The Texas Government Code Section 175.003(c) allows municipalities to substitute a Medicare supplement for retirees attaining Medicare eligibility. Beginning January 1, 2018, retirees and dependent spouses enrolled in the group health plan, who reach age 65, and become Medicare-eligible, are enrolled in a Health Reimbursement Arrangement (HRA) account.
ConnectYourCare, LLC (CYC) provides the Health Reimbursement Arrangement (HRA) administration services in Contract 13583. The City pays a monthly stipend of $150 per month per Medicare-eligible retiree, and $150 per month per Medicare-eligible dependent. Administration costs are $3.00 per account, per month, which is approximately $29,000 per year.
On June 18, 2021, CYC provided written notice that they would not renew the HRA Administrative Agreement as of January 1, 2022.
The City of Lubbock contracted with CYC, to provide administration services for similar health care savings accounts for active employees, flexible spending accounts, and dependent care reimbursement accounts. The CYC contract was effective January 1, 2018, for a 5-year period ending December 31, 2022. The amendment to the CYC contract adds administration of the HRA for post-65 retirees, at the rate of $3.20 per account, per month, for an approximate annual cost of $29,780.
The amendment is for a 1-year period. A Request For Proposal for Medical, Dental, Pharmacy Benefit Management, Vision, COBRA, and Flexible Spending Account Administration is scheduled for distribution in May 2022. |
