DEPARTMENT OF MANAGEMENT SERVICES



University Conference Call Minutes

| | |

|Date |April 9, 2009 |

|Time |10:00 a.m. to 11:30 a.m. |

|Location |Tallahassee, Florida |

|Facilitator |Verla Lawson |

|Note Taker |Verla Lawson |

|Attendees |Florida Atlantic University, Florida State University, Florida A& M University, University of|

| |Florida, University of Central Florida, University of West Florida, University of South |

| |Florida, University of North Florida, New College, Florida International University, Jimmy |

| |Cox, Jackie Ward, Mike Waller, Michelle Robleto, David DiSalvo, Brian Andrew, Tim Vause, |

| |Shelby Jefferson, James West, Keith Young and Verla Lawson |

| | |

OPENING AND INTRODUCTIONS

Verla Lawson opened the meeting and introduced the Department of Management Services (DMS) team and the Convergys team.

Key Performance Measures

David DiSalvo begin with an overview of the key performance measures and how DMS and Convergys developed the format which has been provided to each University, displayed on a chart with a written explanation for each measure. He emphasized that all data that has been distributed to date was a draft for each university to review and provide feedback. David emphasized to all that the purpose of the Chart was not to single out any one university but it is a tool for all of us to enhance customer service and improve processes.

Eliminating and minimizing errors will alleviate as many potential problems as possible and enhance everyone’s performance. There have been some issues that our target of 10 errors is to low for the larger universities and that the less populated universities would somewhat have an advantage. There were those who thought DMS should take another look at the way this data is being analyzed before it’s documented and reported to all. The response to this in the overview was that our measures have been reviewed repeatedly and following several e-mails we reviewed our process again and based on our data analysis, the original 10 error target is not an unrealistic measurable value.

James West was asked to elaborate further as to how we determine what constitutes an error. The data collected identifies errors with the following:

• Fatal Interface Errors

• Interface Errors

• HR Action Requests

When processing faculty and staff, the University payroll should align with the People First (PF) system. If the two payrolls are not equal, then errors occur. Example: If a University enrolls an employee in your system and not the PF system, this causes an error and it impacts the employee. The employee believes they are enrolled in coverage because premium is taken from their checks but the enrollment was not submitted to PF on the file.

Errors are measures during the Interface process and HR Action requests as to whether an employee looses coverage, loss of eligibility, underpayment of premium reinstatements or refund denials. Any one of the aforementioned processes will error out and be captured on this report. If any process negatively impacts and employee’s enrollment or premiums it is an error and will be captured.

UF asked DMS & Convergys to take another look at the process because of the way PF processes termination dates and employees who are reemployed. UF sent examples to Convergys IT but have not received a response. DMS asked that UF provide those examples to Verla Lawson and we would conduct a thorough review. If this is a recurring issue, DMS definitely wants to get to the root of the problem.

FSU also mentioned that rehires kick out as errors each time and many don’t feel this should be considered when tabulating errors for the month.

DMS will discuss these issues with Convergys and provide a standard process if this is a common systems issue. We will inform all Universities of any updates.

Question: Who is eligible for the subsidy?

Answer: The new COBRA subsidy is available for individuals whose employer group health plan coverage would otherwise end due to an involuntary job loss occurring between September 1, 2008 and December 31, 2009. In addition, the person cannot be eligible for other group health plans or Medicare coverage and must pay at least 35% of the required premium and the employer will pay up to 65%. The employer will recoup the subsidized contribution by way of payroll taxes.

There are five codes in the People First system we will use in order to recognize the involuntary separations and they will be provided to all Universities after the meeting. Each University was very concerned as to who would be eligible for the subsidy and Michelle confirmed that the initial COBRA notice must be forwarded to all employees who separated September 1, 2008 to the present. After the initial contact and going forward, we will be able to clearly identify those terminating employees who may or may not be eligible to receive the subsidy.

Questions: How long will the subsidy last?

Answer: According to Federal Law, the subsidy will last up to nine months.

Question: When will notices be mailed to terminated employees?

Answer: Currently it is the Division of State Group Insurances’ immediate responsibility is to get the notices out to all terminated employees as quickly as possible. Please note, some of those employees who terminated and do not qualify for the subsidy will receive a letter. Anyone who had a COBRA qualifying event as of September 1, 2008 will receive a notice.

Question: If a terminated employee never signed up for COBRA coverage or they signed up paid a few months of premium and then stopped payment, are they eligible to participate?

Answer: This is the second election period. According to the law involuntarily terminated employees, termed September 1, 2008 through February 16, 2009, will have a second chance to enroll into COBRA and may receive the subsidy, if they meet the qualifications.

