HomeMy WebLinkAboutMINUTES - 08121986 - 1.44 ro BOARD OF SUPERVISORS
Ad ---- -
FROM: Mark R. Finucane, Health Services erector Contra
Costa
DATE: July 29 , 1986 Co Irti
SUBJECT: Approval of Standard Rates for Contra Costa Health �+� ���
Plan Contracts & Authorization to Establish Composite Rates.
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
I Recommended Action:
Adopt the attached monthly rates for membership in the Contra
Costa Health Plan by commercial employee groups, and private
non-group Medicare and individual subscribers , such rates to be
effective on contract renewal dates.
Authorize the Executive Director, Contra Costa Health Plan, to
. establish group-specific composite rates which are based on the
number of single, dual, and family employees in a group and satisfy
the revenue requirements established by the Standard Public and
Private Group rates.
II Financial Impact
Assuming. no change in enrollment in the affected groups , premium
revenue will increase by $45, 220. 16 annually.
III Reasons for Recommendations/Background:
The Contra Costa Health Plan revises its rates annually based on its
experience with cost, membership mix, and family size, and by
considering the anticipated impact of competition. This year
contracted actuarial services have improved the accuracy of the
experience data used in this process .
The recommended rates average 4% above the 1985-86 rates and no single
rate in the schedule increased more than 10 . 1% . This rate of
increase is consistent with the Bay Area Medical Care C.P.I . , which is
currently increasing•' atan annual rate of 6 . 7% .
This year The Plan has abandoned its policy of developing different
rates for public and private commercial groups. This was done both
because it was actuarially unwise to continue it, and to bring our
premium structure in this regard in line with industry practice. We
have also realigned the individual and commercial rate structure to
extend our reach in this growing market niche.
CONTINUED ON ATTACHMENT: YES SIGNATURE;
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOAR COMMITTEE
APPROVE OTHER
SIGNATURE S :
ACTION OF BOARD ON 21 C3 APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
1 HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS (ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES. AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. /
cc: County Adrl.inistrator ATTESTED _ /916
Health services Director PHIL BATCH LOR, CLERK OF THE BOARD OF
Auditor--Controller SUPERVISORS AND COUNTY ADMINISTRATOR
CCI:P
M382/7-83 BY ,DEPUTY
�4
TO: Board of Supervisors
FROM: Mark Finucane, Health Services Director
DATE: July 29, 1986
SUBJECT: Approval of Standard Rates for Contra Costa Health Plan Contracts
and Authorization to Establish Composite Rates.
PAGE: 2
III continued -
The Board in approving these rates also authorizes the
Health Plan Executive Director to establish composite
rates for those employers who request them. This is a
common practice in the industry and a composite rate has
been provided by The Plan to the Richmond School District
for each of the last four years.
The new rates will result in higher revenue and an
'improved competitive position for The Plan. For these
reasons we believe .the proposed rates serve the County
and The Plan equally well.
IV Consequences of Negative Action:
The Plan should communicate the new rate structure to its
contracted employer groups as soon as possible. The
revenue increase will not be realized if Board action is
negative.
X
. continued on attachment Yes
C 0 N T R A C 0 S T A H E A L T H P L A N
PROPOSED 19 86 - 8 7 RATES
GROUP CONTRACTS
TWO TIER M E D I CA R'E TWO TIER
Single $77. 28 Single . $61.78
Family $196 . 52 Family $181. 02 (1 Medicare eligible)
Family $165 . 52 (2 Medicare eligibles)
THREE TIER M E D I C A R E THREE TIER
Single $77. 28 Single $61. 78
Dual $154. 56 Dual $139. 06 (1 Medicare eligible)
Family $226 . 50 Dual $123. 56 (2 Medicare eligibles)
----------------------------------------
PRIVATE INDIVIDUAL CONTRACTS
Family $211. 00 (1 Medicare eligible)
Family $195 . 50 (2 Medicare eligibles)
Single $77. 28
Dual $154 . 56
Family $226 .50
SENIORHEALTH
High Option $66. 35
Low Option $41.00
RTH:smp
8/4/86
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