To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract #77-788 with Soda Health, Inc.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County (i) Master Services Agreement and (ii) Statement of Work (County Contract #77-788) with Soda Health, Inc, a corporation, in an amount not to exceed $2,100,000, to provide a hosted software solution for a Medicare and Medicaid supplemental benefits program for the distribution and management of restricted debit cards to Contra Costa Health Plan (CCHP) beneficiaries for the period from November 4, 2025, through November 3, 2028, and for successive one (1) year terms thereafter until terminated.
FISCAL IMPACT:
This Contract will result in contractual service expenditures of up to $2,100,000 over a 3-year period and will be funded 100% by Costa Health Plan Enterprise Fund II.
BACKGROUND:
This Contract meets the needs of CCHP by providing its hosted software solution for CCHP’s Medicare and Medicaid Services supplemental benefits program for the for the distribution and management of restricted debit cards to CCHP Dual Eligible Special Needs Plan (D-SNP) members. The Department of Health Care Services issued a revision to HCFA-AT-80-38 (BPP) on May 22, 1980, referencing 42 CFR 432.10(a) Standards of Personnel Administration, which CCHP must comply with, including a contractual requirement to establish and maintain methods for personnel administration and in conformity with standards prescribed by the US Civil Service Commission in accordance with Section 208 of the Intergovernmental Personnel Act of 1970 and the regulations on Administration of the Standards for a Merit System of Personnel Administration. CCHP must maintain a benefits distribution program that safeguards consumer protection and ensures seamless member onboarding. This Contract will enable the distribution of availability funds to CCHP D-SNP Members in a secure and controlled manner, covering the costs of certain supplemental benefit expenses, redeeming rewards earned through healthy activities, and purchasing items from an over-the-counter drug catalog.
This Contract supports CCHP’s requirement to administer D-SNP Member supplemental benefits securely and in compliance with a Health Insurance Portability and Accountability Act of 1996 (HIPAA). Per Administrative Bulletin 600.3 the Department has posted a continuous Request for Qualifications and maintains a current qualified list of vendors at all times. A summary of service contract deliverables, including measurable outcomes required of the contractor to be monitored by the department in compliance with Section III (B)(7) of the Purchasing Policy (AB600.3), includes the implementation of the program, card management, benefits enablement and call center services, and County’s use of the software platform under the license grant, and access to maintenance and support. This Contract was approved by Health Services Personnel to ensure there is no conflict with labor relations.
Under this new Contract #77-788, the parties will execute a Master Service Agreement (MSA) (including mutual indemnification and the County's HIPAA Business Associate Addendum (BAA)) and Statement of Work for Contractor’s Soda Health Technology solution and services. Under the MSA, each party's liability is limited to the amount paid by County to Soda Health, Inc., under the Contract over the preceding twelve (12) month period to the event giving rise to the liability, except for claims arising out of a breach of Intellectual Property Rights, BAA and Indemnification obligations. Under the MSA, Soda’s liability for a breach of Protected Health Information is limited to $10,000,000.
Under the Soda Master Agreement, the County is obligated to indemnify and defend Soda Health, Inc. against third party claims arising from County’s breach of the Agreement or county’s negligence or willful misconduct in performing this Agreement. The initial term of this Contract begins on the effective date and will continue for two (2) years thereafter and automatically renew for an additional one (1) year terms(s) unless terminated as provided under the Contract.
Approval of this new Contract #77-788 allows the Contractor to provide services through November 3, 2028.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract is not approved, CCHP will not maintain compliance for Medi-Cal and Medicare Advantage Members. Failure to implement this system will result in CCHP being completely unable to participate in D-SNP Medicare Advance resulting in County’s loss of state and federal funding.