City of Nashua
Human Resources Department
229 Main Street - Nashua, NH 03060 (603) 589-3230
Fax (603) 589-3244
MEMORANDUM
To: Dan Kooken, Purchasing Manager
From: Larry Budreau, Human Resources Director
Subject: Part D Advisors — Service Agreement
Date: September 25, 2017
The Centers for Medicare & Medicaid Services (CMS), through the Retiree Drug Subsidy Program,
reimburse health plan sponsors for a portion of retiree prescription claims.
Part D Advisors (PDA), on a contingency fee basis, will audit the City’s original 2012 and 2013
subsidy awards and likely find that the City is eligible for additional reimbursement beyond the
$773,000 previously awarded.
This agreement is risk free as the City will only be invoiced if it receives additional subsidy from
CMS. That is, the City will retain 80% of the reimbursement and pay PDA 20%.
PDA is highly regarded and recommended by Workplace Benefit Solutions (WBS) / HUB
International, the City’s insurance broker / consultant. To their knowledge, the contingency fee of
20% is the lowest available. Another proposal received by the City was for 25%.
| have attached the Service Agreement and Business Associates Agreement. The Business
Associates Agreement concerns privacy rights as this is a matter governed by HIPPA, the federal
heaith providers’ privacy legislation. | have also attached PDA’s proposal.
| will attend the October 4, 2017 Finance Committee meeting.
Thank you,
larry
