56-19 Authorizing Retension of Third Party Administrator - 2019.pdf

56-19 February 5, 2019 RESOLUTION WHEREAS, the Township of West Orange (the “Township”) has a need to acquire services for its self-insured health benefits program, including administration and claim processing through a non-fair and open process pursuant to the provisions of P.L. 2004, c.19 (N.J.S.A. 19:44A-20.5 et seq.); and WHEREAS, the procurement of insurance services, including health benefit insurance, is an exception to public bidding requirements pursuant to N.J.S.A. 40A:11-5(1)-(m), the procurement of which shall comply with N.J.S.A. 40A:11-5(1)(a)(ii); and WHEREAS, the Township’s Health Insurance Broker of Record issued a Request for Proposals to parties interested in providing health insurance services to the Township; and WHEREAS, the Township received proposals for Third Party Administrator Fees on a self-insured basis, as follows: Estimated Annual Fees IAA $628,723 UMR/United Health Care $502,253 Meritain $500,832 WHEREAS, the Broker of Record, Mayor, Business Administrator, and Township have reviewed the proposals received, and recommend that a one (1) year contract with an option to renew for (2) two years be awarded to Meritain Health, 300 Corporate Parkway, Amherst, New York, 14226, to provide administrative services as a Third Party Administrator (“TPA”) for the Township’s Limited Self Insured Health Benefit Program consistent with the proposal submitted by Meritain Health, annexed hereto as Exhibit “A;” and WHEREAS, pursuant to N.J.S.A. 40A:11-15, contracts for the provision of insurance, including the purchase of insurance coverages, insurance consulting or administrative services, claims administration services, and risk management may be for a term of three (3) years; and

WHEREAS, the term of this contract shall be from April 1, 2019 through December 31, 2019 with an option to renew for an additional two (2) year period. NOW, BE IT HEREBY RESOLVED BY THE TOWNSHIP COUNCIL OF THE TOWNSHIP OF WEST ORANGE that the Township be and is hereby authorized to retain Meritain Health as its TPA for the Township’s self-insured health benefits program; and it is further RESOLVED that the Mayor is hereby authorized to execute any documents or agreements with Meritain Health consistent with the costs and terms set forth in the proposal annexed hereto as Exhibit “A;” and it is further RESOLVED, that the Municipal Clerk be and is hereby authorized to attest to the Mayor’s signature on any document or contract required; and it is further RESOLVED, that the Business Administrator shall immediately, and in no event later than February 10, 2019 send a written notice of cancellation to the Township’s current TPA, UMR/United Health Care cancelling said services as of March 31, 2019, in favor of Meritain whose services shall commence April 1, 2019. Karen J. Carnevale, R.M.C. Jerry Guarino Municipal Clerk Council President Adopted: February 5, 2019 I hereby certify funds are available from: Account No. JOHN O. GROSS, CFO 4850-5354-6118, v. 1