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HomeMy WebLinkAboutRESOLUTIONS - 01011992 - 1992-328 33 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on May 191 1992 by the following vote: AYES: Supervisors Powers , Fanden, Schroder, Torlakson, N!cPeak NOES: None ABSENT: None ABSTAIN:None SUBJECT: Approval of Side Letter with CCCEA, Local No. I } Resolution. No. 92/ 328 } BE IT RESOLVED that the Beard of Supervisors of Contra Costa County APPROVES the side letter (copy attached and included as part of this document), jointly signed' by Richard K. Heyne,, Employee Relations Manager and henry Clarke, President, Contra Costa County Employees Association, Local No. 1., which 'modifies the incentive compensation plan for Contra Costa Health Plan sales staff. All terms and conditions of the Memorandum of Understanding shall apply except as modified or specifically excluded in this side letter. I hereby Certtty that this is a true and correct copy of an action taken end entered on the minutes of th3 sosrM of supervisors on the date shown. PHIL SATCHELOR. leek of the Board of Supervisors and County,Administrator oeputy Orig. Dept:: Personnel Department cc: Auditor-Controller/Payroll Health Services Department Local No. 1 RESOLUTION NO. 92/328 ONTIM COSTA Martinez, Geezer Avenge,Suitt 100U ila3l artinez,California 94553 &5- HEALTH PLA (510)313-6008 FAX(510)313-6458 Henry Clarke March 27, 1992 General Manager Contra Costa County Employees Assn., Local`l PO'Box 222 Martinez, 'CA 94553 Dear Mr Clarke: This letter confirms the understandings reached in our 'recent negotiations relative to the modification of the incentive compensation plan for ContraCosta Health Plan sales staff. All terms and conditions of the Memorandum of Understanding shall apply, except as modified or specifically excluded herein. This letter supersedes the side letter dated January 17, 1991. 1. BASE SALAAM It is understood that the base salary covers general administrative' duties such as meetings and paperwork, as well as 'staff training, public relations,' and media, planning, new product and benefit design planning, preparation for audits, and similar duties and responsibilities. The base salary for these classes will be adjusted in accordance with the Memorandum of Understanding covering the period October 1, 1991 through September 30, 1993. II. CONIl'VfISSIONS A. The enrollment standard has been set and agreed upon as reflected in the commission structure. If the Executive Director"deems it necessary to reflect significant changes in the marketing plan and resources, product line, or market place which cause unanticipated alterations in the reasonable sales earnings of staff, the Department will meet and confer with the Union regarding adjustment of the commission structure. Monthly Enrollment Goals will be prorated for employees working;, less than full time or assigned less than full" time to a particular product line. B. Monthly Enrollment Commission: Employees shall be eligible to receive a monthly enrollment commission, in addition to their base salary, based upon the approved product line payment schedules below. All commissions will be paid' in the tenth of the month paycheck. 1. Conversions - Conversions`will be counted as 50% of an enrollment per member. A conversion occurs when'a member moves with no break in coverage to any non-BAC program from any other program. Changes from one program to another within the commercial individual program, such as from FKO to OYO, and from crossover to SeniorHealth, are not emirs'Sz Henry Clarke lie considered conversions. Conversion credits are not given in addition to any other enrollment credits (e.g. add-ons). Changes in the level of benefit within. a,,program are not considered conversions. 2. Cornrnissior ructures: Employees in these classes will be responsible for, and will be paid according to the following commission structures,;regardless of holidays, vacations, or sick leave. The commission structure will not be prorated for absences. [a] Medi-CA1 Commission Structure The Medi-Cal commission structure is detailed in Attachment> 1. Accepted subscribers are these accepted and capitated by the State of California. [b] Commercial and Medicare, Cornmssion Structure - The commercial and Medicare commission structure is detailed in Attachment 2. Accepted subscribers are those accepted and capitated by HCFA (SeniorHealth Program). 