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Human Resources Department, Risk Management Division, recommending the Board approve Fiscal Year 2009-2010 "Negotiated" rates for the County's Health Benefit Program for Unrepresented Employees, effective July 1, 2009.
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Fiscal Impact: The approval of the negotiated rates does not have a direct fiscal impact. The costs of the health benefits programs are budgeted in the Risk Management special revenue fund and are based on the published rates already approved by the Board.
Background: Annually, Human Resources staff work with AON, the County's health benefit consultants, to analyze the health benefits program and determine what amounts will be needed to appropriately fund the County health benefits program. AON estimates that costs for the health benefits program will increase by 8 percent overall in FY 2009-10. The Board has previously approved the "Published" health benefits rates. Human Resources has also developed "Negotiated" health benefits rates which are slightly lower than the "Published" rates and which will apply to several unions, of which these rates have been noted in their recently-approved MOU's. We are requesting these same rates for Unrepresented Employees. Total costs to the County for total "Published" and "Negotiated" health benefits are approximately $25 million for the 09/10 FY. These amounts are funded through health premium payments from department budgets as well as employee, retiree, affiliated employer, and cobra participating members.
Action to be taken following Board approval: Human Resources will post on their website "Negotiated" rates and contributions required for FY 2009-10 for Unrepresented Employees.
Contact: Lisa Hoaas X 5576
Concurrences: HR, CAO