Title
Human Resources, Risk Management Division, recommending the Board:
1) Authorize the Chair to sign Agreement 083-O1211 with UnitedHealthcare of California of California (also known as PacifiCare) in the estimated amount of $1,375,757 for the contract period July 1, 2011 through December 31, 2011 to provide group health benefits for County employees and retirees who elect this plan; and
2) Authorize the payment of premiums to Employee Benefits Specialists (EBS) the administrative intermediary for UnitedHealthcare.
Body
Background Reason for the Recommendation:
UnitedHealthcare (UHC), also known as PacifiCare, provides a health care option for County employees and early retirees who live within UHC's service area allowing access to care through the UC Davis, Sutter, and Catholic Health Care West systems.
Funding:
The UnitedHealthcare of California health insurance is funded through Risk Management's Internal Service Fund, employee payroll deductions, and retiree contributions.
BUDGET SUMMARY: |
|
|
Total Estimated Cost |
|
$1,375,757 |
|
|
|
Funding |
|
|
Budgeted |
$1,375,757 |
|
New Funding |
$ |
|
Savings |
$ |
|
Other |
$ |
|
Total Funding Available |
$1,375,757 |
|
Change To Net County Cost |
|
$0 |
Fiscal Impact/Change to Net County Cost:
Due to upward trend in claims, UHC increased its rates by 16.77%. This increased cost was included in the overall blended premium rates previously approved by the Board on 04/26/2011. UHC premium payments under this contract are estimated to total $1,375,375, but this total may vary based on actual enrollment. The cost is shared between the County, employees, and retirees.
Action to be taken following Board approval:
Board Chairperson to sign the UnitedHealthcare agreement and letter confirming payments to the administrative intermediary Employee Benefits Specialists (EBS).
Contact: Janet Parnell, x 6625