HomeMy WebLinkAboutMINUTES - 07212009 - D.13RECOMMENDATION(S):
Acting in the capacites of the Governing Body of Contra Costa County, Contra Costa
County Fire Protection District, the East Contra Costa Fire Protection District, and the
Contra Costa In-Home Supportive Services (IHSS) Public Authority, ADOPT Resolution
2009/344 applying health plan modifications to certain retirees.
FISCAL IMPACT:
While providing sound health care coverage for retirees, the recommended changes to the
health plan will result in significant future impact on the County's, Fire Districts', and
IHSS's overall fiscal stability and ability to deliver public services.
BACKGROUND:
On July 7, 2009, the Board of Supervisors received a report on the County's other post
employment benefits regarding proposed future costs/savings of changes in other post
employment benefits. At that meeting, staff from the County Administrator's office
announced that the County Administrator would be recommending that the Board consider
taking formal action with respect to proposed changes in health care affecting:
both safety and non-safety unrepresented employees, elected and appointed officials
APPROVE OTHER
RECOMMENDATION OF CNTY
ADMINISTRATOR
RECOMMENDATION OF BOARD
COMMITTEE
Action of Board On: 07/21/2009 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Gayle B. Uilkema, District II Supervisor
Mary N. Piepho, District III Supervisor
Susan A. Bonilla, District IV Supervisor
Federal D. Glover, District V Supervisor
Contact: Lisa Driscoll, County
Finance Director, 335-1023
I hereby certify that this is a true and correct copy of an action taken and entered on
the minutes of the Board of Supervisors on the date shown.
ATTESTED: July 21, 2009
David J. Twa, County Administrator and Clerk of the Board of
Supervisors
By: June McHuen, Deputy
cc: County Administrator, Auditor-Controller, County Counsel, Human Resources, Contra Costa County Fire Protection District ,
Contra Costa County Employees' Retirement Association, East Contra Costa Fire Protection District, In-Home Supportive Services Public
Authority (via CAO)
D. 13
To:Board of Supervisors
From:David Twa, County Administrator
Date:July 21, 2009
Contra
Costa
County
Subject:OPEB - Application of Health Plan Modifications to Retirees
both safety and non-safety unrepresented employees, elected and appointed officials
and persons who retired from classifications that were unrepresented, elected or
appointed at the time of retirement and who are eligible for health care coverage;
employees represented by unions in the Coalition Bargaining Group: AFSCME Local
512, Professional and Technical Employees; AFSCME Local 2700, United clerical,
Technical and Specialized Employees; Public Employees Union Local One, FACS Site
Supervisor Unit; Public Employees Union Local One; SEIU Local 1021, Rank and File
Unit; SEIU Local 1021, Service Line Supervisors Unit; Western Council of Engineers,
and persons who retired from classifications that were represented at the time of
retirement by unions currently in the Coalition Bargaining Group and who are eligible
for health care coverage.
The County Administrator is recommending adoption of the attached resolution (2009/344),
which applies health plan modifications (summarized below) to retirees in the above listed
groups:
BACKGROUND: (CONT'D)
New Hires. For Unions in the Coalition Bargaining Group, employees hired after
December 31, 2009 will not receive a County subsidized retiree health/dental care
benefit. (This took effect for new non-safety management and unrepresented employees
on 01/01/09.)
Medicare Parts A and B . Effective 01/01/10, require enrollment in Medicare Parts A
and B for individuals represented by unions in the Coalition Bargaining Group and
associated retirees who become 65 on or after January 1, 2010. (This took effect for
management and unrepresented employees and associated retirees effective 01/01/09.)
Dual Coverage. Provide as of 01/01/10, that employees and retirees and dependents of
employees and retirees can no longer have dual coverage in two County/District/IHSS
health or dental plans. This provision will apply to County, District, and IHSS
employees and retirees who have spouses or partners who are either County, District, or
IHSS employees or retirees.
Premium Cost Sharing (Other Than CalPERS Plans)
Contra Costa Health Plan and Coordinated Dental Plans – Currently shared 98%
County, 2% Participant for Plan A and 90% County, 10% Participant for Plan B.
Effective 01/01/10, cost sharing for Plan A to change to 93% County and 7%
Participant. Cost sharing for Plan B to change to 87% County and 13%
Participant.
Effective 01/01/11, increases in Plan A and Plan B to be shared 50% by the
County and 50% by the Participant, up to a maximum of 11%; portion of
increase above 11% to be paid by the County.
Kaiser and Health Net HMO and dental plans – Increases 01/01/10 and 01/01/11
to be shared 50% by the County and 50% by the Participant, up to a maximum of
11%; portion of increase above 11% to be paid by the County.
Health Net PPO- Increases 01/01/10 and 01/01/11 to be shared 50% by the County
and 50% by the Participant.
Fixed Premium. Effective 06/29/11, fix the County monthly premium subsidy for
all of these plans at the May 2011 dollar amount.
Premium Cost Sharing (CalPERS Plans)
All plans currently shared based on Bay Area/Sacramento Kaiser premium rate at
87% County, 13% Participant.
Based on that rate, increases 01/01/10 and 01/01/11 to be shared 50% by the
County and 50% by the Participant, up to 11%; portion of increase above 11% to
be paid by the County.
Fixed Premium. Effective 06/29/11, fix the County monthly premium subsidy for
all CalPERS plans at the May 2011 amount County pays for the Bay Area Kaiser
premium.
For Dental, County premium same as non-CalPERS plans.
Dental Plan Benefit. Increase to $1800, from $1600, the annual maximum benefit
available in the Delta Dental Insurance plan effective 01/01/10.
One Rate Pool. Eliminate provision applicable to management and unrepresented
employees that would have established separate rate pools during employment and upon
retirement for new employees hired on or after 01/01/09.
ATTACHMENTS
Resolution No. 2009/344