HomeMy WebLinkAboutMINUTES - 08142012 - SD.5RECOMMENDATION(S):
AUTHORIZE the Director of Human Resources or designee to execute contract renewals with the Non PERS Health
Plan, Dental Plan, Life Insurance Plan and Video Display Terminal Plan carriers listed below for the contract period
January 1, 2013 through December 31, 2013.
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 of the calendar year 2013 premium increase, to the
County and Special Districts for County (Non PERS) health plans, is 0.1% or approximately $146,400. For Fiscal
year 2012/2013 the impact is approximately $73,200. The fiscal impact is based on the Management Resolution,
Memoranda of Understanding and census data in effect as of August 1, 2012 and is included in the 2012/2013
adopted budget.
BACKGROUND:
Contra Costa County contracts for health, dental and life insurance coverage and video display terminal plan
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, 2012. In order to ensure uninterrupted
coverage for enrolled members, 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), and the passage of the Patient
Protection & Affordable Care Act as amended by the Health Care & Education Reconciliation Act of 2010.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 08/14/2012 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:Candace Andersen, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
ABSENT:John Gioia, District I
Supervisor
Contact: Christine Penkala, (925)
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: August 14, 2012
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc: Robert Campbell, Auditor-Controller
SD. 5
To:Board of Supervisors
From:Ted Cwiek, Human Resources Director
Date:August 14, 2012
Contra
Costa
County
Subject:Employee Benefit Plan Contract Renewals - 2013
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 2012. 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 2013 is 9%. The increases recommended in the health care
contract extensions are 4.9%. This results in a 0.1% increase in the County share. If CalPERS plans are included, the
percentages are 5.6% and 1.5% respectively. For more information regarding Contra Costa’s OPEB liability, please
visit the County’s website at http//www.co.contra-costa.ca.us.
Buck Consultants National Healthcare Trend Survey shows national healthcare trend at roughly 9.9% for HMO and
PPO plan designs similar to those offered by Contra Costa County. Northern California trend figures tend be higher
than the national average. The national trend for Medicare supplement plans with Rx coverage remains roughly 6.1%.
The following contracts are renewed in accordance with the following rate increases effective January 1, 2013.
BACKGROUND: (CONT'D)
PLAN TYPE RATE INCREASE
Non Medicare Plans
Contra Costa Health Plan A 3.00%
Contra Costa Health Plan B 3.00%
Health Net HMO Plan A 6.5%
Health Net HMO Plan B -1.0%
Kaiser Permanente Plan A 9.71%
Kaiser Permanent Plan B 6.9%
Health Net CA & Nat’l PPO Plan A 9.9%
Health Net CA & Nat’l PPO Plan B 9.9%
Medicare Out-of-Area & Coordination of Benefit Plans
Contra Costa Health Plan A -43.8%
Contra Costa Health Plan B -48.8%
Health Net COB Plan A 3.56%
Health Net CA & Nat’l PPO Plan A 1.9%
Health Net CA and Nat’l PPO Plan B 1.9%
Medicare Senior Advantage Plans
Health Net Seniority Plus Plan A 6.26%
Health Net Seniority Plus Plan B 6.26%
Kaiser Senior Advantage Plan A 2.66%
Kaiser Senior Advantage Plan B 2.66%
Dental
Delta Dental Premier – ASO Fees No change - guaranteed through 12/31/14
Delta Dental Claims Fees No change
DeltaCare PMI No change - guaranteed through 12/31/14
Life Insurance No change – guaranteed through 12/31/13
Video Display Terminal Plan No change – guaranteed through 12/31/13
The following contact will not be renewed:
Kaiser Out of Area Medicare Supplement Plan – in accordance with CMS requirements.
CONSEQUENCE OF NEGATIVE ACTION:
In order to prevent the disruption of services for employee group benefits, it is necessary to execute contract renewals.
CHILDREN'S IMPACT STATEMENT:
Not applicable.