Title
Chief Administrative Office, Risk Management Division, recommending the Board approve the Medical Malpractice Extended Participation Agreement through the California State Association of Counties - Excess Insurance Authority (CSAC-EIA) committing the County to the program for two years, beginning October 1, 2013 through October 1, 2015, and authorize the Assistant Chief Administrative Officer to sign the agreement upon approval by County Counsel.
FUNDING: Risk Management Liability Insurance Fund, Medical Malpractice Insurance Program is funded by charges to the related departments including Public Health, Mental Health, Animal Control, CSA 7 Ambulance Services, Social Services and Community Services.
Body
BUDGET SUMMARY: |
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Total Estimated Cost
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$89,538.00 |
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Budgeted
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$89,538.00 |
New Funding
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Savings
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Other
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Total Funding Available
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$89,538.00 |
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Change To Net County Cost
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0 |
Fiscal Impact/Change to Net County Cost
Funding for this agreement is included in the FY 2013-2014 Risk Management budget and is funded by charges to the related departments including Public Health, Mental Health, Animal Control, CSA 7 Ambulance Services, Social Services and Community Services. By extending the Participation Agreement, the County will receive a premium reduction of $1,008.00 for the FY 2013-2014 Medical Malpractice Program. The FY 2014-2015 premium will be determined in October 2014.
Background
El Dorado County has been a CSAC-EIA participant for 21 years. On July 16, 2013 (Item #14, Legistar File 13-0817), the Board approved the County's participation in CSAC-EIA for FY 2013-2014. At that time, the County's estimated cost for the Medical Malpractice program was $94,000. On October 1, 2013, CSAC-EIA successfully renewed the Medical Malpractice program with Lexington Insurance Company. The County's FY 2013-2014 premium with a two-year commitment is $89,538. Similar to last year, members of the Medical Malpractice Program are being asked to provide a commitment to remain in the program for a two-year period, October 1, 2013 to October 1, 2015, in exchange for a premium reduction. This commitment allows for continued member participation and stability in the program. The extended Participation Agreement must be executed and returned to CSAC-EIA no later than December 31, 2013. In 2008, and again in 2012, this same request was made of the members in the Medical Malpractice Program and both times 100% of the members, including El Dorado County, signed the Extended Agreement.
As a result of negotiating a new two-year commitment by the members, the Medical Malpractice Program's premium increase for 2013-2014 was less than 1% and the 2014-2015 renewal not-to-exceed 10%. Under the new two-year commitment, El Dorado County's cost for FY 2013-2014 is $89,538 reflecting a cost savings of $1,008. The premium for FY 2013-2014 with no commitment is $90,546 and an unknown increase for FY 2014-2015.
Reason for Recommendation
Approval of the Extended Participation Agreement allows El Dorado County to receive discounted premium in the Medical Malpractice Program through the CSAC-EIA for the next two program years (2013-2015).
Action(s) to be taken following Board approval
Upon approval by County Counsel, Assistant CAO will sign the agreement and forward to CSAC-EIA prior to December 31, 2013.
Contact
Sherri Adams, Principal Risk Management Analyst