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1st Amendment 02/15/2017AMENDMENT TO EMPLOYEE BENEFIT CONSULTING SERVICES AGREEMENT BETWEEN MONROE COUNTY, FLORIDA AND GALLAGHER BENEFIT SERVICES This Amendment ("Amendment") is entered into by and between the Board of County Commissioners of Monroe County, Florida; 1100 Simonton Street, Room 2-268; Key West, Florida 33040 ("County" or "Employer") and Gallagher Benefit Services ("GBS"), Inc., 2255 Glades Road, Suite 400E, Boca Raton, FL 33431 ("Contractor") and is to be effective as of February 15 , 2017. WHEREAS, on September 15, 2010, the Employer and GBS entered into an agreement (hereinafter "Agreement") to provide consulting services on an as needed basis in the areas of Group Health Insurance; and WHEREAS, on April 17, 2013, the agreement was renewed for one (1) year and subsequently renewed at the County's option for two (2) additional consecutive one year terms at no change in compensation; and WHEREAS, on October 1, 2016, the Agreement was extended for one (1) additional year, through September 30, 2017; and WHEREAS, the employer intends to issue a total of four (4) Requests for Proposals (RFPs) during 2017 and 2018, for a pharmacy benefits management (PBM) program, fully insured health insurance program, self -insured health insurance program, and a stop loss program for the self -insured health insurance program; and WHEREAS, if new vendors are chosen in response to the RFPs, the vendors would be implemented during the fourth quarter of 2017 for the PBM, fully insured health insurance, and stop loss programs, and during the fourth quarter of calendar year 2018 for the self -insured health insurance program; and WHEREAS, the County therefore desires to extend the Agreement with the Contractor through December 30, 2018 in order to ensure that the Contractor is available to work on the RFPs and implementation; and WHEREAS, in addition to the Scope of Services listed in Exhibit A to the original Agreement, the Contractor has offered to make available an additional Health Care Analytics ("HCA") service available to the County for use in evaluating proposals for the PBM proposal; and WHEREAS, the HCA service consists of a comprehensive, proprietary PBM pricing model that quantitatively evaluates and adjusts all proposals for pharmacy benefits, by (1) collecting current PBM usage from the County's existing PBM plan; (2) preparing a financial analysis of the proposals; (3) preparing an analysis of the non -financial (i.e., qualitative) responses to the proposals; (4) translating the unit costs of drugs in the proposals into projected plan costs by multiplying proposed drug unit prices by actual County volume; and (5) evaluating the proposer's proposed use of generic drugs, both in terms of plan savings but also to determine acceptable substitutions; and WHEREAS, the Contractor has proposed to use this additional HCA service available at an additional cost of twenty-five thousand dollars ($25,000.00) for any proposals received in response to the PBM RFP; and WHEREAS, the County believes that the additional HCA service provides real value in evaluating the PBM proposals for the PBM program (where claims run approximately $3.7 million per year) and wishes to purchase the service. NOW Therefore, in consideration of mutual covenants and condition set forth below, the parties agree as follows: 1. The Agreement is extended through December 31, 2018. 