HomeMy WebLinkAboutMINUTES - 10312006 - C.6 TO: BOARD OF SUPERVISORS L Contra
FROM: Lori Gentles, Assistant County Administrator
Director of Human Resources Costa
Rti,
DATE: October 31, 2006 County
SUBJECT: Health and Dental Plan Contract Renewals
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
AUTHORIZE THE . ASSISTANT COUNTY ADMINSTRATOR, 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,
2007 through December 31, 2007.
FISCAL IMPACT:
Premiums for active and retired members are funded by employee contributions and
budgeted funds charged to each County Department and Special Districts.
BACKGROUND:
The County Non PERS health plans and dental plans expire December 31, 2006. In order to
ensure uninterrupted coverage for enrolled members (active, retirees and survivors) the
following contracts are renewed in accordance with the following rate increase effective
January 1, 2007:
NON MEDICARE PLANS:
CCHP A 9.90%
CCHP B 9.90%
HEALTH NET HMO/EPO 7.47%
KAISER 5.27%
HEALTH NET PPO 15.19%
CONTINUED ON ATTACHMENT: X YES SIGNATUR
----------------- ------------------------- ---------------------------- ----- -- ----- ---------- ------------------- ----------
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDA ON OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
---------------------------------- -- -------- - ---------------------------------------------------------- ------- -__--—---------------------
ACTION OF BOARD ON APPROVE AS RECOMMENDED _ OTHER
VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE
AND CORRECT COPY OF AN ACTION TAKEN
UNANIMOUS(ABSENT ) AND ENTERED ON THE MINUTES OF THE
BOARD OF SUPERVISORS ON THE DATE
AYES: NOES: SHOWN.
ABSENT: ABSTAIN: �
PC,��x' ���(/1 '
ATTESTED
CONTACT: JOHN CULLEN,CLERK OFT BOARD
OF SUPERVISORS AND COUNTY
ADMINISTRAT
CC: Human Resources Department,Benefits Services Unit(5-1747) BY
County Administrator DEPUTY
County Counsel
Auditor-Controller
MEDICARE COST AND COB PLANS:
CCHP A 9.16% to 9.63%*
CCHP B 9.24% to 9.65%*
HEALTH NET HMO/EPO 3.87% to 6.81%*
KAISER 2.84% to 4.16%*
HEALTH NET PPO 15.19%
*Dependent upon number enrolled in Medicare.
MEDICARE CHOICE (RISK) PLANS
HEALTH NET SENIORITY PLUS NO CHANGE
KAISER SENIOR ADVANTAGE -3.84% to -1.79%*
*Dependent upon number enrolled in Medicare.
DENTAL PLANS
PMI DELTACARE NO CHANGE
DELTA DENTAL 4.3%
LIFE INSURANCE
ING EMPLOYEE BENEFITS $0.01/$1,000 of coverage reduction
HEALTH PLANS
Prescription drugs continue to be a driver of increased health plan costs; however, additional
factors include plan utilization by members, higher reimbursement payments to providers and
an aging population.
DENTAL PLANS
The primary factor for the dental plan rate increases is to cover dental trend of claims
experiences and increased plan utilization by members.
CONSEQUENCE OF NEGATIVE ACTION:
In order to prevent the disruption of services for health plan, dental plan, and life insurance
members, it is necessary to execute contract renewals with the Non PERS Health Plan, Dental
Plan, and Life Insurance Plan carriers.