HomeMy WebLinkAboutMINUTES - 08192008 - D.2 TO: BOARD OF SUPERVISORS
-"` CONTRA
FROM: Carlos Baltodano, Interim Director of Human Resources COSTA
ATE: August 19, 2008 COUNTY
SUBJECT: Employee Benefit Plan Contract Renewals
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
AUTHORIZE THE INTERIM DIRECTOR OF HUMAN RESOURCES or designee to execute the contract
renewal with Health Net HMO/EPO for the contract period of January 1, 2009 through December 31, 2009.
FISCAL IMPACT:
The Fiscal Impact as presented in the Board Order of August 12, 2008 will be reduced by approximately
$772,284 for Plan Year 2009 and $386,142 for Fiscal Year 08-09.
BACKGROUND:
On August 12, 2008, the Board of Supervisors received a report from the Human Resources Department
recommending contract renewals for the Non PERS Health Plan, Dental Plan and Life Insurance Plan carriers
for the contract period of January 1, 2009 through December 31, 2009. The Board of Supervisors approved
the renewals for the Contra Costa Health Plan, Kaiser, Health Net PPO, Delta Dental and Vision Service Plan.
The Board of Supervisors did not approve the premium increase of 16.53% for the Health Net HMO/EPO Plan.
The Board of Supervisors directed Human Resources staff to continue negotiating with Health Net and to
indicate to Health Net the Board's displeasure with the increase requested.
1uman Resources Staff and Buck Consultants working with Mr. George Anderson, Vice President of
Commercial Large Groups and National Accounts for Health Net, were able to negotiate a renewal rate of
11.8% which reflects a reduction of 4.73% from the initial renewal request of 16.53%.
CONSEQUENCE OF NEGATIVE ACTION:
In order to prevent the disruption of services for Health Net HMO/EPO members, it is necessary to execute
contract renewal with Health Net HMO/EPO.
CONTINUED ON ATTACHMENT: YES SIGNATURE: ��
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON APPROVED AS RECOMMENDED� O ER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT
UNANIMOUS(ABSENT ) COPY OF AN ACTION TAKEN AND ENTERED ON THE
AYES: NOES: MINUTES OF THE BOAR OF SUPERVISORS ON THE DATE
ABSENT: ABSTAIN: SHOWN. �7
�rig. Dept: Human Resources Dept., Benefits Service Unit(5-1747) ATTESTED of��
c: Human Resources Department J N B. LEN,CLERK OF THE BOARD OF
County Administrator ERVI ORS AND C:_QUN.TY ADMINISTRATOR
County Counsel
Auditor-Controller BY -, DEPUTY
M382(10/88)