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Home My Public Portal AboutBlue Cross & Blue Shield of FL Accounting & Rentention Agreement1 BLUE CROSS AND BLUE SHIELD OF FLORIDA, INC. HEALTH OPTIONS, INC. ACCOUNTING AND RETENTION AGREEMENT (Proshare) This is an Agreement (hereinafter "Agreement") between Blue Cross Blue Shield of Florida, Inc. d/b/a Florida Blue and Health Options, Inc., (hereinafter jointly referred to as "Florida Blue"), located at 4800 Deerwood Campus Parkway, Jacksonville, Florida 32246 and CITY OF CRESTVIEW, (hereinafter "the Group") located at 198 NORTH WILSON STREET, CRESTVIEW, FL 32536. WHEREAS, the Group requests Florida Blue to provide a health maintenance organization (hereinafter "HMO") and a Point -of -Service insurance program, (hereinafter jointly referred to as GHP "the Group Health Plan") to its employees and their covered dependents (hereinafter "Group Member(s); and; WHEREAS, Health Options, Inc., has agreed to provide the HMO part of the GHP, and Florida Blue has agreed to provide the insurance part of the GHP; and WHEREAS, each of the parties to this Agreement seeks to set forth in writing the terms and conditions of their Agreement. NOW THEREFORE, for good and valuable consideration, the parties agree to these terms and conditions: I. TERM The initial term of this Agreement shall begin on October 1, 2014, (the effective date) and shall end on September 30, 2017 (the termination date), unless otherwise terminated or renewed in accordance with the provisions of this Agreement. During the term of this Agreement, the Group agrees to: a) maintain enrollment that does not decline to one hundred (100), or fewer contracts for two consecutive months or three nonconsecutive months during a single contract period, and b) meet or exceed the minimum participation guidelines set forth in the True Group Application. In the event the Group is unable to maintain adequate enrollment, this Agreement may be terminated and no settlement will be prepared and the Group will not be eligible for this funding arrangement in the future. 11. BENEFIT PLAN Florida Blue will pay benefits to all eligible Group Members in accordance with the provisions of this Agreement and the GHP. i III. PREMIUM PAYMENTS The Premium Rates, Prepayment Fees, and Supplemental Charges for the GHP are payable in advance to Florida Blue at the address set forth above. The premiums for the program are set forth in Exhibit A. IV. SETTLEMENT ACCOUNTING Within one hundred twenty (120) days after the end of the initial term of the Agreement and any renewal term, Florida Blue shall prepare and furnish to the Group a Settlement Accounting of their operations of that term. This Settlement Accounting shall include operations under all coverages of the Agreement and shall set forth the following: (a) Earned Premium (b) Incurred Claims less claims in excess of the pooling point (c) Capitation Charges, if applicable (d) Pooling Charges (not included in administrative charges) (e) Administrative Charges as set forth on Exhibit A If Earned Premium is greater than the sum of Incurred Claims less claims in excess of the pooling point, Capitation Charges, Pooling Charges and Administrative Charges, a portion of this excess will be retumed to the Group as determined by the following: (a) After completion of the Oct 1, 2014 - Sept 30, 2015 policy year - 50% of the excess (b) After completion of the Oct 1, 2015 - Sept 30, 2016 policy year - 50% of the excess (c) After completion of the Oct 1, 2016 - Sept 30, 2017 policy year - 50% of the excess If the Group cancels prior to the completion and acceptance of the Settlement Accounting, no excess premium will be retumed for the prior policy year or the current policy year. Excess premium for each policy will be determined solely from the results of that year. Prior gains or deficits will not be carried forward to subsequent years. If Eamed Premium is less than the sum of Incurred Claims less claims in excess of the pooling point, Capitation Charges, Pooling Charges and Administrative Charges, the deficit will be retained by Florida Blue. V. TERMINATION This Agreement may be terminated at any anniversary of the effective date by either party by giving the other party at least 45 days prior written notice of such termination. 