Title
Human Resources Department, Risk Management Division, recommending the Board;
1) Approve corrections to Operating Engineers Local 3 Health Trust Fund Kaiser Plan rate effective retroactively to January 10, 2015, hold the employees harmless for the under-collection of charges, and
2) Authorize Risk Management to implement a special open enrollment period to provide the option for employees in the OE3 Kaiser Health plan to move to the County sponsored Kaiser Health plan or the OE3 Health Trust Plan A.
FUNDING: Various Funds.
Body
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BUDGET SUMMARY: |
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Total Estimated Cost…………… |
$17,837 |
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Budget - Current FY…………… |
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Budget - Future FY……………… |
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New Funding……………………. |
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Savings………………………… |
$17,837 |
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Other…………………………… |
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Total Funding Available………… |
$17,837 |
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Change To Net County Cost…… |
$0 |
Fiscal Impact/Change to Net County Cost
No change to Net County Cost. The associated costs to each department are minimal and will be absorbed in their FY 2014-15 Adopted Budgets.
Background:
The Board of Supervisors approved the 2015 Operating Engineers Local 3 (OE3) Health Trust Fund plans rates on October 14, 2014. On October 16, 2014, OE3 provided updated rates that were never approved by the Board prior to the implementation of the new coverage year (January 1, 2015). Since the correct rates were not approved, it has resulted in the under-collection of charges in the amount of $17,837 which has been absorbed in departmental budgets. Affected departments are CAO-Facilities, Sheriff, Probation, Community Development Agency, and HHSA-Public Health.
Recommendation:
Human Resources, Risk Management Division, is requesting the authority to hold a special open enrollment for the affected 81 employees to have the option to enroll in the County’s Kaiser Plan or the OE3 Health Trust Plan A since both of these plans rates are less costly for the employee than the corrected OE3 Kaiser benefit rates. If an employee elects to enroll in the County’s Kaiser Plan or OE3 Health Trust Plan A, the benefits would go into effect March 1, 2015.
Risk Management will implement a special open enrollment for the affected employees giving them the option to switch plans.
Clerk of the Board Follow Up Actions
None
Contact
Bobbi Bennett, Human Resources Manager