HomeMy WebLinkAboutMINUTES - 04281992 - D.2 TO: BOARD OF SUPERVISORS
FRCM: Phil Batchelor, County Adminstrator C ltra
C )sta
DATE: April 14, 1992 CO �r�fi'
SUBJECT; Proposed lst Choice Health Plan Trust �" "�
SPECIFIC REQUESTS) OR RECOM:IENDAT1ON(S) & PACKGROUND AND JUSTIFICATION
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RECOMMENDATION:
Accept report on status of proposed lst Choice Health Plan Joint Labor
Management Trust.
BACKGROUND:
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For more than a year, a joint labor management committee has met to oversee
the operation and administration of the lst Choice Health Plan. Employees
and retirees have been represented by eight ( 8) employees from labor
organizations and one ( 1) retiree. The County has been represented by four
( 4 ) management employees. Since inception of this Committee, some of the
significant accomplishments resulting from the Committee' s recommendations
include:
o Selection of the Segal Company as plan consultant.
o Resolution of� claim disputes.
o Determination of renewal rate charges.
o Selection of United Administrative Services as new claims
administrator.
o Selection of the Saltzman and Johnson law firm as trust attorney.
In addition, the Committee has prepared an agreement which creates a Trust
to control and manage . the lst Choice Health Plan. The County and the
Health Care Coalition are in agreement on all terms of the trust agreement,
except for the number of trustees who would serve on the Joint Board of
Trustees.
The labor organizations and retirees through the Health Care Coalition
:propose that all elevenllabor organizations be allowed a seat on the Trust,
plus one seat for a representative of the retirees, for a total of 12
trustee seats for employee representatives. The Health Care Coalition
wants each labor organization to have the opportunity to represent its
members by having a seat on the Trust. The County would have an equal
number of employer trustee seats. The total number of trustee seats per
labor' s proposal on the Joint Board of Trustees would be 24.
CONTINUED ON ATTACHMENT! X VES SIGNATURE'
.__ RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMM DA ION A BOA D OMMITTEE
APPROVE OTHER
S I GNATURE IS 1:
ACTION OF BOARD ON April 28, 1992 'AYPROVED AS REC-,MMENDED -_ OTHER X
The Board ACCEPTED the status report and CONTINUED to May 5, 1992 at 10:45 a.m.
discussion regarding composition of the lst Choice Trust Committee.
VOTE OF SUPERVISORS
I. HEREBY CERTIFY THAT THIS IS A TRUE
X UNANIMOUS (ABss=rn III ) AND CORRECT COPY OF' AN ACTION TAKEN
AYES: - — ---^------- NOES:------ ---- AND ENTERED ON THE MINUTES OF THE BOARD
.ABSENT: ABSTAIN:-------- OF SUPERVISORS CNV THE DATE SHOWN.
lst Choice Trust Committee ATTESTED A ril 28 1992
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County Administrator ---- - - -----__
Benefits , PHIL BATCHELOR, CLERK OF THE BOARD OF
Risk Management SUPERVISORS AND COUNTY ADMINISTRATOR
County Counsel
1382/7-83 BY- --� ,DEPUTY
The County proposes that labor and management each have 6 trustee seats for
a total of 12 seats on , the joint board of trustees. Reasons for 6
positions for each side' are , to have a manageable group size, conduct trust
meetings more efficiently, control charges to the 1st Choice Health Plan
for costs incurred in trustee training, and reduce costs to the County for
trustees' time off from work to conduct Trust business.
The Martin Segal Company, consultant to the Plan, surveyed 42 of its
private sector Taft-Hartley labor management trust clients and found the
following number of trustees on various trust funds:
No. of Trustees: 3/3 , 4/4 5/5 6/6 7/7 8/8 9/9 10/10 16/16
No. of Clients: 14 11 10 2 1 1 1 1 1
The trustees on the joint board will be composed of an even number of
positions, half of which will be employee organization trustees and half of
which will be employer °1Itrustees. The Trust will have bloc voting. Total
authorized votes of the employee organization trustees will be cast as a
single vote, as will the total authorized votes of the employer trustees.
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