HomeMy WebLinkAboutMINUTES - 05191992 - 1.33 33
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Order on May 19, 1992 by the following vote:
AYES: Supervisors Powers , Fanden, Schroder, Torlakson, McPeak
NOES: None
ABSENT: None
ABSTAIN:None
SUBJECT:
Approval of Side Letter with )
CCCEA, Local No. 1 ) Resolution No. 92/ 328
BE IT RESOLVED that the Board 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 certify that this is a true and correct copy of
an action taken and entered on the minutes of th3
Board of supervisors on the date shown.
r
ATTESTED:
PHIL BATCHELOR, Jerk of the Board
of Supervisors and county Administrator
� .Deputy
Orig. Dept: Personnel Department
cc: Auditor-Controller/Payroll
Health Services Department
Local No. 1
RESOLUTION NO. 92/328
CONTRA COSTA 595 Center Avenue, Suite 100
�= HEALTH PL.L'1L�1 Martinez,California 945533
(510)313-6008
FAX(510)313-6058
Henry Clarke March 27, 1992
General Manager
Contra Costa County Employees Assn., Local 1
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.Contra Costa 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.
I. BASE SALARY: 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. COMMISSIONS:
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
F-Y)RDABLE ARE -PL-`USn ERVICE
Henry Clarke
Page 2
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. Commission Structures:
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-Cal Commission Structure - The Medi-Cal commission
structure is detailed in Attachment. 1. Accepted subscribers .are
those accepted and capitated by the State of California.
[b] Commercial and Medicare Commission Structure The
commercial and Medicare commission structure is detailed in
Attachment 2. Accepted subscribers are those accepted and
capitated by HCFA (SeniorHealth Program).
3. New 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 3
5. County Group:
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 Separation:
All Monthly enrollment commissions are 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 Group 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 4
3. A commission of$150 will be paid for each new group signed which has
3 to 12 employees.
E. Group Renewal Commission:
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. Team 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 Initiated 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.
I.'; MRMIP and AIM Program Enrollments:
MRMIP 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 Commissions:
Joint sales and shared commissions must be negotiated between interested
representatives prior to the formal close of a sale, and must 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 5 .
K. Emergency and Voluntary Disenrollments:
Any request by a subscriber or the State, or Federal Government for an
emergency disenrollment 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 II 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 Employment:
Employees shall not be eligible to receive Retention Commissions after
separation.
N. Salary 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. COMPENSATION UPON INITIAL APPOINTMENT: 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 TIME COMPENSATION: Monthly enrollment commissions shall be prorated
in accordance with the provisions of the Memorandum of Understanding.
Henry Clarke
page 6
V. COMPENSATION FOR PORTION OF MONTH: Monthly enrollment commissions
shall be prorated in accordance with the provisions of the Memorandum of
Understanding.
VI. PAY FOR WORK IN A DIFFERENT SALES CLASS: 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 HOURS OF WORK: The normal work week of employees in these
classifications is forty (40)hours. Actual daily work schedules will be arranged to meet
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 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. PERFORMANCE EVALUATION PROCEDURE: 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 SeniorHealth/Commercial 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 authorized absences, the minimum acceptable level of productivity will
be prorated on a daily basis:
B. Unacceptable 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. ADMINISTRATIVE SUPPORT: Management will continue its practice of lead
generating activities and will provide such clerical support as it deems necessary.
Henry Clarke
Page 7
X. RETIREMENT: Base salary plus commission will be counted as compensation for
retirement purposes.
X1. EFFECTIVE DATE: The effective date of the commission schedules contained 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,
f
Milt Camhi Lois Ellison Richard K. Heyne
Executive Director H.S.D. Personnel Officer Contra Costa County
Employee Relations Officer
gned) ,J'a�. (dated)
Hen . Clarke,
Ge +gyral Manager, Local 1
` 1 'I ' ned) j: (dated)
Billie Jo �3J' son, Ph.N.
