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Human Resources Department recommending the Board:
1) Accept rebate funds from Kaiser and Blue Shield and utilize such funding for the County of El Dorado’s Employee Health and Wellness Program; funds will be only be used for employee health and wellness activities;
2) Authorize the Department of Human Resources to continue to request the County of El Dorado’s allocation of Wellness Funds as available each year; and
3) Authorize the acceptance of future year’s rebate funds for use by the County of El Dorado’s Employee Health and Wellness Program.
FUNDING: Health Benefit Providers (Kaiser and Blue Shield).
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The Medical Loss Ratio rebate provisions of the Affordable Care Act require health insurers to pay rebates to policyholders (employers with 50 or more full-time equivalent employees) if the insurer fails to spend at least 85% of the total premium revenue on medical claims and health care quality improvement activities, such as employee health and wellness initiatives. According to the rebate provisions, the rebate must be used for employee health and wellness programs.
On July 23, 2019 with Legistar item 19-1079, the Board approved the acceptance of rebate funds totaling $5,380. A total of $1,657 of that rebate was used in FY 2019/20 on the Health and Wellness Fairs held in September 2019 as well as other employee health and wellness initiatives. The Department of Human Resources tracks the expenditures and ensures the funds are used only for employee health and wellness initiatives. Any unspent funds from each fiscal year remain in the risk benefit fund and carry over to the next fiscal year to be used for employee health and wellness programs.
On behalf of the County of El Dorado (County), the Department of Human Resources (HR) requested its allocation of Wellness Funds from California State Association of Counties (CSAC) Excess Insurance Authority (EIA) in June 2020. In July 2020, the County received a total of $4,870 ($3,825 from Kaiser...
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