To: Board of Supervisors
From: Ann Elliott, Human Resources Director
Report Title: Contract Extension with Navia Benefit Solutions, Inc. to provide County employees Flexible Spending Account (FSA) and COBRA benefit programs allowing pre-tax dollar contributions
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Human Resources Director, or designee, to execute a contract amendment with Navia Benefits Solutions, Inc. to increase the payment limit by $100,000 to a new payment limit of $400,000 to administer COBRA and Flexible Spending Account programs, and extend the term through December 31st, 2026.
FISCAL IMPACT:
This contract is funded by 100% Participant Fees. The County administrative costs for the continuation of health coverage under COBRA and Flexible Spending Accounts - Health Care Spending Account (HCSA) and Dependent Care Assistance Program (DCAP) - are funded through plan forfeitures with no cost to the County.
The $2.75 per-employee-per month fee paid to the vendor for the Commuter benefit will be paid by the participating employees for the months that they place an order. There is a $100 monthly minimum plan administration fee. Any shortage will be funded by forfeitures to meet this minimum monthly administration fee.
BACKGROUND:
Navia Benefit Solutions, Inc. (Navia) provides administrative services for employee benefit programs. Under the contract, Navia handles the administrative services related to the continuation of health coverage under COBRA and the County’s Flexible Spending Accounts, Health Care Spending Account (HCSA), the Dependent Care Assistance Program (DCAP), and the Commuter Benefit Program, which allows employees to contribute pre-tax dollars to cover qualified transportation expenses such as train, bus, ferry or parking costs.
The current contract was approved by the Board on December 13, 2022, and became effective January 1, 2023, with a payment limit of $300,000. The contract contains a limitation on the contractor’s liability and modified indemnification language. This amendment is the first of two successive one-year renewal options, extending the term through December 31, 2026, and increasing the payment limit by $100,000.
The contract will contain terms concerning the responsibility of the parties to protect certain information as set forth in the California Consumer Privacy Act and other provisions regarding confidentiality.
CONSEQUENCE OF NEGATIVE ACTION:
If this extension is not approved, the County will be unable to offer the increased functionality of Navia’s administrative services for the Flexible Spending Accounts (HCSA & DCAP), Commuter Benefit programs, and the continuation of health coverage under COBRA as authorized by MOUs and Management Resolution, and the continuation of health coverage under COBRA.