2. The compensation to the Contractor throughout the term of this Agreement will include a one- time payment of twenty-five thousand dollars ($25,000.00) to cover the cost of the HCA service for the PBM RFP, in addition to base compensation in the amount of one hundred fifty thousand dollars ($150,000.00) per year. 3. In all other respects the terms and conditions of the original Agreement remain in full force and effect. i WHEREOF, the parties hereto have executed this Renewal Agreement this day of 7. Deputy Clerk Corporate Seal: Attest: By: Board of County Commissioners MADOK, Clerk of Monroe County )4"Y- oe~ 5 Mayor/Chairman Name and Title � J CD (3 W *� r L ts. Gallagher Benefit Services, Inc. By: Signature Print Name: Jeffrey P. Angello Title: Area President MOiFG = OUi A�._iORNEY APP OVE'D AS ' 0 O M: cR� N -WA t_. fiALL ASSISTANT rC)i� !T`� ATTORNEY 2 CLIENT COVERAGE ACKNOWLEDGMENT AND COMPENSATION DISCLOSURE STATEMENT FOR Monroe County Board of County Commissioners This form documents that Gallagher Benefit Services, Inc. (Gallagher) will apply its professional judgment to access those insurance companies it believes are best suited to insure the Client's risks. The final decision to choose any insurance company has been made by the Client in its sole and absolute discretion. The Client understands and agrees that Gallagher does not take risk, and that Gallagher does not guarantee the financial solvency or security of any insurance company. The Client is responsible for immediate payment of premiums for all insurance placed by Gallagher on Client's behalf, If any premium amounts are not paid in full when due, the applicable insurance company for the Client's risks may cancel any applicable policies in accordance with the terms of such policies. The following is the disclosure of fees and/or commissions to be paid to Gallagher as a result of its Broker of Record relationship to Client's Group Health and Welfare Plan and any relationships, or agreements Gallagher has with any insurance companies selected by Client as noted above. Gallagher, as Broker of Record, will receive the following initial and renewal sale commissions expressed as percentage of gross premium payments, or fees as agreed upon by Client: Monroe County Board of County Commissioners Commissions / Line of Coverage Insurance Company Effective Supplemental Direct Fees' Date Coin ensation2 Medical Florida Blue 10/01/2017 NA/NA $150,000 Consulting fees per contract amendment Dental Delta Dental 10/01/2017 NA/NA See Above Vision VSP 10/01/2017 NA/NA See Above Life & ADD Minnesota Life 10/01/2017 NA/NA See Above Rx Cuveout Envision Rx 10/01/2017 NA/NA See Above PBM - RFP Project — Multiple Vendors 10/01/2017 NA/NA $25,000 It should also be noted that: • Gallagher is not an affiliate of the insurer whose contract is recommended. This means the insurer whose contract is recommended does not directly or indirectly have the power to exercise a controlling influence over the management or policies of Gallagher. Gallagher's ability to recommend other insurance contracts is not limited by an agreement with the insurance company. • Gallagher is effecting the transaction for the Plan(s) in the ordinary course of Gallagher business. The transaction set forth is at least as favorable to the Plan(s) as an arm's length transaction with an unrelated party. ' Commissions include all commissions/fees paid to Gallagher that are attributable to a contract or policy between a plan and an insurance company, or insurance service. This includes indirect fees that are paid to Gallagher paid by a third party, and includes, among other things, the payment of `finders' fees" or other fees to Gallagher for a transaction or service involving the plan. : Gallagher companies may receive supplemental compensation referred to in a variety of terms and definitions, such as contingent commissions, additional commissions and supplemental commission. ' Direct Fees include compensation to Gallagher paid for directly by the plan sponsor/Client. Gallagher Client Coverage Acknowledgment 05302014 02017 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. I AJG.COM • Gallagher is not a trustee of the Plan(s) and is neither the Plan Administrator of the Plan(s), a fiduciary of the Plan(s), nor an employer which has employees in the Plan(s). Gallagher shall not exercise discretionary authority or control with respect to plan management, the disposition of plan assets or plan