3 Nsm Contract Members: Each non-subscriber member on a new individual or small (less that 25 employees) group commercial contract shall be counted as .5 enrollments (this credit shall not apply to large groups, including the County employee' group). When monthly enrollments are totaled, partial enrollments will> be paid at$10 per .5 enrollments. (Example-45.5 total enrollments will be paid at 45 from the incentive schedule, or $1,250, plus $10 for each partial [.5] or $10). (See Attachment 3.) 4. Add-on Members: Each non-subscriber member(new spouse, new baby, etc) added on to an individual program'contract shall be counted as .5 enrollments(this credit shall not apply to small or large groups including the County employee group). When monthly enrollments are totaled, partial enrollments will be paid at$10 per 5 enrollments. (Example-45.5 total enrollments will be paid at 45 from the incentive schedule, or $1,250, plus $10 for each partial[.5] or $10. (See'Attachment 3.) Henry Clarke page 5. County Gr uo: The County Group Commission will be paid for open enrollment on net gain only according to the new enrollment schedule (see Attachment 2) divided equally among commercial representatives assigned to the account, and prorated according to hours worked with that group. No commission will be paid for enrollments gained outside of open enrollment(e.g.positive enrollment)nor will retention pay be credited for this group. 6. Commissions on Sf't1arfion: All Monthly enrollment commissionsare payable if an ;employee leaves County service except commissions claimed fraudulently will be forfeited. C. Retention Commission: 1. Employees in the class of Health Plan'Medi-Cal Enroller will be eligible to receive a retention commission of$5 per enrollee who is retained for six (6) months and<paying premiums in the seventh month. 2 Employees in the class of Health Plan Sales Representative shall be eligible to receive a retention commission of $5 per member who is retained for twelve (12) months and paying premiums in the thirteenth month. For small groups the retention is payable to the sales staff assigned for three continuous months,;including the last day of the twelfth month of continuous enrollment. For Individual accounts, it is payable to the sales staff member'assigned for 12 continuous months up to and including the last day of the twelfth month. Retention for commercial groups is paid on the 'number of subscribers retained for 12 months rather than on the actual people named as subscribers. D. New Croup Commission: 1. A commission of$250 will be paid for each new group signed up which has 25 or more employees. 2. A commission of$200 will be paid for each new group:signed up which has 13 to 24 employees. 3.; A commission of$150 will be paid for each:new group signed>which has 3 to 12'employees. Henry Clarke page's 3. A commission of$150 will be paid for each.new group signed which has 3 J,to 12 employees: E. up Renewal-Commission: inion• Group renewal bonuses will be paid at 50% of the New Group Commission bonus based on the size of the group at renewal, except the County Group. F. I= Bonus: Each sales representative will be paid an additional bonus award of'$50 if all representatives reaches their commission thresholds(77 subscribers for Medi-Cal, 27 subscribers for Commercial/SeniorHealth) in the same'month. G. Agent/Telemarketing`Initi Sales: Sales by representatives that result from leads generated by agents or from telemarketing activities are compensated at the same rate`,as other Commercial enrollments. H. Broker Initiated Sales: If a group or individual is brought to Contra Costa Health Plan, the Plan Commercial Representative who is assigned the account will receive a "new group" bonus of$150 for groups with 3 to 12'subscribers; $200 for groups with 13 to 24 subscribers, and $250 for groups with 25 or more subscribers. One half of the bonus amounts (at the current renewal level) will be paid if the account is subsequently renewed. All retention moneys which subsequently become payable will also be credited. However,representatives shall not receive a per subscriber or per member commission for broker initiated'accounts. 