Questions: Do they receive a new COBRA eligibility time period?

Answer: No, these employees will not receive a new eligibility time period. Their original COBRA eligibility date does not change. Example: If an employee became eligible for COBRA in December of 2008, their 18 months begin on the date of eligibility.

The real challenge for the Department will be dependents. If a terminated employee chooses individual COBRA coverage and they experience a qualifying event, the only dependent that would be eligible to receive the stimulus would be a new born or an adoption. If this individual adds a spouse as a result of a qualifying event, the spouse is not eligible for the subsidy.

If a terminated participant adds a spouse during open enrollment, the spouse is not eligible to receive the subsidy. The spouse would have to have been covered on the plan the day before the employee terminated; therefore, this employee would only receive the individual subsidy rate.

The majority of universities were concerned with eligibility when someone leaves employment how would they know who is eligible to participate.

Jimmy Cox spoke from the system side and mentioned that Convergys will look at their BNI voluntary and involuntary terminations and send an error report. He stressed to all Universities that this report will be in real time and that you must work the reports immediately upon receipt.

Michelle Robleto expressed to everyone that the US Department of Labor (DOL) was the agency responsible for determining who is eligible and who isn’t. If a university questions a terminated employee, they can bring it to our attention to discuss on a case by case basis. Ultimately this employee can appeal to the US Department of Health and Human Services and they may receive an approval to participate outside of our determination. Employees who were “forced” into retirement are considered involuntary separations, but must be coded in the system to be eligible for the subsidy. We will follow the PAR. If the PAR matches the codes identified for involuntary separation, we will approve that employee for the subsidy. DMS will provide each university with the codes to follow. Update: DMS e-mailed the codes to all Universities on 4-10-09.

Question: Are those professors who the university does not renew their contract eligible for the subsidy?

Answer: It depends how their records are submitted on the interface file. DMS will also discuss this issue further and provide universities with an update if the final decision is different than what’s recorded on the interface file.

Question: If an employee works for your university during a particular quarter and transfers near the end of the quarter, who takes the credit for the subsidy?

Answer: The initial employing university would apply for the subsidy during the quarter that person worked for their facility.

Questions: How will the Universities know which former employees they will pay the 65% subsidy to?

Answer: The state will provide each University with a Collection Summary Report. This can be done on the mid-payroll collection. DMS will provide each university with a payroll calendar with the each month this Federal Law will be in effect.

DMS in conjunction with Convergys felt that this payment should not be associated with the BNI 123, but rather the mid-payroll collection.

Questions: Who will track eligibility beginning and end?

Answer: Convergys will track eligibility based on enrollment and coverage period.

Questions: If a participant become ineligible and does not report new coverage what happens?

Answer: Employees who become eligible for other group coverage must submit to us in writing that they have other coverage. If they fail to report other coverage, they will have to deal with the Internal Revenue Service if audited. IRS would pursue the individual NOT the University.

DSGI and Convergys will provide you with the names of all eligible participants that you should file on your 941. It will require some manual tracking but it’s all apart of implementing this law. We have to make sure everyone is following the process.

Questions: Will Universities have access to see terminated employees?

Answer: Currently the answer is no. DMS is negotiating with Convergys for everyone to have this data available for review.

Questions: When will the first spreadsheet be distributed?

Answer: The distribution date has not yet been determined.

Question: What is the effective of coverage?

Answer: Coverage for employees in the September 1, 2008 through February 16, 2009 group is retroactive to March 1, 2009. Because the state pays premium a month in advance we know there will be refunds to process. All other participants will follow current COBRA eligibility periods and coverage start dates.

Question: How will the subsidy eligible participants be provided to each University?

Answer: Each spreadsheet will be place in E-Case. Convergys cannot e-mail secure data.

Questions: If an employee elected COBRA in December of 2008 and their coverage terminated in February are they eligible for a second chance, and if so, how many month of the subsidy will they receive?

Answer: A terminated employee is eligible for 18 months of COBRA. If that employee terminated his coverage in February, he would not receive a new 18 months eligibility period. If this employee requested to enroll during the subsidy time period, he may receive all 9 months contribution (if he meets all eligibility requirements) because his original COBRA coverage would not end until June 2010. Remember, the law says that we would have to retroactively give a March 1, 2009 effective date provided the participant pays premium.

Please note: Once a former employee pays their 35% the law clearly states that we must provide them coverage. The state will provide a monthly spreadsheet to each University with the name and other vital information required.

Questions: How can an employer be assured that each invoice is correct?