administration. For Employers and Plan Sponsors Subject to ERISA: This Disclosure Statement is being given to the Client (1) to make sure Client knows about Gallagher's and Gallagher affiliates' income before purchasing the insurance product and (2) for plans subject to ERISA, to comply with the disclosure, acknowledgment and approval requirement of Prohibited Transaction Class Exemption No. 84-244, which protects both Client and Gallagher'. Disclosure must be made to an independent plan fiduciary for the ERISA Plan(s), and Client acknowledges and confirms that this is a reasonable transaction in the best interest of participants in its ERISA Plan(s). For more information on Gallagher's compensation arrangements, please visit www.ajg.com/compensation. In the event a Client wishes to register a formal complaint regarding compensation Gallagher receives, please send an email to Compensation_ Complaints@ajg.com or send a letter to: AVC Compliance Officer, c/o Internal Audit Department, Arthur J. Gallagher & Co., Two Pierce Place, Itasca, IL 60143. Thank you for your business and continued confidence in the services Gallagher provides to you and your employees. We sincerely appreciate the opportunity to serve Monroe County Board of County Commissioners. Please let us know if you have any questions regarding this information or would like more detail. GALLAGHER BENEFIT SERVICES, IN By: - Name: Jeffrey P. Angello Title: Area President Date: Accepted by: Monroe County Board of County Commissioners By: Z. Name: George Neugent MONRGE COtJAs TATTORNEY MTitle: L�QNTH'A � lFDate: Mayor L. HALL ,RNEY ASSISTANT, ate, n d Date— 0 ��� �.`� %.�Ir�I�ATTEST KEVIN MA60K CIERK ° Which allows an exemption from a prohibited transaction under Section 408(a) e s c Income Security Act of 1974 (ERISA). 3 In making these disclosures, no position is taken, nor is one to be inferred, regardin ' a plan subject to ERISA to purchase such insurance. Gallagher Client Coverage Acknowledgment 05302014 0 2017 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J GALLAGHER & CO I AJG COM A`C)RO® CERTIFICATE OF LIABILITY INSURANCE 4/DATE(M /DDIYYYY) /2017 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsements . PRODUCER Arthur J. Gallagher Risk Management Services, Inc. 300 S. Riverside Plaza, Suite 1900 Chicago IL 60606 CONTACT NAME: Direct All Inquiries to Email PHONE FAX - No), EMAIL , Chi_Certificates@ajg.com INSURERS AFFORDING COVERAGE NAIC # INSURERA:Arch Insurance Company 11150 INSURED ARTHJGA113 INSURER B : Gallagher Benefit Services, Inc. - Boca Raton 2255 Glades Road, Suite 400E INSURER C : Boca Raton, FL 33431 INSURER D : INSURER E : INSURER F : COVFRAnFA rFRTIIFICATF IVIItuRCR• 15FiR173g51 001ncrnu wwm�m. THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE ADDL INSD WVD POLICY NUMBER POLICY EFF MMIDDIYYYY POLICY EXP MM/DD/YYYY LIMITS A X COMMERCIAL GENERAL LIABILITY CLAIMS -MADE 1xx1 OCCUR Y 41GPP4938409 10/1/2016 10/1/2017 EACH OCCURRENCE $1,000,000 DAMAGE TO RENTED PREMISES Ea occurrence $1,000,000 MED EXP (Any one person) $10,000 PERSONAL 8 ADV INJURY $1,000,000 AGGREGATE LIMIT APPLIES PER: PRO - POLICY JECT I LOC GENERAL AGGREGATE $3,000,000 GEN'L PRODUCTS -COMP/OP AGG $3,000,000 $ OTHER: A p AUTOMOBILE LIABILITY ANY AUTO 41CAB4939009 (MA) 41CAB4938309(AIDS) 10/1/2016 10/1/2016 10/1/2017 10/1/2017 Ea accidentCOMBINED -9 INGLE LIMIT $3,000,000 BODILYINJURY(Perperson) $ Ix ALL OWNED SCHEDULED AUTOS AUTOS HIRED AUTOS X NON -OWNED AUTOS BODILY INJURY Per accident ( ) $ PROPERTY DAMAGE Per accident $ UMBRELLA LIAB OCCUR EACH OCCURRENCE $ AGGREGATE $ EXCESS LIAB CLAIMS -MADE DED RETENTION $ $ A ANDEMPLOYERS'L COMPENSATION YIN ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? ❑N N I A 41WC14938109(ADS) 44WC10501909 (NY, TX, CA) 10/1/2016 10/1/2016 10/1/2017 10/1/2017 PER X STATUTE OTH- ER E.L. EACH ACCIDENT $1,000,000 E.L. DISEASE - EA EMPLOYE $1,000,000 (Mandatory In NH) H yes, describe under E.L. DISEASE -POLICY