. Most clients utilize ,,,., the Client Owned Checking Account option as it requires the least work and is more cost effective for the employer. The following details each of the two options. Client )caned Chedkin .Account... Employer sets up checking account with the bank of their choice. Attributes • The checking account can be part of employer's general assets account or a separate account • The account can be interest-bearing with the employer retaining interest accumulation • Streamlined, efficient processing with no need for weekly electronic fund Transfers or "seed" money • Employer has complete control of account • Check stock provided by ProcessWorks free of charge • Checks bear name and address of employer • Toll-free call center phone number for participant inquires provided on check Items to send to ProcessWorks • MICR Layout Form from bank or voided check • Check Signature Form provided by ProcessWorks • Client Processing Requirements /Authorization to Debit • If offering debit card to employees -Debit Card Implementation Procedures /Employer Authorization Fundinq and reconciling • ProcessWorks a-mails check registers once per week showing all reimbursement activity • Account can be funded each pay period with all deductions as they occur or funded only for actual reimbursements (sweep-account or controlled disbursement account) • Check registers are also available at www.myprocessworks.com 24 hours a day, 7 days a week • Employer reconciles account. ProcessWorks can provide reimbursement data file in Excel format. Reimbursement data fle can be used by employer io automate reconciliation process Debit card /daily claims processing requirements • If the employer chooses to offer the debit card or chooses daily claims processing, they will need to ensure money is always available for debit card transactions and daily check and direct deposit reimbursements. Please see Client Processing Requirements/Authorization to Debit and Debit Card Implementation Procedures/Employer Authorization ProcessWgrks Owned Checkin Account Employer uses a checking account owned by ProcessWorks. Attributes • Non-interest bearing account • Check stock provided by ProcessWorks free of charge Checks bear name and address of ProcessWorks • Toll-free call center phone number for participant inquires provided on check • Checks signed using facsimile image of ProcessWorks's president • Employer required to offer direct deposit to employees • Stop-payment or check reissue fees are charged to employer Items to send to ProcessWorks • Client Processing Requirements/Authorization to Debit • If offering debit card to employees -Debit Card Implementation Procedures /Employer Authorization Fundinq and reconciling • ProcessWorks e-mails check registers once per week showing all reimbursement activity • ProcessWorks EFT debits an account specified by the employer for amount shown on the e-mailed check register to cover the week's reimbursements • Check registers are also available at www.myprocessworks.com 24 hours a day, 7 days a week • ProcessWorks reconciles account Debit card /daily processing requirements If the employer chooses to offer the debit card to employees or chooses daily processing, they will need to provide iwo week's average reimbursement amount upfront to ProcessWorks. This amount is referred to as "seed" money. Seed money is required since debit card transactions are occurring 24/7 and reimbursements are issued each business day. The seed money is used to fund the reimbursement amounts as they are occurring until the weekly EFT debit to employer's account. Employer provides the seed money only once prior to their first plan year with ProcessWorks. ProcessWorks provides a letter stating should the agreement between the employer and ProcessWorks end for any reason the seed money not used for reimbursements will be returned to the em to er.