HomeMy WebLinkAboutMINUTES - 04121988 - 2.3 TO BOARD OF SUPERVISORS
FROM: Mark R . Finucane Contra
March 31 , 1988 Costa
DATE' 1%
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Cty
SUBJECT: Initial Feasibility Study on The Contra Costal OHeath Plan
Sponsoring a Long-Term Care Insurance Program.
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
I RECOMMENDED ACTION :
Accept the Initial Feasibility Study on The Contra Costa Health
Plan Sponsoring a Long-Term Care Insuran.ce Program and take the
following immediate actions :
1 ) Authorize The Contra Costa County Health Services
Department to review the financial viability of
The Contra Costa Health Plan becoming the vehicle to
insure , coordinate , and manage acute hospital care , com-
munity based and institutional long-term care services to
the elderly on a prepaid basis .
2 ) Direct The Contra Costa Health Plan to immediately seek
the estimated outside financial support of betwe,en
$250 ,000 to $400 , 000 which will be necessary to develop
a more detailed technical study using both com- '
munity input and experts in the long-term care area
including those in marketing , benefits design , actuarial
forecasting and insurance regulations .
This Technical Development plan should include the prin-
ciples and policies for a model prepaid publicly sponsored
and managed long-term care insurance program, a current
comprehensive inventory of long-term care resources in
Contra Costa County and marketing and financial projections .
The Contra Costa Health Plan is to report back by October
1 , 1988, on its efforts to obtain funding to undertake
this project.
3 ) Immediately provide $15 , 000 in " seed' money to The Contra
Costa Health Planto pay for staff time to seek this out-
side financial support. This $15 , 000 should not be taken
from funds used to provide health care services .
II FINANCIAL IMPACT:
This request will result in a special appropriation f $15, 000
for The Contra Costa Health Plan .
CONTINUED ON ATTACHMENT: — YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR V RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON IaZ APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
UNANIMOUS (ABSENT _7_ 1 HEREBY.CERTIFY THAT THIS IS A TRUE
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.
stealth Services Director ATTESTED
\ounty Administrator d-
ditor-Controller PHIL BATCHELOR. CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
BY DEPUTY
Page 2
III REASONS FOR RECOMMENDATION/BACKGROUND :
On November 3 , 1987 , the Board of Supervisors directed The
Contra Costa Health Plan and its Advisory Board to explore the
feasibility of sponsoring a long-term care insurance plan .
The Board of Supervisors also requested that The Contra Costa
Health Plan report back to the Board within the next six months
as to the viability of pursuing this concept. The Initial
Feasibility Study on The Contra Costa Health Plan Sponsoring a
Long-Term Care Insurance Program is in response to the Board of
Supervisors ' request.
At a special meeting on Wednesday , March 30, 1988, The Contra
Costa Health Plan Advisory Board reviewed the report and unani -
mously recommended that the attached document be accepted by the
Board of Supervisors . The Advisory Board specifically added
the recommendation that the Board of Supervisors provide " seed"
money to pay for staff time needed to seek outside. financial
support and that such " seed" moneys not be taken from accounts
used to provide health ' care ' services .
The key findings of the report include the demonstrated and
growing need for new methods of financing long-term care ,
including long-term care insurance ; the increasing interest on
the Federal , State and local levels in the issues of long-term
care services and the financial risks associated with offering
long-term care insurance , and the many detailed issues of program
design and funding that need to be resolved before the County
can prudently implement its own financially sound long-term
care program.
The report makes recommendations for Federal and State govern-
ment action , for community wide efforts and for County govern-
ment efforts . The report calls for the development of a Long-
Term Care Insurance Round Table of Bay Area government officials ,
union and private employer group leadership to, work together on
community approaches for long-term care coverage for their
employees .
To minimize the financial risk and to ensure an orderly deve-
lopment of a fiscally sound , comprehensive program, with
accessible high quality care , the report recommends a phased in
approach for the County government efforts .
IV C014SEQUENCES OF NEGATIVE ACTION :
The Contra Costa Health Plan will not have adequate staff
resources to- undertake the fund development activities needed
to seek outside financial support for the crucial detailed tech-
nical study phase of the County ' s long-term care program.