HomeMy WebLinkAboutMINUTES - 09152009 - D.6RECOMMENDATION(S):
Authorize the Director of Human Resources or designee to execute contract renewals with
the Non PERS Health Plan, Dental Plan, and Life Insurance Plan carriers listed below for
the contract period January 1, 2010 through December 31, 2010.
FISCAL IMPACT:
Premiums for active and retired members are funded by a combination of
employee/retiree/survivor contributions and charges to County Departments and Special
Districts. The cost increase – of the calendar year 2010 premium increases – to the County
and Special Districts for Non-PERS Health Plans is 3.1% or approximately $3 million. For
fiscal year 2009/10, the impact is approximately $1.5 million. The fiscal impact is based on
the Management Resolution and Memorandums of Understanding in effect as of September
1, 2009.
BACKGROUND:
County Costa County contracts for health, dental and life insurance coverage for its
employees, retirees and survivors on an annual basis. These contracts traditionally cover a
calendar year (January 1 through December 31). Current contracts expire December 31,
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 09/15/2009 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: Christine Penkala,
335-1746
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: September 15, 2009
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc: County Administrator, County Counsel, Auditor-Controller, Human Resources, Human Resources
D. 6
To:Board of Supervisors
From:Ted Cwiek, Human Resources Director
Date:September 15, 2009
Contra
Costa
County
Subject:Employee Benefit Plan Contract Renewals - 2010
2009. In order to ensure uninterrupted coverage for enrolled members (active, retirees and
survivors) it is recommended that these contracts be renewed.
Health care costs have received a good deal of attention over the last few years due to steep
increases in premiums, increased retiree to active employee ratios, new requirements
regarding reporting liabilities (GASB 45), renewed interest in national health care, and
specifically Contra Costa’s documented other post employment benefit (OPEB) liability.
Due to its size, Contra Costa County is required to perform an actuarial evaluation every
two years. The most recent evaluations were performed with data gathered in January 2008.
These actuarial valuations cover a 30 year period and include several assumptions. One of
the most important assumptions is the medical inflation rate. The actuarial assumed medical
inflation rate for January 2010 was 8%. The increases recommended in these contract
extensions total 7.49%. What this means is that these contracted increases are within the
current OPEB liability calculated for Contra Costa County (For more information regarding
the Contra Costa’s OPEB liability, please visit County’s web-site at
BACKGROUND: (CONT'D)
http://www.co.contra-costa.ca.us).
The following contracts are renewed in accordance with the following rate increase effective
January 1, 2010 (PERS plans will be addressed in a separate Board action):
Rate Increase
Non Medicare Plans
Contra Costa Health Plan A 2.00%
Contra Costa Health Plan B 2.00%
Health Net HMO/EPO 16.91%
Kaiser 8.80%
Health Net PPO 7.16%
Medicare Out of Area &
Coordination of Benefits
Plans
Contra Costa Health Plan A 2.00%
Contra Costa Health Plan B 2.00%
Health Net HMO/EPO 3.00%
Kaiser 4.10%
Health Net PPO 7.16%
Medicare Advantage Plans
Health Net Seniority Plus 25.00%
Kaiser Senior Advantage 10.35%
Dental*
Delta Dental Premier No Change
DeltaCare PMI No Change
Life Insurance*No Change
Video Display Terminal
Plan*1.40%
* Rates guaranteed through 12/31/2011
CONSEQUENCE OF NEGATIVE ACTION:
In order to prevent the disruption of services for health plan and life insurnace members, it
is necessary to execute contracts renewals with Health Plan, Dental Plan, and Life Insurnace
Plan carriers.