Answer: Unfortunately, you can’t. This is part of the risk you take as an employer. IRS will NOT hold the employer liable. The former employee will be held accountable and the Federal Government is putting a process in place to implement these type issues as they arise.

Michelle urged everyone to validate their monthly statements. We don’t know how large the volume will be at this time. We can only speculate. The perception is that the percentage will be relative low. 35% of a $1,000 is still a lot to pay if you are unemployed. We will inform you of those employees who are eligible for the COBRA subsidy. Please make sure you are using the correct codes on the BNI file. If there is a challenge on eligibility, the US Department of Health and Human Services will determine if a person is eligible - not the state.

DSGI will begin mailing letters the week of April 13, 2009. Update: DSGI begin mailing as scheduled during the week of April 13, 2009. The overview was ended inviting all university personnel who have questions after DSGI mailed out all of the paperwork to please send their questions to Verla Lawson and they would receive a response as quickly as possible.

Over/Under Report Overview:

Jimmy Cox provided a refresher overview of the over/under report release and ask the Universities if they were able to access their reports and if not to please provide us with examples of their problems.

Several Universities mentioned that they had some issues with the over/under report. Jimmy mentioned that we were aware of those issues and asked them to run a new report and the issue should be cleared up, however, if they continued to experience problems, please send an example via e-mail to Verla.

Emergency Reinstatement e-mail box (EER) & PF Client Services e-mail box:

Following a brief overview of what each e-mail box was created to accomplish, David DiSalvo explained that we have been meeting to discuss processes and procedures with Convergys and our recommendation is to combine these two e-mail boxes. The main purpose is to try and simplify the process. DMS will notify all universities once the final decision has been made and there will be a grace period of holding both boxes open until users get use to forwarding information to just one e-mail address.

Shelby Jefferson reassured the universities that Convergys will continue to monitor the new box as they did for emergency reinstatements. Their response time will not change. If you have a check from an employee and the agency contribution has not arrived at Convergys, the reinstatement request will continue to be honored just as they do currently.

Monthly University Error Reports:

David DiSalvo explained that we are currently renegotiating with Convergys on renewal items and one of the main focuses is performance and accountability. Our goal and objective is to make sure our employees do not loose coverage as a result of a data transfer failure. The state has asked Convergys to develop a spreadsheet of errors for the state university system which have a major impact on employees on a monthly basis. Examples include: providing incorrect data on the BNI file, HR Action forms, loading incorrect premiums, etc. By creating this spreadsheet to distribute to each university, we are hoping this would aid you in double checking to make sure the data transmitted to Convergys is as accurate as possible.

Within the next six to eight weeks, DMS will send each university a chart displaying this information. A draft will be sent first explaining how we measured the data over a two month period.

Agency Error Process

Verla Lawson announced to the Universities that DMS in conjunction with Convergys are reviewing the current agency error process. Our task is to redefine parameters and explain what the State considers to be an agency error. Everyone will receive a copy of the new guidelines as soon as they have been completed.

E-Case Web-ex:

Tommy Wagner informed the Universities that he and Convergys will provide a refresher course in E-Case on April, 13, 14 & 15. All university staff with access to e-case was invited to participate in the three day sessions. Verla distributed the URL sign-in information, as well as the conference call in number. Update: All data was distributed and training was available as originally stated during the meeting. There were sessions each afternoon on April 13, 14 & 15. University participation was very well.

CLOSING

DMS closed the meeting by thanking everyone for participating on the call and asked them to please continue to let us know when there are problems

TAKEAWAYS

• DSGI will distribute Management Advisories with information relating to the COBRA Stimulus Package. Update: The Management Advisories explaining the new COBRA stimulus package were distributed April 9. 2009.

• DSGI will provide Universities a copy of each letter former employees will receive. Update: DSGI provided letters to all Universities as a part of the April 9, 2009 distribution.

• There are approximately five codes in the people first system we will use in order to recognize the involuntary separations and they will be provided to all Universities after the meeting. Update: All involuntary separations coded in the people first system were provided to the Universities April 10, 2009.

• DMS will provide each university with the codes to follow: Update: DMS e-mailed the codes to all Universities on 4-10-09.

• DSGI will begin mailing letters the week of April 13, 2009. Update: DSGI begin mailing as scheduled during the week of April 13, 2009.

• All University Staff with access to E-Case was invited to participate in a refresher course April 13, 14 & 15. Update: Verla distributed to each University the URL sign in and the conference call in number on April 10, 2009 as well as forwarding updates on April 13, 2009. Sessions took place each day in the afternoon of April, 13, 14 & 15.

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