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Home My WebLink AboutCOM 0393.000 2004-2006 ,Mtv or N Hurry Kim ~ William Takaba ~,I~Cg 1Im a Prrrctrv ~ - Nancy C. Crawford ~r':! 4 7'~ Uepulr Ovrwor~ Sri ul~Mii~ County of Hawaii Finance Department 2~ Aupuni SvccL Ruom I IS • Ildu.ll2~cau 96P_O ~8U81961-1:2;a • ha~(808) )GI-82x4 August 3, 2005 Stacy K. Higa. Chairman and Members of the Hawaii County Council Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 Re: Authorizing the Mayor to Enter into a Memorandum of Understanding The U.S. Department of Health and Human Services' Centers for Medicare & Medicaid Services (CMS) recently published the final regulations for Title I and Title II of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA). Title I contains the provisions governing the special retiree drug subsidies and other options that were designed to encourage employers and unions to continue providing high quality prescription drug coverage to their retirees. Sponsors of employer and union plans that offer a prescription drug benefit as good as, or better than, Medicare's defined standard prescription drug benefit under Part D will be able to apply for the drug subsidy. The State Director of Finance will be filing, on behalf of participating Counties, the application to the CMS to receive the Medicare Part D subsidy. The primary responsibility of the County will be to authorize the Hawaii Employer-Union Health Benefits Trust Fund (EUTF) to release any and all information necessary for the State to timely submit the application. Enclosed is a resolution authorizing the Mayor to enter into a memorandum of understanding (a draft copy is attached to this transmittal letter) with the State of Hawaii Department of Budget and Finance to enable the County to participate in the Retiree Drug Subsidy Program. In order for the State to meet the Retiree Drug Subsidy Program's application deadline of September 30, 2005, we kindly request a waiver from the Finance Committee and to have this resolution heard at the Council meeting scheduled for August 17, 2005. If there are any questions, please do not hesitate to call Nancy Crawford, Deputy Director of Finance. L--~ William Takaba Director of Finance APPROVED: _ . I) ~ ~ Comm. Mo.3 3 _ f~X/?5}' Ref. To: e~„e~ ~ Harry Kim Re.f. 'Jots ~~(i 10fl5 F Mayor Enc. Res.150-05~ Hawai i County is an Equal Opportunity Provider and Employer STACY K. HIGA t+u.q JAMES Y. ARAKAKI Char & Pmsding Otticer J!',~~ I:, PETE HOFFMANN FRED HOLSCHUH, DR. VIRGINIA ISBELL DONALD IKEDA ripe t'hmr BOB JACOBSON . y oG•w~+'~ ANGEL K. PILAGO GARY SAFARIK HAWAI `I COUNTY COUNCIL County of Hawaii Hawaii Caunry building ?5 Aupuni Slree( Hilo. Hawaii 96720 August 5, 2005 Stacy K. Higa, Chair Hawaii County Council 25 Aupuni Street Hilo. Hawaii 96720 RF: (Resolution No. 150-OS A Resolution transferring/appropriating an appropriation out and from the designated fund account(s) and crediting same to a designated fund account(s).) Pursuant to Section 2(g) of Rule 4 of the Rules of Procedure of the Council of the County of Hawaii, this written request is submitted with my approval that the above-referenced matter be waived from the Committee on Finance to the full Council for immediate action. In reviewing this matter, timely approval is crucial. It is therefore advantageous that approval is granted and the matter placed onto the next Council agenda for review. However, in the event this request is denied, for whatever reason, I understand the matter shall be referred to the Committee on Finance for placement on its future agenda. . , S~erely> "`""1 a,..-~ Virgini Isbell, Chair Committee on Finance Approved/Date/Waive to Council: Disapproved/Date/Refer to FC: Stacy K'Higa, Chair Stacy K. Higa, Chair Hawaii County Council Hawaii County Council Hawaii County /s An Equal OpportunJty Provider And Employer MEMORANUflM OF UNDERSTANDING This Memorandum of Understanding is entered into and is effective this day of August, 2005, by and between the State of Hawaii, by and through its Director of Finance (State), and the County of by its Mayor (County) . RECITALS The purpose of the MOU is to coordinate the application for the submission of an application to the Center for Medicare and Medicaid Services (CMS), on behalf of the State -of Hawaii and the County government .employers, to receive the Retiree Drug Subsidy (RDS), which is available to qualified plan sponsors. The State and County desire to cooperate and set forth certain terms and conditions under which they will coordinate the preparation and submission of the application. TERMS AND CONDITIONS RESPONSIBILITIES OF STATE 1. The Director of Finance_shall be responsible, with the cooperation of the County, for the preparation and submission of the application for Retiree Drug Subsidy to the Center for Medicare and Medicaid Services on or before September 30, 2005, in accordance with the published guidelines and instructions for submission. 2. The State shall coordinate, through the Hawaii- Employer Union Health Benefits Trust Fund (EUTF), the program administrator, for data preparation and submission required by CMS for application and receipt of subsidy payments. 3. The State will establish the necessary account(s) within the State Treasury for receipt of all subsidy from CMS and prepare appropriate disbursements to County. 4. The State will request the subsidies on a monthly basis from CMS based upon premiums paid for gross costs of qualifying retirees between the cost threshold and cost limit. Interim payments will be distributed to County based upon the number o£ Medicare eligible retirees and dependents aged 65 years and older as contained in the application submitted to CMS and approved as eligible for the subsidy payment by CMS. 5. A final reconciliation will be submitted to CMS within 15 months after the end of the plan year and adjustments will be incorporated into future subsidy payments. Allocation of future subsidy payments to County will reflect the reconciliation adjustment. 6. The State will comply with the terms and conditions for obtaining the RDS as outlined in Federal Regulations (42 C.F.R. ~ 423.880 et seq., (Subpart R) and other guidance issued by CMS, including conditions for submission of cost data for obtaining payment and record retention requirements. The State may enter in to an Memorandum of Understanding (MOU) with the EUTF to facilitate full compliance. 7. The State shall comply with the MOU dated governing privacy of individually identifiable health information and all other policies and procedures of the EUTF established to safeguard against the unauthorized use and disclosure of information related to the RDS. RESPONSIBILITIES OF COUNTY 1. County shall inform the EUTF of its authorization to release all required information necessary for the submission of the RDS application to the Department of Budget and Finance (B&F). 2. County shall comply with the terms and conditions for the obtaining of the RDS as outlined in Federal Regulations (42 C.F.R. ~ 423.880 et seq., (Subpart R) and other guidance issued by CMS, including conditions for submission of cost data for obtaining payment and record retention requirements. 3. County shall comply with the MOU dated governing privacy of individually identifiable health information and all other policies and procedures of the EUTF established to safeguard against the unauthorized use and disclosure of information related to the RDS. 4. County shall designate a contact person for coordination with the State in the preparation of the RDS application and all follow-up requirements. IN WITNESS THEREOF, the parties have executed this agreement. _ DATED: Honolulu, Hawaii, STATE OF HAWAII By its DIRECTOR OF FINANCE GEORGINA K. KAWAMURA DATED: , COUNTY OF By its MAYOR