HomeMy WebLinkAboutMINUTES - 06251985 - 1.97 TC: ' BOARD OF SUPERVISORS,
FROM: Mark. R. Finucane, Health Services Director `-'tetra
Costa
DATE: May 30, ,1985 County
SUBJECT: CONTRA COSTA HEALTH PLAN 1985-86 RATES
' .RESOLUTION No. 85/368
SPECIFIC REQUEST(i) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
I. RECOMMENDED ACTION:
Adopt the attached monthly rates for membership in the Contra Costa Health
Plan by public employee groups, private groups, and private non-group
Medicare and individual subscribers, such rates to, be effective on contract
renewal date.
II . FINANCIAL IMPACT:
Assuming no change in enrollment in the affected group, premium revenue
will increase by $154,089.62 annually.
III. REASONS FOR RECOMMENDATION/BACKGROUND:
The Contra Costa Health Plan revises its rates annually based on projected
costs, membership mix, family size, and considerations of competition. The
Health Plan traditionally has set its rates below the anticipated rates of
its competitors and has considered price advantage as its most significant
marketing ,tool . This year The Plan has again attempted to maintain its
position as the lowest priced .in the County marketplace, while keeping in
mind the need to begin to decrease the County's resource contribution to
the private enrollment program.
I
The recommended rates for 1985-86 represent increases of 16.4% for public
employers and 19.3% for private employers. These rates of increase are
high because they represent not only the normal inflationary increase, but.
also an increase to compensate for last year's rates which were several
percentage points too low considering the cost of service.
These rates will result in premium revenue which will reduce The Plan's
need for. County contribution to this program by 27.8%, assuming that
enrollment levels remain the same. Coupled with The Plan's two year
marketing ,plan and growth objectives, we believe the proposed rates serve
The Plan and the County equally well .
IV. CONSEQUENCES OF NEGATIVE ACTION:
The Plan should communicate the new rate structure to its major employer
groups by- June 30, 1985. The revenue increase will not be realized if the
Board action is negative.
CONTINUED ON ATTACHMENT: X-YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF dOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S)
ACTION OF BOARD ON June 25 , 1985 APPROVED AS RECOMMENDED OTHER
RESOLUTION NO. 85/368
VOTE OF SUPERVISORS
X UNANIMOUS (ABSENT , ) I HEREBY CERTIFY THAT THIS IS A TRUE
AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN
ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD
OF SUPERVISORS ON THE DATE SHOWN.
CC: County Administrator ATTESTED June 25 , 1985
Auditor-Controller PHIL BATCHELOR, CLERK OF THE BOARD OF
Health Services
Contra Costa Health Plan SUPERVISORS AND COUNTY ADMINISTRATOR
Health Services Contracts & Grants 7 I;fa
M382/7-83 BY DEPUTY
CONTRA COSTA HEALTH PLAN
I _
PROPOSED 1985-86 RATES
Public Employers Medicare
Two Tier
Single $ 70.16 $ 51 .85
Family 181 .99 151 .54
Three Tier
Single 70.16 51 .85
Dual 140.32 122.08 (1 eligible)
Family 205.63 178.48 (1 eligible)
164.51 (2 eligible)
Private Employers
Two Tier
Single $ 82.50 $ 61 .19
Family 203.45 174.17
;Three Tier
Single 82.50 61 .19
Dual 165.00 143.69 (1 eligible)
Family 233.00 201 .63 (1 eligible)
186.86 (2 eligible)
Private Individual Contracts
Single $ 86.92
Dual .173.84
Family 252.03
Medi-Key
High Option $ 66.35
Low Option 41 .00
D12-RATES.3;
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-a
CONTRA COSTA HEALTH PLAN ,
RATES COMPARISON
Public Employer Groups
Two Tier 84-85 85-86 Increase MediCare 84-85 85-86 Increase
...Single $ 60.25 , $ 70.16 16.4% Single $ 44.14 $ 51.85 17.5%
Family 153.931 181.99 18.3% Family 127.68 151.54 18.7% E
Three Tier
Single $ 60.25 ' $ 70.16 16.4% Single $ 44.14 $ 51.85 17.5%
Dual 120.50 140.32 16.4% Dual (1) 104.39 122.08 16.9%
Family 162.28 205.63 26.7% Family(1) 139.48 178.48 28.0%
Family(2) 127.68 164.51 28.8%
Private Groups
Two Tier 84-85 85-86 Increase 4ediCare 84-85 85-86 Increase
Single 69.13 $ 82.50 19.3% Single 50.76 61.19 20.5%
Family 172.081 `, 203.45 18.2% Family 146.84 174.17 18.6%
i
Three Tier
Single $ 69.13, $ 82.50 19.3% Single $ 50.76 $ 61.19 20.5%
Dual 138.26' 165.00 19.3% Dual(1) 119.89 143.69 19.9%
Family 186.61' 233.00 24.9% Family(1) 159.57 201.63 26.4%
Family(2) 146.85 186.86 27.3%
Private MediCare (Medi-Key) 84-85 85-86 Increase
s
High Option '' $ 66.35 $ 66.35 - 0 -
Low Option 41.00 41.00 - 0 -
Private Individuals 84-85 85-86 Increase
I
Single $86.92 $ 86.92 - 0 -
Dual 173.84 173.84 - 0 -
Family 252.03 252.03 - 0 -