TO: Board of Supervisors
FROM: Christine Briceño, Director of Human Resources
REPORT BY: Joy Cadiz, Staff Services Manager
SUBJECT: Amendment No. 6 to Agreement No. 170137B with Inspira Financial Health, Inc.
RECOMMENDATION
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Approve and authorize Amendment No. 6 to Agreement No 170137B with Inspira Financial Health, Inc. (formerly PayFlex Systems USA, Inc.), extending the term of the agreement through June 30, 2025, with an automatic renewal option for an additional two fiscal years for employee flexible-spending benefit administration. (Fiscal Impact: $23,000 annual expense; Employee Benefits Fund, Budgeted, Discretionary)
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BACKGROUND
Inspira Financial Health, Inc. (formerly PayFlex Systems USA, Inc.), was awarded a contract to provide flexible spending account benefits to County employees, effective January 1, 2014. These benefits allow employees to withhold income pre-tax for eligible medical and dependent care expenses. In September of 2014, the program was expanded to include eligible commuter expenses (e.g., transit, parking, etc.) to comply with the Bay Area Commuter Benefits Program.
In 2019, the County evaluated other flexible spending providers and solicited feedback from employees regarding their experience with PayFlex. Employees were generally satisfied with PayFlex as a service provider.
Approval of this contract amendment extends the contract term through June 30, 2025, with an automatic renewal for two additional fiscal years. All other terms remain in full force and effect.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
Yes |
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Where is it budgeted? |
Employee Benefits-Flexible Spending 4400005 |
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Is it Mandatory or Discretionary? |
Mandatory |
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Is the general fund affected? |
No |
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Future fiscal impact: |
The administration fees for Flexible Spending Account benefits and Commuter Benefits are budgeted and offset by plan forfeitures. |
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Consequences if not approved: |
The County would not administer Flexible Spending Account benefits and Commuter Benefits for employees. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.