Title
Human Resources Department, Risk Management Division, recommending the Board authorize the Chair to sign Agreement 081-S111 with Kaiser Foundation Health Plan, Inc. in the amount of $5,474,481 for the term July 1, 2010 through June 30, 2011 to provide group health benefits for County employees and retirees who elect this plan.
FUNDING: Risk Management Special Revenue fund and Employee Payroll Deductions.
Body
BUDGET SUMMARY: |
|
|
Total Estimated Cost |
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$5,474,481 |
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|
|
Funding |
|
|
Budgeted |
$5,474,481 |
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New Funding |
$ |
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Savings |
$ |
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Other |
$ |
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Total Funding Available |
$5,474,481 |
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Change To Net County Cost |
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$0 |
Fiscal Impact/Change to Net County Cost: The overall 4.6% increase to rates included in this contract was attributed to an increase in utilization of the group as well as an increase to the total claims cost per member. The increased cost has been included in the overall blended premium rates already approved by the Board. Kaiser premium payments through the Risk Management Fund for current employees and retirees under this contract are estimated to total $5.48 million by the end of the 10-11 fiscal year and contract period. This cost is shared between the County and employees.
Background:
Reason for Recommendation: Kaiser provides expanded provider choice to employees, allowing them to access doctors and medical facilities not available through Blue Shield or PacifiCare. This agreement also provides the only Medicare Advantage (Part C) program, Senior Advantage, available to the County's Medicare-enrolled employees and retirees. Kaiser has been selected by approximately 475 County employees and retirees. This agreement continues the live or work rule, allowing South County residents and those who live in Pollock Pines and nearby areas to enroll, provided they work in Placerville or to the west.
Action to be taken following Board approval: The Board Chairperson will sign the agreement, and our business relationship with Kaiser Permanente will continue for another 12 month period.
Contact: Donna Mullens x6060
Concurrences: County Counsel, Risk Management, Purchasing