Review Agenda Item
Meeting Date: 6/17/2020 - 3:00 PM
Category: Consent Calendar
Type: Action
Subject: 11.27 BUSINESS: Sales and Service Agreement With Sanorbix, LLC for Affordable Care Act Management and Healthcare Reform Services (funded through the General Fund in the amount of $27,324.70)
Strategic Plan:
Enclosure
File Attachment:
Sanorbix 2020-2021.pdf
Summary: The Affordable Care Act (ACA) requires that employers offer medical benefits to all employees who have worked an average of 30 hours or more, each week, during the previous 12 months (look back period). Under the law, this includes substitutes, walk-on coaches, tutors, etc. The penalty for not offering a medical plan that covers the Minimum Essential Coverage to 95 percent of eligible employees is substantial. In addition, there are tax reporting requirements.

To comply with the multifaceted ACA, the District has been working with Sanorbix, for the last six years. Sanorbix has provided a system to track the eligibility of employees as well as the individual coding and reporting required by the Internal Revenue Service (IRS) called MyBenefitsChannel (MBC). These labor-intensive, Health Care Reform (HCR) services include completing and mailing the mandatory IRS Form 1095-C (Parts I, II, & III) and completing and filing the IRS Form 1094-C (Parts I, II, III & IV) for each employee.

This Agreement would allow the continued use of the Sanorbix system for tracking employee eligibility, individual IRS coding, and reporting, as well as the completion and mailing of the mandatory IRS forms for each employee.

The total estimated cost of this Agreement is $27,324.70, which will be adjusted to the actual number of employees and mailings.

The term of this Agreement shall be July 1, 2020 through June 30, 2021.
Funding: The cost for this item will be included in the 2020-2021 operating budget funded through the General Fund.
Recommendation: It is recommended that the Board of Trustees approve the Sales and Service Agreement with Sanorbix, LLC for Affordable Care Act Management and Healthcare Reform Services.
Approvals:
Recommended By:
Signed By:
Judy Miller - Director - Risk Management and Environmental Safety
Signed By:
Dawn Bray - Director - Purchasing
Signed By:
Candace Reines - Deputy Superintendent
Signed By:
Grant Bennett - Superintendent
Vote Results:

Original Motion
Member Edward Garcia, Jr. Moved, Member David Nelissen seconded to approve the Original motion 'It is recommended that the Board of Trustees approve the Sales and Service Agreement with Sanorbix, LLC for Affordable Care Act Management and Healthcare Reform Services.'. Upon a Roll-Call Vote being taken, the vote was: Aye: 5 Nay: 0.
The motion Carried 5 - 0
   
Dr. Jose Luis Araux     Yes
David Nelissen     Yes
Anthony T. Stafford, Sr.     Yes
Edward Garcia, Jr.     Yes
Dr. Randall Freeman     Yes