1. NZ IP and AIM Program'Enrollments: M11MIP subscribers shall be credited to the representatives the same as individual commercial if the original rejected application was handled by that representative. However', no commission credit will be allowed for AIM subscribers. J., Joint Sales and Shared Comm' ' Joint sales and shared commissions must be negotiated between 'interested representatives prior to the formal close of a We, and roust be recommended by the Director of Marketing and approved in writing by the Executive Director in advance. Each arrangement shall be evaluated on a case'by case basis. Henry Clarke page' K. Emergme and Volp„nrfisenr 1 meets: Any request by a subscriber or the State or Federal Government for an emergency tiisenrollment at any time, or a voluntary disenroilment within two', months of acceptance, and deemed by the Director of Marketing in consultation with the Executive Director to be within the control of the representative, shall be subtracted from the following month's cumulative commission totals. L. Duration of Incentive Pay Schedules: The incentive pay schedules in Sections i1 B C, D, E, F, G, H, I, and J are established to provide reasonable potential earnings parameters for employees which are consistent with those of the managed health'care industry. It is recognized, however, that factors outside the control of the employees or sales management may unreasonably influence potential earnings either positively or negatively. If such events occur, the County'may need to make adjustments to correct the distortion of reasonable earnings parameters. Such'adjustments'will be,preceded by notice to the union at least 30 days prior to the proposed effective date. M. Termination of Emnl©yment: Employees shall not be eligible to receive Retention Commissions after separation. N. Sal= Ceiling: The pay plan is intended to reward outstanding performance: in no case, however, shall an employee receive total base pay and incentive :pay compensation in any fiscal year which amounts to more than the top step of the salary of the Marketing Director,''Contra Costa Health Plan. When an employee approaches this ceiling, all commissions which, combined with anticipated base pay earnings for the duration of the fiscal year, exceed this amount will be retained by Contra Costa'Health Plan. Retained commissions may not be rolled over to the next fiscal year. Employees approaching this salary ceiling are, nevertheless, expected to continue their best efforts in performance of their sales assignments. III. C+() ` '1 C# MI'M'I.AL A 'P4 I'T': New appointees will be compensated at the appropriate step of the base range until they reach the level of performance which qualifies them to receive commissions. IV. PART C©hMSAMN Monthly enrollment commissions shall be prorated in accordance with the provisions of the Memorandum of Understanding. Henry Clarke page 6 V. LQN FOR pQgUQXOF MONTH: Monthly enrollment commissions shad be prorated in accordance with the provisions of the Memorandum of Understanding. VI. I"AY FCIR M�=K IN A DIMRENT SSI �A : An employee'may be assigned to different product lines as necessary to meet operational needs. When an employee in a permanent position is required to work in another product line or sales classification for which commission compensation is different than that to which the employee is regularly assigned, the base pay will compensate the employee for periods of less than 9 working days. When such an assignment exceeds' 9 working days, Monthly Enrollment Commissions will be paid according to the schedules for the different product line or class, whether it is higher or lower. If the assignment is part time or intermittent, the Monthly Enrollment Commissions will be paid on a pro rata basis. VII. DAYS AND.HO_TM,OF M QR_K: The normal work week of employees in these classifications is forty'(40)hours. Actual daily work schedules will be arranged to meets operational needs with work'schedules and total hours worked assigned by the supervisor. Employees in these classifications are not normally eligible to receive overtime or shift differential. However, upon the recommendation tion of the Director of Marketing, and prior written approval of the Executive Director, full time Commercial/Medicare marketing representatives can be paid overtime for special events (e.g Saturday health' fairs). VIII. PERFiOR11rIANCE EVALUAT-10N MQCFI�URE: The provisions of the Memorandum of Understanding shall apply.' The remainder'.of the provisions are superseded by the following. A. The minimum'acceptable level of productivity for Medi-Cal shall be 60 lines per month,and for SeniarHealthlCommercial shall be any combination of subscriber, nonsubscriber member and conversions (see Attachment 3) totalling 20 per month. Employees are expected to meet these minimum standards and will be subject to disciplinary action, up to and including dismissal, for