Title
Human Resources, Risk Management Division, recommending the Board of Supervisors:
1) Authorize the Chair to sign Agreement 076-O1211 with Kaiser Foundation, Health Plan, Inc. in the estimated amount of $3,158,312 for the period July 1, 2011 through December 31, 2011; and
2) Authorize the payment of premiums to Employee Benefits Specialists (EBS) the administrative billing intermediary for Kaiser Permanente.
Background Reason for the 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 includes Kaiser Senior Advantage with Part D that is available to the County's Medicare-enrolled retirees. This agreement includes a live or work rule, allowing County employees or residents who work or live in Kaiser’s service area as eligible to participate.
Funding:
Kaiser health insurance is funded through Risk Management’s Internal Service Fund, employee payroll deductions, and retiree contributions.
BUDGET SUMMARY:
Total Estimated Cost $3,158,312
Funding
Budgeted $3,158,312
New Funding $
Savings $
Other $
Total Funding Available $3,158,312
Change To Net County Cost $0
Fiscal Impact/Change to Net County Cost:
Due to upward trend in claims, Kaiser increased its rates by 6.01% for Actives and Early Retirees and by 1.29% for Retirees 65+ Senior Advantage.
The increased cost was included in the overall blended premium rates previously approved by the Board on 04/26/2011. Kaiser premium payments under this contract are estimated to total $3,158,312, but this total may vary based on actual enrollment. The cost is shared between the County and the employees.
Action to be taken following Board approval:
Board Chairperson to sign the Kaiser agreement and letter confirming payments to the administrative intermediary Employee Benefits...
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