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Health Care Reimbursement Process Change <br />In addition to the membership rate increase proposal, the department is recommending a change to <br />the way health insurance reimbursements are processed. Currently, the Membership Clerk <br />processes transactions to member's accounts and in some cases, actually "banks" money for our <br />members. <br />The new process would put the reimbursement process into the hands of a third party vendor <br />(VANCO). Under the new process, the Membership Clerk will only handle charging our monthly <br />memberships. All health insurance reimbursements will be handled directly through VANCO. <br />Basically, members will receive a deposit from VANCO for their reimbursement into a checking or <br />savings account, and NBCC would withdraw their full monthly membership fees. <br />Benefits <br />-VANCO is PCI compliant at a Level 1, meaning they have meet industry standards to process, store <br />or transmit payment information in a secure environment. <br />-This is an automated process, no human keyed information. <br />-The city would no longer be "banking" credits/money for the annual members. <br />-Reimbursements would be deposited the 25'" of the month, instead of when they are processed by <br />staff. <br />-Reward is seen directly by the member. <br />-Saves time for Membership Clerk — no longer keying in information twice, spending time pulling <br />reports and highlighting eligible members, no longer tracking spreadsheets, won't be issuing refunds. <br />-Saves time for finance department because they will no longer be looking for the electronic deposits, <br />or balancing spreadsheets. <br />-Members who cancel will still receive their last reimbursement based on timing of processing visits <br />and reporting to VANCO. <br />Who this affects <br />Currently there are 459 members enrolled in the reimbursement program. Of those members, an <br />average of 212 reimbursements is being paid out per month. In terms of annual members, there are <br />96 who are enrolled, but of that, 72 are active, meaning, 72 refunds would be processed. <br />Budget Implications <br />There would be an additional expense of approximately $250 a year. The time spent for the <br />Membership Clerk and Finance to track reimbursements on multiple spreadsheets would pay for this <br />increase in less than two months. <br />Timing <br />If this proposal is accepted NBCC would communicate to our current health insurance eligible <br />members of the change via a letter. This letter would include the form they need to complete in order <br />to deposit their reimbursement into a checking or savings account. Members would be asked to <br />return the information by December 1 in order to switch to the new process by 2016. <br />• Page 3 <br />