failure to do so. In cases of authorised absences, the minimum acceptable level of productivity'will be prorated on a daily basis. B. Unw&wtaWe Sales practices: Misrepresentation, fraud or gross misconduct in sales activities shall' be cause for immediate dismissal pursuant to the Skelly provisions of the Memorandum of Understanding. All commissions not yet paid to the employee by the effective date of the separation will be forfeited. IX. AI1t Il USIR-A�"�iyE SUPPORT: Management will continue its practice of lead generating activities and will provide such clerical support'as it deems necessary, Henry Clarke Page X. GREh== Base salary plus commission willl be counted as compensation for retirement purposes. X1. EFEFA IYE DA'C'E.' The effective date of the commission schedulescontained in this letter of agreement will be April 1, 1992. If the forgoing'conforms to your understanding of the agreements reached regarding the incentive compensation plan for Contra Costa Health Plan sales staff, please sign below. Sincerely,. Milt Camhi Lois Ellison Richard K. Heyne Executive'Director H.S.D. Personnel Officer Contra Costa County Employee Relations Officer '' "fined} .,��'� '' {dated} !He Clarke,rat Manager, L2mal sI_ Iffy ned} 7 '2- (dated) Billie Ioson, Ph.N. Unit President, Local. 1 IIiCeIItlYePlan Attachment 3 Man4gement Proposals/Page One Subcn'bers Current Accepted Proposed Level Commission By;State Commission 'Total Below 77 101 0-' Enrollees -0- Base Salary 77 $405 $405 78 $25 $430 79 25 $455 R] $500 /801 - /$451 /$5041 81 $15 $515 82 `. $15 $530 83 $25 $555 84 $25 $580 [2] $625 [85] j$45] [$625] 86 --tic $640 t 87 $15 $655 88 $25 - $680 89 $25 $705 131 $750 [90] 4 [$45] [$750],` 91 $15 $765 92 $15 $780 93 $25 $805 94 $25 $830 14] $875 [9S] [$45] [5875] 96 $15 $890 97 $15 $905 98 $25 $930 99 $25 $955 [5] $1,000 [100] [$45] [$1,0001 101 $15 $1,015 102 $15 $1,030 103 $25 $1,055 ___ 104 $25 $1,080 Incentive Plan: �, gement Prepo ls/Page Two Subscribers CirTent Accepted Proposed Level Commission By State Commission Total Commission [6] $1,125 [105] [$45] [$1,125] 106 $15 $1,140 107 $15 $1,155 108 $25 $11,180 109 $25 $1,205 [7] $1,250 [110] [$45] [$1,250] 111 $15 $1,265 112 $15 $1,280 113 $25 $1,305 114 $25 $1,330 [8] $1,375 [115] [$45] 1$1,3751 126 $15 $1,390 117 $'15 $1,405 118 $25 $1,430 119 $25 $1,455 [9] $1,500 [1201 [$45] [$1,5011] 121 $15 $1,515 122 $15 $1,530 123 $25 $1,555 124 $25 $1,580 1101 $1,625 112.5] [$45] [$11,625] 126 $15 $1,64..0 127' $15 $1,6:55 128 $25 $1,680 129 25 $11705 Incentive Plan` Management Proposals/Page Three Mdi.:Q9 Commission Stnire ttmd Febr w34 1 ) Subscribers Current Accepted Proposed Level Commission By State Commission Total [11] $1,750 [130] [$45] [$1,750] 131 $15 $1765 132 $15 $1,780 133 $25 $1,805 134 $25 $1,830 [12] $1,875 [135] [$451 [$1,875] 136 $15 $1,890 137 $15 $1,905 138 $25 $1,930 139 $25 $1,955 [13] $2,000 [140] [$451 [$2,000] 141 $15 $2,015 142 $ 5 $2,030 1.43 $25 $2,055' 144 $25 $2,080 [14] $2,125 [145] [$45] [$2,125] 146 $15 $2,140 147 $15 $2,155 148 $25 $2,180' 149 $25 $2,205 [15] $2,250 [150] [$45] [$2,250] The same payout pattern ($15, $15, $25, $25, $45) will be earned above level 15 for each subscriber accepted Incentive Plan Attachment 2 Management Proposals/Page tJne Current Subscribers Proposed Levu Commission Accepted* Commission TOW Below 27 [OJ Enrollees Base Salary 27 $290 $290 28 $30 $320 29 $30 $350 [1] $500 [30] [$150] 1$5001 31 $20 $520 32 $20 $540 33 $30 $570 34 $30 $600 [2] $750 [35] [$150] [$750]: 36 $20 $770 37 $20 $790 38 $30 $820 39 $30 $850 [3] $1,000 [40] [$150] [51,000] 41 $20 $1,020f 42 $20 $1,040 43 $30 $1,070; 44 $30 $1,100 R] $1,250 [45] [$150] [$1,250] 46 $20 $1$270 47 $20 $1,290 48 $30 $1,320 49 $30 $1,350 *Any combination of the values for subscribers,non-subscriber members, and conversions Incentive Plan Management Proposals/Page Tv© Current Subscribers Proposed Level Commission Accepted" Commission Total $1,500 [50] [$150] [$'1,500]' 51 $15 $1,515 52 $15 $1,530 53 $1.5 $1,545 54 $15 $1,560 55 $15 $1,575 56 $20 $1,595 57 $20 $1,615 58 $20 $1.,635 59 $20 $1,655 [6] $1,750 [60] [$95] [$1,750] 61 $15 $1,765' 62 $15 $1,780 63 $15 $1,795 64 $15 $1,810', 65 $15 $1,825` 66 $20 $1,845' 67 $20 $1,865 68 $20 $1,885 69 $20 $1,905:: [7] $2,000 [70] [$95] [$2,000] y co m"Mhon o e values' or su scri rs, non-sub'scriber members, an corn ers©ns The same payout pattern ($15, $15, $15, $15, $15 $20, $20, $20, $20, $95) will be earned above level 7 for each subscriber accepted. • C