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Res 2025-182 approving a contract with Frontier Direct care, LLC to build and manage a heallthcare clinic to be used for city employees and who are covered through the City's Health Plan
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Res 2025-182 approving a contract with Frontier Direct care, LLC to build and manage a heallthcare clinic to be used for city employees and who are covered through the City's Health Plan
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9/30/2025 8:54:51 AM
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City Clerk - Document
Resolutions
City Clerk - Type
Approving
Number
2025-182
Date
9/16/2025
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Exhibit B <br /> Frontier Savings Guarantee <br /> Overview:Frontier will share in the known,existing risk within the Business's health plan membership.Frontier will put up to 100% <br /> of its fees at risk by guaranteeing that the Business's per-member per-month("PMPM")claims cost for the first year will not exceed <br /> a pre-agreed baseline. Similar to year 1,Frontier will offer a full guarantee of its fees for years 2 and 3 based on a pre-agreed baseline <br /> set at the beginning of each year. <br /> Because this agreement is being executed prior to finalizing the Year 1 claims projections,the baseline PMPM will be set through the <br /> methodology below. <br /> Savings Guarantee Framework(PMPM Terms): <br /> Metric Description <br /> Baseline PMPM Claims Spend To be finalized no later than 90 days post Effective Start Date,based on: <br /> (Year 1 Projection Without <br /> •Historical medical and Rx claims experience(prior 36 months) <br /> Frontier) <br /> •Plan design adjustments <br /> •Actuarial normalization for population risk/mix <br /> Actual PMPM Claims Spend <br /> Based on actual paid claims+Frontier's PMPM fee,measured over the full 12-month <br /> (Year 1, With Frontier Fees <br /> Included) period <br /> Savings Achieved(or Deficit) Baseline PMPM Claims Spend—Actual PMPM Claims Spend <br /> If Actual PMPM Claims Spend exceeds Baseline PMPM Claims Spend,Frontier will <br /> credit up to the total amount of fees charged, capped at Frontier's average PMPM rate <br /> Guarantee Amount multiplied by total member months. <br /> *Credits will be issued on monthly invoices over the remainder of the second year of the <br /> agreement. <br /> To allow for claims run-out,the Savings Guarantee calculation will be performed 4 <br /> Calculation Date months after the end of the first year(16 months from Contract Effective Start Date) <br /> Business Requirements. The Business agrees to the following: <br /> 1. Frontier approved plan design <br /> a. To be collaborated and agreed upon by the Business,Advisor/Broker, and Frontier <br /> b. Members must be incentivized to use Frontier via "Zero Dollar Tier" medical services through Frontier (Primary <br /> Care,Referred Services,Medications) <br /> c. Members are subject to traditional co-pays & deductibles when using Carrier Network, or otherwise self-directing <br /> care, without their Frontier provider's referral for treatment or FDP's negotiated savings prior to scheduling or <br /> receiving services <br /> 18 <br />
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