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Health Care Reimbursement - This is an account where <br />persons set aside money to pay for health care expenses <br />that are not normally covered by the insurance plan. <br />This could include co-pays, dental expenses and etc. <br />Dependent Care - This would allow the employee to defer <br />up to $5,000 to pay for the cost of dependent care as a <br />pre-tax item. <br />Each of the vendors offer the basic programs with some slight <br />variations. <br />Vendor Services - <br />Plan Development - In each case the vendors are taking <br />their standard plan and adopting it to the City's. As <br />noted in Attachment B this ranges from $500 to $2,700. <br />Legal Review - This is offered by one of the plans in <br />their plan development fee while others have had them <br />reviewed by prominent legal firms in the area, the City <br />could either rely on such legal representations or <br />choose to have their own legal review. A separate legal <br />review by Popham Haik is estimated to be about $400- <br />1,200. (Some of the plans have not been reviewed <br />locally as best as we can determine.) <br />Administration - Once the program is up and running it <br />can either be self administered by the City or it can be <br />administered through a third party. Quotations for <br />these expenses and the basis for these differ by type of <br />plan. It should be noted that the City would feel it <br />prudent to have a third party administrator as employees <br />may be reluctant to participate in a program if they <br />know their fellow employees are reviewing reimbursements <br />for particularly health related items. Additionally the <br />types of administration do differ, some handle the <br />accounting and transmit to the City for writing all the <br />checks. Others handle all the check writing directly <br />from their office. <br />RECOMMENDATION - It is recommended that the Council indicate any <br />questions or issues they would like to address and request <br />tabling until the September 10, 1990 Council meeting. <br />PROPOSED MOITON - Moved by _, seconded by _, <br />issue until Sej^ember 10, 1990. Ayes _, Nays <br />Council table the <br />cc: Department Heads