HomeMy WebLinkAboutMINUTES - 09142010 - D.3RECOMMENDATION(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, 2011 through December 31, 2011.
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 2011 premium increases - to the County
and Special Districts for Non-PERS Health Plans is 4.9% or approximately $5 million. For
fiscal year 2010/2011 the impact is approximately $2.5 million. The fiscal impact is based
on the Management Resolution and Memorandums of Understanding in effect as of August
19, 2010, and are included in the 2010/11 adopted budget.
BACKGROUND:
Contra 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: 09/14/2010 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I
Supervisor
Mary N. Piepho, District III
Supervisor
Susan A. Bonilla, District IV
Supervisor
Federal D. Glover, District V
Supervisor
ABSENT:Gayle B. Uilkema, District II
Supervisor
Contact: Ted Cwiek, (925)
335-1766
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 14, 2010
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc: Laura Strobel, Budget System Administrator, Lisa Driscoll, County Finance Director
D. 3
To:Board of Supervisors
From:Ted Cwiek, Human Resources Director
Date:September 14, 2010
Contra
Costa
County
Subject:Employee Benefit Plan Contract Renewals - 2011
2010. In order to ensure uninterrupted coverage for enrolled members (active, retirees and
survivors) it is recommended that these contracts be renewed.
Health care costs continue to receive a good deal of attention due to steep increases in
premiums, increased retiree to active employee ratios, new requirements regarding reporting
liabilities (GASB 45), the passage of the Patient Protection & Affordable Care Act as
amended by the Health Care & Education Reconciliation Act of 2010, and Contra Costa's
documented other post employment benefit (OPEB) liability.
Due to its size, Contra Costa County is required to perform an other post employment
benefit actuarial evaluation every two years. The most recent evaluations were performed
with data gathered in January 2010. These actuarial valuations cover a 30 year period and
include several assumptions. One of the assumptions is the medical inflation rate. The
actuarial assumed medical inflation rate for January 2011 was 9%. The increases
recommended in these contract extensions total 6.2% resulting in a 4.9% increase in the
County share. If CalPERS plans are included, the percentages are 6.7% and 5.1%
respectively. What this means is that these contracted increases are within the current OPEB
liability calculated for Contra Costa County. (For more information regarding Contra
Costa's OPEB liability, please visit the County's website at
BACKGROUND: (CONT'D)
http://www.co.contra-costa.ca.us.
The following contracts are renewed in accordance with the following rate increases
effective January 1, 2011 (PERS plans will be addressed in a separate Board action):
Rate Increase
Non Medicare Plans
Contra Costa Health Plan A 4.00%
Contra Costa Health Plan B 4.50%
Health Net HMO/EPO 4.24%
Kaiser Permanente 11.53%
Health Net PPO 12.75%
Medicare Out of Area & Coordination
of Benefits Plans
Contra Costa Health Plan A 4.00%
Contra Costa Health Plan B 4.50%
Health Net HMO/EPO 13.94%
Kaiser Permanente 2.45%
Health Net PPO 12.75%
Medicare Advantage Plans
Health Net Seniority Plus 9.20%
Kaiser Senior Advantage 2.00%
Dental
Delta Dental Premier No Change
DeltaCare PMI No Change
Life Insurance No Change
Video Display Terminal Plan No Change
CONSEQUENCE OF NEGATIVE ACTION:
In order to prevent the disruption of services for health plan and life insurance members, it
is necessary to execute contract renewals with Health Plan, Dental Plan, and Life Insurance
Plan carriers.