Title
Human Resources Department, Risk Management Division, recommending Chairman be authorized to sign Agreement 108-S0911 with Pacificare of California for the term July 1, 2008 through June 30, 2009 to provide group health benefits for County employees who elect this plan.
RECOMMENDED ACTION: Approve.
Body
BUDGET SUMMARY: |
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|
Total Estimated Cost |
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$1,856,000 |
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|
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Funding |
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Budgeted |
$1,856,000 |
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New Funding |
$ |
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Savings |
$ |
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Other |
$ |
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Total Funding Available |
$1,856,000 |
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Change To Net County Cost |
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$0 |
Fiscal Impact/Change to Net County Cost:
The overall 6.1% increase to rates included in this contract was anticipated, and because the County chose to minimize the financial impact to employees and retirees by funding the increase internally, the rate increase is not included within the overall "blended" rates approved by the Board. PacifiCare premium payments from the Risk Management Fund for current employees and retirees under this contract are estimated to total $1.856 million by the end of the 08-09 fiscal year and contract period.
Reason for Recommendation:
This HMO provides a health care option for the County employees who live within PacifiCare's Service Area allowing access to care through the U.C. Davis, Sutter, and Catholic Health Care West systems. Approximately 180 employees and their families are currently enrolled. The increase of 6.1% compares favorably to last year's increase of 7.1%.
Pursuant to Board of Supervisors Policy C-17, Sections 7.5 and 7.10, the Purchasing Agent concurs that it is appropriate to contract with PacifiCare of California for the purpose of providing health benefits for employees of El Dorado County without engaging in a competitive selection process. The County currently contracts with three (3) of the largest medical service providers that offer the broadest range of medical coverage and options available to County employees. The Board of Supervisors has approved the continued independent contract services of Aon Consulting, Inc. for the outside review of employee benefits available under existing medical service providers. Aon Consulting, Inc. reviews the current and proposed rates to ensure competitiveness and appropriateness within the specific medical industry, and provides a review and analysis for service levels provided with each medical service provider. The County Purchasing Agent concurs that the continued contract with PacifiCare of California is in accordance with Board of Supervisors Policy C-17.
Action to be taken following Board approval:
The Board Chairperson will sign the agreement, and our business relationship with PacifiCare will continue for up to another year.
Contact:
Larry Costello, x6625
Concurrences:
County Counsel, Risk Management, Purchasing