6. Resolution 4969 - Tax Benefit Plan for City EmployeesREPORT TO:
City of Kalispell
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Honorable . av r and City Council
Marti Rishoff
Flexible Benefits Plan
BACKGROUND-6 The Citv has participate in a fle-x program qualified ureer Section I2-5 of
the I tel-nal Reve _- Code si to July 1- 2002 to wich-Iplod es may co trio t wags,'; that
pro -vide tax sav1ngis on insurance prernlumsa medical expenses and dependant care. The adoplion of
this resolution lj all f r at pa r the � pr ray a t t r
riployees, This Company offers a nv�w benefit of paperless claims rei l;arsera?em at a cost savings,
to the City,
The City- Council approve the resolation adopting a new Flexible
Ben --fits Plan for the Cft- of allspeff',
ALTERNATIVES. As suggested by C uncile
espectively surrattem
a
Marti is€;f
Personnel Speclalist
C;�Ja�nnes tl. at1l l�
Cite Mana2er
Report co pHe ece , er 15, 2004
RESOLUTION NO.4969
A RESOLUTION BY THE CITY OF KALISPELL AMENDING THE AGENT FOR THE
CITY'S FLEXIBLE BENEFITS PLAN.
WHEREAS, the City of Kalispell had previously adopted a cafeteria plan within the context of
Section 125 of the Internal Revenue Code for the benefit of the employer's eligible
employees; and
WHEREAS, the City now wishes to contract with Employee Benefit Resources, LLP, to be the
agent for the cafeteria plan.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL, MONTANA, AS FOLLOWS:
SECTION I. That the City hereby adopts Amendment No. One to the Flexible Benefits
Plan (consisting of the flexible benefits plan document, the Adoption
Agreement, and component benefit plans and Policies) for the City, effective
as of the date specified in the Adoption Agreement.
SECTION II. That any officer of the City may, without a further resolution, execute the
Adoption Agreement and any related documents or amendments which may
be necessary or appropriate to adopt the plan or maintain its compliance with
applicable federal, state and local law.
SECTION III. This Resolution shall become effective immediately following its passage by
the City Council and approval by the Mayor.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL THIS 20TH DAY OF DECEMBER, 2004.
Pamela B. Kennedy
Mayor
Attest:
Theresa White
City Clerk
AMENDMENT NUMBER ONE TO
CITY OF KALISPELL
FLEX113LE BENEFITS PLAN
AMENDMENT TO
CITY OF KALISPELL
FLEXIBLE BENEFITS PLAN
BY THIS AGREEMENT, City of Kalispell Flexible Benefits Plan (herein referred to as
the "Plan") is hereby amended as follows, effective as of January 1, 2005.
Article XII is added:
ARTICLE XII
ASSIGNMENT OF ADMINISTRATIVE FUNCTIONS
12.1 ASSIGNMENT OF ADMINISTRATIVE FUNCTIONS.
Certain administrative functions related to the operation of the Plan are assigned
to the Employer by the Plan. The Employer may enter into a service contract with an
agent of the Employer ("Agent") to perform such administrative functions.
12.2 ADMINISTRATIVE FUNCTIONS.
(a) The Plan and any health insurance issuer or business associate
servicing Plan will disclose Plan Participants' individually identifiable health
information, including Participants' Protected Health Information to Employer or
an Agent of the Employer only to permit Employer or the Agent to carry out the
following plan administration functions for Plan:
(1) "Automated Claims Processing", including claims
processing, adjudication, and reimbursement. "Claims"
includes only that payment information that indicates an
individual has incurred an out-of-pocket expense such as,
but not limited to, a deductible or co -payment or other
individually identifiable health information used for testing
the automatic processing system.
Plan Participants may elect in writing to participate in
Automated Claims Processing. Under Automated Claims
Processing, Claims for employees enrolled in the
Employer's group health plan offered by BlueCross
BlueShield of Montana ("BCBSMT") will automatically be
submitted by BCBSMT to Employee Benefit Resources,
LLP ("EBR"), the Employer's Agent. EBR will submit
such Claims against the Participant's flexible spending
account administered by EBR.
