HomeMy WebLinkAboutMINUTES - 01281992 - 2.1 TO: BOARD OF SUPERVISORSt--L
Contra
FROM: Mark Finucane, Director ! `
Costa,Ocla
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Health Services Department
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DATE: January 23 , 1992
SUBJECT:Title 10, Section 1300. 76. 1.
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
.I. RECOMMENDED ACTION:
Authorize the County Treasurer to deposit $300,000 with a bank or
savings and loan association approved by the State .Department of
Corporations and assign said deposit to the State Department of
Corporations in satisfaction of requirements imposed upon the Contra
Costa Health Plan by Title 10, Section 1300.76.1.
Authorize the County Treasurer to, from time-to-time, deposit with a
bank or savings and loan association approved by the State Department
of Corporations and assign to the State Department of Corporations, the
amount of funds determined by the Director of the Health Services
Department or his designee, necessary to satisfy the requirements
imposed upon the Contra Costa Health Plan by Section 1.377 of the
Health and Safety Code.
Direct the County Administrator to pursue actions necessary to amend
the above referenced Code Sections to exempt publicly sponsored health
plans from these deposit requirements.
II FINANCIAL IMPACT
The Health Plan will lose use of these funds to pay operating expenses
(cash flow impact only). Interest earned on the depositwill ontinue to
accrue to the Health Plan.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON .January 28, 1992 APPROVED AS RECOMMENDED X OTHER X
Milton Camhi, Health Services Department, presented the staff report. Board members and
staff discussed the new regulations and the impact on the County.
IT IS BY THE BOARD ORDERED THAT the above recommendation is APPROVED.
IT IS FURTHER ORDERED THAT the County Administrator is REQUESTED to explore the feasibility
of having legislation introduced to provide for continued exemption for counties with
good credit ratings.
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
CC: Health Services ATTESTED j&PAARry 28, 1999
County Administrator PHIL BATCHELOR,CLERK OF THE BOARD OF
County Treasure-Tax Collector SUPERVISORS AND COUNTY ADMINISTRATOR
County Auditor-Controller
BY � ,DEPUTY
M362 (1088)
-2-
III. BACKGROUND:
The Contra Costa Health Plan is required to operate consistent with all
regulations issued by the Insurance Commissioner for the State of
California. The Commissioner recently imposed new deposit
requirements in Title 10, Section 1300.76.1. The regulations require all
licensed knox-keene health plan to deposit and assign to the
Commissioner an amount not less .than $300,000 which shall be used by
the Commissioner to protect the interests of the plan's enrollees and to
assure continuation of health care services or for administrative costs
incurred by the Commissioner in the event a health plan becomes
financially insolvent.
Section 1377 of the Health and Safety Code was recently amended to
require in certain circumstances, health plans to, from time-to-time,
deposit and assign to the Commissioner an amount equal to a
percentage of the health plan's unpaid medical service claims. The
Commissioner will use the funds to protect the interests of the plan's
enrollees and to assure continuation of health care services in the event
a health plan becomes financially insolvent. No deposit is currently
required of the Contra Costa Health Plan under this regulation.
cc: Health Services Director
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