Unit President, Local 1
Incentive Plan Attachment 1
Management Proposals/Page One
Medi-Cal Commission Structure (Revised February. 1
Subscribers
Current Accepted Proposed
Level ' Commission By State Commission Total
Below 77
[0] -0- Enrollees -0- Base Salary
77 $405 . $405
78 $25 . $430
79 .'$25 $455
[1] $500 [80] [$45] [$500]
81 r $15 $515
82 r: $15 $530
83 $25 $555
84 `' $25 $580
[2] $625 [85] [$45] [$625]
86 $.15 $640
87 :' $15 $655
88 $25 : $680
89 $25 $705
[3] $750 [90] [$45] [$750]
91 $15 $765
92 $15 $780
93 $25 $805
94 $25 $830
[4] $875 [95] . . [$45] [$8751
96 $15 $890
97 $15 $905
98 $25 $930
99 $25 $955
[5] $1,000 [100]' [$45] [$1,000]
101 $15 $1,015
102 $15 $1,030
103 $25 $1,055
104 $25 $100
•r
Incentive Plan
Management Proposals/Page Two
Medi-Cal Commission Structure (Revised FebruarX, 1992)
Subscribers
Current Accepted Proposed
Level Commission By State Commission Total
[6] $1,125 [105] [$45] [$1,125]
106 $15 $11140
107 $15 $055
108 $25 $1,180
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] [$1,375]
116 $15 $1,390
117 " $15 $1,405
118 $25 $1,430
119 $25 $1,455
[9] $1,500 [120] [$45] [$1,500]
121 $15 $1,515
122 $15 $1,530
123 $25 $1,555
124 $25 $1,580
[10] $1,625 [125] [$45] [$1,625]
126 $15 $1,640
127 $15 $1,655
128 $25 $1,680
129 $25 $1,705
Incentive Plan
.Management Proposals/Page Three
Medi-Cal Commission Structure (Revised February. 19921
Subscribers
Current Accepted Proposed
Level Commission By State Commission Total
[11] $1,750 [130] [$45] [$1,750]
131 $15 $1,765
132 $15 $11780
133 $25 $1,805
134 $25 $1,830
[12] $1,875 [135] [$45] [$1,875]
136 $15 $1,890
137 $15 $1,905
138 $25 $19930
139 $25 $1,955
[13] $2,000 [140] [$45] [$2,000]
141 $15 $2,015
142 $15 $2,030
143 - $25 $2,055
144 $25 $2,080
[14] $2,125 [145] [$45] [$2,125]
146 $15 $2,140
147 $15 $21155
148 $25 $2,180
149 $25 $22205
[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 a
Management Proposals/Page One
Commercial and Medicare Commission Structure (Revised February. 19921
Current Subscribers Proposed
Level Commission Accepted* Commission Total
Below 27
[0] Enrollees Base Salary
27 $290 $290
28 $30 $320
29 $30 $350
[1] $500 [30] [$150] [$500]
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] [$1,000]
41 $20 $1,020
42 $20 $1,040
43 $30 $1,070
44 $30 $1,100
[4] $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 Two
Commercial and Medicare Commission Structure (Revised February. 1992)
Current Subscribers Proposed
Level Commission Accepted* Commission Total
[5] $1500 [50] .[$150] [$1,500]
51 $15 $19515
52 $15 $1530
53 $15 $1,545
54 $15 $11560
55 $15 $1,575
56 $20 $1,595
57 $20 $19615
58 $20 $1,635
59 $20 $11655
[6] $1,750 [60] [$95] [$1,750]
61 $15 $1,765
62 $15 $1,780
63 $15 $11795
64 $15 $19810
65 $15 $12825
66 $20 . $1,845
67 $20 $1,865
68 $20 $19885
69 $20 $1,905
[7] $200 [70] [$95] [$2,000]
*Any combination of the values for subscribers, non-subscriber members, and conversions
The same payout pattern ($15, $15, $159 $15, $15, $20, $20, $20, $20, $95) will be earned above level 7
for each subscriber accepted
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