Title
Human Resources Department, Risk Management Division, recommending the Chairman be authorized to sign Agreement 177-S0910 with Vision Service Plan (VSP) in an amount not to exceed $570,000 for the term July 1, 2008 through June 30, 2011 for provision of vision benefits to County employees. (Risk Management Internal Service Fund)
Body
BUDGET SUMMARY:
Total Estimated Cost $570,000
Funding
Budgeted $570,000
New Funding $
Savings $
Other $
Total Funding Available $
Change To Net County Cost $570,000
Fiscal Impact/Change to Net County Cost: This agreement reflects a 10% increase in administrative service fees for 36 months. These expenditures are budgeted within the Risk Management internal service fund, health benefits sub-fund. Revenue is provided by Board-approved internal charges along with charges to retirees and outside agencies on behalf of participants in the County's self-funded vision program. This contract is for a three-year term with an annual estimated cost of $190,000 and a total estimated cost of $570,000.
Reason for Recommendation: VSP’s services include both claims administration and VSP's network of Preferred Member Doctors. This agreement approves a compensation adjustment from $1.31 per employee per month (PEPM) to $1.44 PEPM with a three-year rate guarantee. During the FY 08/09 term of this contract we anticipate approximately $170,000 will be paid out on our behalf by VSP in self-insured claims, whereas the administrative services provided by this contract will cost approximately $20,000.
The Agreement is retroactive due to a misinterpretation of the not-to-exceed amount of the contract. Staff believed that the Agreement was within the Purchasing Agent's signature authority and processed the agreement under that assumption. As a result, the contract signature block had to be revised and re-routed to the vendor and scheduled for Board approval.
Pursuant...
Click here for full text