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HomeMy WebLinkAboutMINUTES - 06251991 - 1.95 TO: . BOARD OF SUPERVISORS Contra FROM: Phil Batchelor, County Administrator Costa 'f r., ,5 mvz. ter, June 24, 1991i"� Count DATE: LEGISLATION: ADOPT A POSITION IN OPPOSITION TO A GROSS SUBJECT: PREMIUMS TAX ON NON-PROFIT HEALTH CARE SERVICE PLANS SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECORDATION• Adopt a position in OPPOSITION to any legislation which would impose a gross premiums tax on non-profit health care service plans since doing so would effectively require the health plan to pass such a tax on to the employers and employees who finance those health plans and authorize the Chairman to send a letter to the members of this County' s legislative delegation sharing with them the Board' s position. BACKGROUND: Our Risk Management Office has been advised by Kaiser Foundation Health Plan, Inc. that one mechanism being discussed in Sacramento as a way to balance the State's Budget is to impose a 2% gross premiums tax on all non-profit health care service plans, such as Kaiser and Blue Cross. Of course, since such plan are non-profit, they have little alternative but to pass this additional cost along to their subscribers and the subscribers' employers. Such a gross premiums tax would cost Contra Costa County as an employer, and its employees, aundreds of thousands of dollars a year. While we are . vitallyl concerned with the State Budget deficit and the efforts to close the gap between revenues and expenditures, this does not appear to be a legitimate way in which to balance the State Budget. CONTINUED ON ATTACHMEN;C YES SIGNATURE: ,Ie `//� 5Xa,(_94, RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE S: ACTION OF BOARD ON June 2 , APPROVED AS RECOMMENDED -4 OTHER VOTE OF SUPERVISORS -� I HEREBY CERTIFY THAT THIS IS A TRUE X 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. County Administrator CC: Risk Manager ATTESTED Director of Personnel PHIL IOTCHELOR,CLERK OF THE BOARD OF County Counsel SUPERVISORSAA,N�D COUNTY ADMINISTRATOR Auditor-Controller Les Spahnn (� M382 (10/88) SRJ. Jackson, Barish & Assoc. BY DEPUTY