Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Rocio Kiryczun, Human Resources Director
Kim Pearson, Benefits Manager
Subject: Agreement with Benefit Coordinators Corporation for Retiree Benefits, Flexible Spending Accounts, Health Savings Account and COBRA Administration
RECOMMENDATION:
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Adopt a resolution authorizing:
A) A three-year agreement with Benefit Coordinators Corporation (BCC) for the provision of retiree benefits administration, flexible spending accounts administration, health savings account administration and COBRA administration for County employees, retirees, and their dependents, for the term of January 1, 2026 through December 31, 2028, in an amount not to exceed one million one hundred fifty-five thousand dollars ($1,155,000); and
B) A one-time option to extend the agreement for two years in an amount not to exceed $385,000 per year, for a total not-to-exceed amount of $1,925,000, at the sole discretion of the Director of Human Resources or designee.
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BACKGROUND:
Following a comprehensive Request for Proposals (RFP) process in 2015, the County selected and entered into an agreement with Benefit Coordinators Corporation (BCC) to administer retiree benefits, flexible spending accounts, and COBRA for County employees, retirees, and their dependents. This Board approved Resolution No. 073872, authorizing this agreement with BCC.
In April 2020, the County’s Human Resources Department and Benefits Labor Committee conducted a Request for Information (RFI) and unanimously selected the BCC to continue to administer these benefit programs. This Board approved Resolution No. 077709, waiving the RFP process and authorizing an agreement with BCC. The current contract with Benefit Coordinators Corporation will end on December 31, 2025.
DISCUSSION:
This year, the Benefits Labor Management Committee conducted a new Request for Proposals (RFP) process and solicited and evaluated proposals from three providers to ensure that the County is receiving competitive benefits and services available in the marketplace. On April 30, 2025, the Committee interviewed the two RFP finalists and ranked each of their proposals on the following criteria: comprehensive plan administration, cost effectiveness, enhanced participant experience, customization and flexibility, vendor expertise and track record, and data security and privacy. Based on these criteria, the committee unanimously agreed that BCC’s proposal most closely met the County’s needs and is recommending that it remain the provider for these services to the County.
The distinguishing strengths of BCC’s proposal were its account management model, which gives BCC the ability to effectively manage the unique complexities of the County’s retiree health system. BCC has proven to be an excellent administrator over the years it has served the County. In addition, BCC’s pricing will provide the County a minimal annual savings of $2,346 for all lines of business ($376,986 versus current $379,332), demonstrating a commitment to competitive pricing.
The agreement and resolution have been reviewed and approved by County Attorney as to form.
PERFORMANCE MEASURE:
|
Measure |
Target |
Revenue at Risk |
|
Carrier Data Build Accuracy |
>99% |
1% |
|
Rate Set Data Build Accuracy |
>99% |
1% |
|
Initial Billing Line of Coverage Accuracy |
>99% |
1% |
|
System Uptime: Amount of time system will be available |
>99% |
1% |
|
Phone/Email Tickets—24-Hour Response |
>99% |
1% |
FISCAL IMPACT:
The agreement’s total fiscal impact through December 31, 2028, is projected to be $1.155 million. There is no impact to net County cost associated with this agreement as costs are fully covered by the Benefits Trust Fund.