LIMIT $1,000,000 DESCRIPTION OF OPERATIONS below DESCRIPTION OF OPERATIONS / LOCATIONS I VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space Is r uirec(•yj�( Vt Y RI GE(YIEN'( General Liability: BY lr�/ General Aggregate Per Location Subject to $10 Mil Policy aggregate. WAI�- Cc�� iccr— The Monroe Board of County Commissioners is shown as an additional insured solely with respect to General Liability coverage per form 00 GL0596 00 04 10 as required by written contract. _ —1 r u rv— r � %,ANt r-LLA 1 RAV The Monroe Board of County Commissioners 1100 Simonton Street Suite 2-268 Key West FL 33040 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE ©1988-2014 ACORD CORPORATION. All rights reserved. ACORD 25 (2014/01) The ACORD name and logo are registered marks of ACORD THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BLANKET ADDITIONAL INSURED This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE FORM LIQOUR LIABILITY FORM PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE FORM SECTION II — WHO IS AN INSURED is amended to include as an additional insured the person or organization who is required under a written contract with you to be included as an insured under this policy, but only with respect to liability arising out of your operations or premises owned by or rented to you. All other terms and conditions of this policy remain unchanged. Endorsement Number: Policy Number:41GPP4938409 Named Insured: ARTHUR J GALLAGHER & COMPANY This endorsement is effective on the inception date of this Policy unless otherwise stated herein: Endorsement Effective Date: 10/1/2016 00 GL0596 00 04 10 Page 1 of 1 '`,W O CERTIFICATE OF LIABILITY INSURANCE DATE(MM/DD/YYYY) 4/6/2017 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsements . PRODUCER Arthur J. Gallagher Risk Management Services, Inc. 300 S. Riverside Plaza, Suite 1900 Chicago IL 60606 CONTANAME: Direct All Inquiries to Email PHONE FAX NQ1, E-MAIL chi_certificates@ajg.com INSURERS AFFORDING COVERAGE NAIC # INSURER A:Lexington Insurance Company 19437 INSURED ARTHJGA113 Arthur J. Gallagher & Co. and its Subsidiaries The Gallagher Centre INSURER B :XL Specialty Insurance Company 37885 INSURER C : 2850 West Golf Road INSURER D : INSURER E : Rolling Meadows IL 60008 INSURER F : COVERAGES CERTIFICATE NIIMRFR• 537224320 oovrcrnu ur lam- - 11 11uAluv_M: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE INSD WVD POLICY NUMBER EFF MM/DDYNYYY MM/ DYE LIMITS TCOMERCIAL GENERAL LIABILITY CLAIMS -MADE OCCUR EACH OCCURRENCE $ DAMAGE TO RENTED PREMISES Ea occurrence) ccurrence $ MED EXP (Any one person) $ PERSONAL & ADV INJURY $ AGGREGATE LIMIT APPLIES PER: POLICY ❑ PRO ❑ JECT LOC GENERAL AGGREGATE $ GEN'L PRODUCTS - COMP/OPAGG $ OTHER: AUTOMOBILE LIABILITY COMBIN=6LE Ea accident $ ANY AUTO BODILY INJURY (Per person) $ ALL OWNED SCHEDULED AUTOS AUTOS NON-OHIRED AUTOS AUTOS BODILY INJURY (Per accident) $ PROPERTY PROPERTY DAMAGE Per accident $ UMBRELLA LIAB OCCUR EACH OCCURRENCE $ EXCESS LIAB CLAIMS -MADE AGGREGATE $ DED RETENTION$ $ WORKERS COMPENSATION AND EMPLOYERS' LIABILITY Y / N ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICERIMEMBER EXCLUDED? ❑ N / A PER OTH- STATUTE I ER E.L. EACH ACCIDENT $ E.L. DISEASE - EA EMPLOYE $ (Mandatory in NH) If yes, describe under E.L. DISEASE - POLICY LIMIT $ DESCRIPTION OF OPERATIONS below A B Primary E&O Liability Excess E&O Liability N N N N 017788170 ELU14606816 9/1/2016 9/1/2016 9/1/2017 9/1/2017 Per Claim/Areate Per Claim/Aggregate $3 000 000 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 101. Additional Remarks Schedule, may be attached if more space is required) PPR K EMENTDA WAIVER N/A �'t Cf ' The Monroe Board of County Commissioners 1100 Simonton Street Suite 2-268 Key West, FL 33040 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. FD REPRESENTATIVE 91933-2014 ACORD CORPORATION. All rights reserved. ACORD 25 (2014/01) The ACORD name and logo are registered marks of ACORD