Title
Human Resources Department, Risk Management Division, recommending Chairman be authorized Amendment 1 to Agreement with Blue Shield of California in the amount of $3,100 to provide for administration fees for Medicare Part D participants and increasing the stop loss attachment point from the previous $150,000 to $175,000.
RECOMMENDED ACTION: Approve.
Body
BUDGET SUMMARY:
Total Estimated Cost $3,100
Funding
Budgeted $3,100
New Funding $
Savings $
Other $
Total Funding Available $ $3,100
Change To Net County Cost $0
Fiscal Impact/Change to Net County Cost:There is no fiscal impact because the FY 07/08 Health program budget included the additional $3,100 cost for Medicare Part D participants, discussed in this amendment.
Background:/Reason for Recommendation:: Blue Shield inadvertently left out of the FY 07/08 contract, increased administration costs for Medicare Part D participants. The Non-Medicare Part D participants cost is $44.92 per employee per month; this was approved in the contract that was before your Board on June 19. The additional $2.56 charge for Medicare Part D participants, for a total of $47.48 per retiree per month, will cover the extra cost of administering the pharmaceutical coverage. We estimate this cost to be $3,100. Finally, our Benefits Consultants, AON, has recommended that our excess stop loss coverage attachment point be increased to $175,000, from $150,000.
Pursuant to Board of Supervisors Policy C-17, Sections 7.5 and 7.10, the Purchasing agent concurs that it is appropriate to contract with Blue Shield of California for the purpose of providing health benefits for employees of El Dorado County without engaging in a competitive selection process. The County currently contracts with three (3) of the largest medical service providers that offer the broadest range of medical coverage and options available to County employees. The Board of Sup...
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