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HomeMy WebLinkAboutMINUTES - 09251990 - 1.56 � " TO- BOARD OF SUPERVISORS 1-056 .FROM: Harry D. Cisterman, Director of Personnel C=tra By: Eileen K. Bitten, Asst. Director of Personnel Costa DATE: September 13 , 1990 C(y �/ SUBJECT: Health Related Increases and Contract Renewals "`"� �`� SPECIFIC REQUEST(S) OR RECCMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS 1. IT IS ORDERED that the County Administrator/Director of Personnel be authorized to sign the necessary documents renewing the Contra Costa Health Plan contract through September 30, 1991 . 2. IT IS ORDERED that the County Administrator/Director of Personnel be authorized to sign the necessary documents renewing the Kaiser Health Plan contract through September 30, 1991. 3 . IT IS ORDERED that the County Administrator/Director of Personnel be authorized to sign the necessary documents renewing the Safeguard Dental contract through September 30, 1992. 4 . Approve an 8% rate increase for the. County' s self-funded dental (Delta) plan effective. October 1, 1990. 5. Approve an 18% rate increase for the 1st Choice Health Plan effective October 1, 1990. 6. IT IS ORDERED that the County Administrator/Director of Personnel be authorized to negotiate a contract with Safeguard Health Enterprises, Inc. ,for the purpose of providing an additional prepaid dental plan option to County employees and retirees. BACKGROUND 1 . The Contra Costa Health Plan contract terminates September 30, 1990. There are approximately 1,000 enrolled County members. In order to ensure uninterrupted medical coverage, it is necessary to renew this contract. 2. The Kaiser Health Plan contract terminates September 30, 1990. There are approximately 4, 500 enrolled active and retired members. In order to ensure uninterrupted medical coverage, it is necessary to renew this contract. CONTINUED ON ATTACHMENT: X YES SIGNATURE: 26-'e", RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE S : ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS 1 HEREBY CERTIFY THAT THIS IS A TRUE AUNANIMOUS (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: Personnel Department - Benefits Div. ATTESTED SEP 2 5 1990 County Administrator PHIL BATCHELOR. CLERK OF THE BOARD OF Auditor-Controller SUPERVISORS AND COUNTY ADMINISTRATOR County Counsel BY j�/ DEPUTY M382/7-83 Board of Supervisors Page 2 September 13 , 1990 3 . The current Safeguard Dental Contract terminates September 30, 1990. There are approximately 1,000 enrolled County members. In order. to ensure uninterrupted dental coverage, it is necessary to renew this contract. 4 . It is recommended that the County self-funded (Delta) dental plan rates be increased 8% effective October 1, 1990 to ensure adequate funding for the projected dental claim loses for the current fiscal year. 5 . Through recent discussions and review of the plan experience by the County Administrator, it is recommended that the lst Choice rates be increased 18% effective October 1, 1990. The increase in premium is necessary to ensure adequate funding for the projected 1st Choice . claim losses for the current fiscal year. 6. Safeguard Health Enterprises, Inc. provides a variety of prepaid dental programs. In a continuing effort to provide effective cost control methods for the County dental programs, an additional program is available from Safeguard that continues to provide quality care .at an affordable premium. FISCAL IMPACT 1 . The Contra Costa Health Plan rate increase will be funded from budgeted fiscal year 1990-91 funds for County Departments and Special Districts. The rate increase for retirees will be funded from retiree member contributions and the County General Fund. 2 . The Kaiser Health Plan rate increase will be funded from active members agreed contributions as outlined in the Memorandum of Understanding and budgeted fiscal year 1990-91 funds for County Departments and Special Districts. The rate increase for retirees will be funded from retiree member contributions and the County General Fund. 3 . The Safeguard program continues to provide quality care at affordable premiums. By renewing a two year contract, the County is able to negotiate a guaranteed premium rate regardless of program utilization. 4.. The County's self-funded (Delta) dental plan rate increase will be funded from active members agreed contributions as outlined in the Memorandum of Understanding and budgeted. fiscal year 1990-91 funds for County Departments and Special Districts. The rate increase for retirees will be funded from retiree member contributions and the County General Fund. 5. The entire 1st Choice Health Plan increase will be funded from active members agreed contributions, as outlined in the Memorandums of Understanding, and budgeted fiscal year 1990-91 funds from County Departments and Special Districts. The rate increase for retirees will be funded from the member contributions and the County General Fund. 6. Savings from the Safeguard Health Enterprises, Inc. program will depend upon the number of enrollees and program utilization. Overall, it is anticipated that by offering this additional plan option, it will further assist in reducing claim losses and premium increases.