Title
Human Resources Department recommending the Board:
1) Approve the 2022 Operating Engineers, Local 3 Health Trust health plan rate card; and
2) Approve amendments to the adopted 2022 health plan rate cards (Attachment A) based on the cost sharing of health premiums in the current Memoranda of Understanding with all bargaining units, the Salary and Benefits Resolution for unrepresented employees and in accordance with the Patient Protection and Affordable Care Act
FUNDING: Countywide cost, shared between the County departments (General Fund and Non-General Fund) and employees.
Body
DISCUSSION / BACKGROUND
OE3 Health Trust Rate Card
The Operating Engineers, Local 3 (OE3) labor organization offers two health plans (Anthem Blue Cross “Plan A” and Kaiser “Plan B”) to their members in the Trades and Crafts (TC) and Corrections (CR) bargaining units, in addition to what is offered by the County. The County contributes to those plans equal to what is contributed to the comparable County-sponsored health plans.
On August 31, 2021, the Human Resources Department brought forth to the Board the 2022 health plan rates, with the notation that the Human Resources Department would return to the Board once the OE3 Health Trust health rates were available for Board consideration.
The OE3 Health Trust has provided the County with their plan rates; the County then applied the County contribution per the applicable Memoranda of Understanding (MOUs) to create the published rate cards for employees.
While the County does not have any responsibility for the OE3 Health Trust health plan or programs, the County does have a responsibility to the Employer and Employee contribution for the applicable OE3 Health Trust plans based on the MOUs with the OE3 represented bargaining units.
The Human Resources Department is requesting the Board review and approve the attached 2022 OE3 Health Trust health rate card for the two plans available to our employees.
County Health Plan Rate Cards
When Human Resources brought forth to the Board the 2022 health plan rates, it was with the understanding that for our retirees, PRISM Health, the Joint Powers Authority through which the County receives the majority of our health and ancillary benefit plans, would offer a Kaiser Senior Advantage (Medicare Supplement) account-based deductible plan in 2022. We have since received information that such a plan will not be available.
In addition, subsequent to the adoption of the 2022 health plan rates, a clerical error was discovered on the Health plan rate card for Confidential (CO), Unrepresented Management (UM), Elected (EL), and Department Heads (UD). In 2022, the card was reformatted so that the Blue Shield PPO Standard (200) plan was listed first, with the Blue Shield ABHP Low (1400) plan listed second. While the premium rates were correctly reflected, the employer contribution was reversed for the two plans.
Though the Board granted Grant Human Resources the authority to correct any minor clerical errors or adjustments to the approved health plan rate cards for the 2022 health benefits plan year as needed, for full transparency, Human Resources is presenting the amended retiree and CO/UM/EL/UD health plan rate cards for Board adoption.
ALTERNATIVES
Because the County offers the two OE3 Trust health plans and makes County Contributions pursuant to the terms of the negotiated MOUs with OE3 represented bargaining units, there is no recommended alternative.
Further, because the Board adopted the 2022 health plan rates, and the changes to the retiree and CO/UM/EL/UD health plan rate cards are clerical adjustments, there is no recommended alternative.
PRIOR BOARD ACTION
On August 31, 2021 (Legistar 21-1071), the Board approved 2022 Plan Year rate cards and was informed that OE3 Trust rate cards would be brought to the Board when the rates were finalized by OE3.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
None
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
Approving the OE3 Health Trust health rates does not change costs as the employer contribution is equal to what is contributed to the comparable County-sponsored health plans.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
Good Governance
CONTACT
Joseph Carruesco, Director of Human Resources