2 VI. MODIFICATION OF RATES Rates for the term of this Agreement will remain in effect, as set forth in Exhibit A, provided there is no material change to the Benefit Contracts, the enrollment, or any other risk factor, as determined by Florida Blue. Thereafter, all rates set forth in Exhibit A of this Agreement are subject to change by Florida Blue at any time following at least forty-five (45) days prior written notice to the Group. The revised rates, administrative charge and pooling charge will be set forth and presented to the Group on a revised Exhibit A. All other provisions of this Agreement shall remain in effect without modification. VII. LATE PAYMENT/CHARGE In the event the Group fails to make any payment due under this Agreement, in full, prior to the applicable due date, such payment may be made to Florida Blue up to ten (10) days after such due date without a late payment charge. Payments received by Florida Blue eleven (11) to thirty-one (31) days after such due date are subject to a late payment charge. The Group shall pay any late payment charge to Florida Blue immediately upon receipt of the notice of such charge. In the event any charge under this Agreement is not paid, in full, by the Group to Florida Blue within thirty-one (31) days after the applicable due date, this Agreement will automatically terminate as of the applicable due date. In the event this Agreement terminates retrospectively for any reason, the Group shall be liable, in addition to all other liabilities set forth in this Agreement, for any claim(s) paid by Florida Blue which were incurred after the termination date. All payments due for changes during the Agreement period must be received by Florida Blue in order for the Group to share in any excess. VIII. RENEWAL This Agreement shall automatically renew/extend for additional one-year period(s), after the termination date, at the rates then in effect (the renewal rates), unless either party notifies the other party of its intent not to extend this Agreement at least forty-five (45) days prior to the applicable Anniversary Date. The renewal rates will be set forth and presented to the Group on a revised Exhibit A. IX. INCONSISTENCIES If the provisions of this Agreement are, in any way, inconsistent with the provisions of the Benefit Contract(s), then the provisions of this Agreement shall prevail, and the other provisions shall be deemed modified but only to the extent necessary to implement the intent of the parties expressed herein. 3 X. SURVIVAL The rights and obligations of the parties, as set forth herein, shall survive the termination of this Agreement to the extent necessary to effectuate the intent of the parties as expressed herein. XI. WAIVER OF BREACH The failure by either party, at any time, to enforce or to require the strict adherence to any provision of this Agreement shall not be deemed to be a waiver of such provision or any other provision of this Agreement. XII. GOVERNING LAW This Agreement and the rights of the parties hereunder, shall be construed according to the laws of the State of Florida. XIII. SEVERABILITY In the event any provision of this Agreement is deemed to be invalid or unenforceable, all other provisions shall remain in full force and effect. XIV. AMENDMENT This Agreement may be amended at any time upon mutual, written agreement of both parties, except that Florida Blue may make changes necessary to comply with State and Federal laws upon 60 days notice to the Group. XV. ENTIRE AGREEMENT This Agreement, including its Exhibits, the application(s) for coverage, and the Benefit Contract(s) constitute the entire Agreement between the Group and Florida Blue. Any prior agreements, promises, or representations, either oral or written, relating to the subject matter of this Agreement, and not expressly set forth in this Agreement, are of no force or effect. XVI. NOTICES Any notice, required or permitted under this Agreement, shall be deemed given if hand delivered or if mailed by United States mail, or an overnight mail service (e.g., Federal Express), postage prepaid, to the applicable address as set forth above or to such other address as a party may designate, in writing, to the other party. Such notice shall be deemed effective as of the date so deposited or delivered. 4 XVII. SEPARATE CORPORATIONS Florida Blue and Health Options, Inc., are separate corporations. Nothing in this Agreement shall be construed, for any purpose whatsoever, to make either liable for the actions of the other. XVIII. PROVIDER NETWORKS Florida Blue Health Care Provider Networks are subject to change and may be modified at any time during the term of this Agreement without notice to or consent of the Group or any Group Member. 5 BLUE CROSS AND BLUE SHIELD OF FLORIDA, INC. D/B/A FLORIDA BLUE & HEALTH OPTIONS, INC. • By: Name: I Jambi J. Condit By: Name: Title: Vice President and Chief Title: Underwriting Officer Date: a /7/YDate: a 6 City of Crestview d*falt.bi &J 19,0 I Clcrik s td. -11 N EXHIBIT A TO THE ANNUAL ACCOUNTING AND RETENTION AGREEMENT WITH CITY OF CRESTVIEW GROUP NO. 59530 A. Premium rates effective: October 1, 2014 BOP 03559 $10/$30/$50 Fbc BOP 05770 $10/$30/$50 Fbc HMO 059 $10/$30/$50 Fbc Single $572.82 $543,24 $543.28 Spouse $1,271.67 $1,205.99 $1,206.09 Child(ren) $1,042.53 $988.69 $988,77 Family $1,758.57 $1,667.74 $1,667.87 B. Administrative charges effective: October 1, 2014 23.15% of earned premium C. Pooling effective: October 1, 2014 1. Pooling Level: $115,000 2. Pooling Charges: 7.93% of earned premium 7