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First Amended Agreement for Paramedic /Medical <br />Billing and Collection Services <br />May 16, 2017 <br />Page 2 <br />In addition to administering the City's paramedic /medical billing and collection services <br />agreement, the Treasury Division is responsible for managing the City's Paramedic Subscription <br />Program. Effective July 1, 2017, over 7,300 City households are projected to be participating in <br />the program at an annual membership fee of $55.65 generating over $400,000 annually. As an <br />optional add -on, the Amended Agreement proposes that Wittman promote, administer, and <br />collect the City's Paramedic Subscription Program. Optional services to be performed by <br />Wittman and related costs are as follows: <br />An initial mass mailing to promote participation in the City's Paramedic Subscription <br />Program. The initial mass mailing list will total approximately 20,000 accounts. <br />• An annual renewal mailer to all registered Paramedic Subscription Program members. <br />• Generate and send a Paramedic Subscription Program membership mailer to all non - <br />subscription paramedic /medical service recipients on an ongoing basis. <br />• Collect all Paramedic Subscription Program applications and membership fees. <br />o The proposed cost for Wittman's Paramedic Subscription Program service will <br />be applied to fees collected as follows: <br />■ Initial and subsequent renewal mailings - $1.10 per account, plus prepaid <br />return envelope postage charge ($0.49) per mailer. <br />■ Administration of the City's subscription program: <br />• (Year 1)- 12% of subscription membership fees collected. <br />• (Year 2) - 11% of subscription membership fees collected. <br />In order to implement the optional Paramedic Subscription Program through Wittman, the <br />Centers for Medicare & Medicaid Services (CMS) require that a client jurisdiction maintain a <br />certain paramedic subscription fee threshold to meet Medicare Part B cost - sharing guidelines. <br />This would require the City to increase its proposed 2017 -18 fiscal year subscription fee from <br />$55.65 to $66.59 ($65.00 CMS threshold fee, plus $1.59 postage and handling charge). As <br />such, the proposed optional fee has been incorporated into the 2017 -18 Miscellaneous Fee <br />Resolution. <br />Participation in the optional City Paramedic Subscription proposal is elective on the part of the <br />City and can be exercised by the City Manager or his designee for the first agreement year, one <br />hundred - twenty (120) days prior to January 1, 2018, and thereafter one hundred -twenty (120) <br />days prior to July 1st for any subsequent agreement year. Based on the potential to more <br />efficiently promote and administer the City's Paramedic Subscription Program and thereby <br />expand participation by Santa Ana residents, staff recommends inclusion of this option. <br />25B -2 <br />