(ii) Enrollment of Participants and new annual flexible
spending account elections.
(iii) Posting of payroll withholdings relating to the Participant's
flexible spending accounts.
Any disclosure to and use of Plan Participants' Protected Health
Information by Employer or the Agent will be subject to and consistent with the
provisions of the specifications and requirements of the implementing rules of the
Health Insurance Portability and Accountability Act of 1996 ("HIPAA') set forth
in 45 CFR Parts 164, Subparts A and E. Plan shall not disclose Plan Participants'
Protected Health .Information to the Employer or the Employer's Agent unless or
until the Plan has received certification by the Employer that the Plan Documents
have been amended to provide for the privacy of the Plan Participants' Protected
Health Information and that the Employer agrees to the privacy protections
provided by such Amendment.
12.3 RESTRICTIONS ON EMPLOYER AND AGENTS OF THE EMPLOYER —
USE AND DISCLOSURE OF PROTECTED HEALTH INFORMATION.
(a) The Employer and its Agents will neither use nor further disclose
Plan Participants' individually identifiable health information, except as permitted
or required by the Plan Document, as amended by this Article, or as required by
law.
(b) The Employer and its Agents will ensure that any agent, including
any subcontractor, to which it provides Plan Participants' individually identifiable
health information agrees to the restrictions, conditions, and security measures of
the Plan Document, as amended by this Article, with respect to Plan Participants'
individually identifiable health information.
(c) Neither Employer nor its Agent will use Plan Participants'
Protected Health Information in any employment -related actions or decisions or in
connection with any other benefit or employee benefit plan of the Employer.
(d) Employer will, and will cause its Agent to, report to the Plan any
use or disclosure of Plan. Participants' Protected Health Information that is
inconsistent with the uses or disclosures provided by this Amendment of which
the Employer or Agent becomes aware.
(e) Employer or its Agent will provide access to Protected Health
Information maintained in a Designated Record Set to the Individual who is the
subject of the Protected Health Information in accordance with 45 CFR 164.524.
(f) Employer or its Agent will make Protected Health Information
available for amendment and will incorporate any amendments to Protected
Health Information in accordance with 45 CFR 164.526.
(g) Employer or its Agent will make available such information as is
necessary to satisfy the accounting requirements of 45 CFR 164.528.
(h) Employer or its Agent will make internal practices, books, and
records relating to Plan Participants' Protected Health Information available to the
Secretary of the U.S. Health and Human Services for purposes of determining
compliance with 45 CFR Part 164, Subparts A and E.
(i) Employer or its Agent will return or destroy all Plan Participants'
Protected Health Information if feasible when such Protected Health Information
is no longer needed. If return or destruction of Plan Participants' Protected Health
Information is not feasible, then Employer and its Agent will limit further uses
and disclosures of such Protected Health Information to those purposes which
render the return or destruction infeasible.
12.4 ADEQUATE SEPARATION BETWEEN EMPLOYER AND PLAN.
(a) The following employees or classes of employees or other
workforce members under the control of Employer or Employer's Agent may be
given access to Plan Participants' Protected Health Information received from
Plan or a health insurance issuer or business associate servicing Plan:
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(ii) Consulting Staff of the Agent or its related entities
(iii) Information Technology Staff of the Agent or its related
entities
(iv) Employees whose job duties include administrative
functions of the Plan, including the performance of duties
relating to payment, or other matters pertaining to the Plan
performed in the ordinary course of business.
(b) The employees, classes of employees or other workforce members
identified in Paragraph 12.4(a)(i) through 12.4(a)(iii), above will have access to
Plan Participants' individually identifiable health information, including Protected
Health Information, only to perform the plan administration functions that
Employer provides for Plan, as specified in Paragraph 12.2(a), above.
(c) Any employees, classes of employees or other workforce members
that violate the terms of this Amendment will be subject to discipline in
accordance with the Employer's policies pertaining to discipline and sanctioning
of members of the workforce.
IN WITNESS WHEREOF, this Amendment has been executed thi� day of
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Bar:
-employer
City of Kalispell
Flexible Benefits Plan