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Human Resources Department recommending the Board accept rebate funds from Kaiser and Blue Shield and utilize such funding for the County of El Dorado’s new Employee Health and Wellness Program; funds will be only be used for health and wellness activities consistent with employee feedback.
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 behalf of the County of El Dorado (County), the Department of Human Resources (HR) requested its allocation of Wellness Funds from the California State Association of Counties (CSAC) Excess Insurance Authority (EIA) on March 26, 2019. On June 7, 2019, the County received a total of $5,380 ($4,330.00 from Kaiser and $1,050.00 from Blue Shield of California). It is anticipated that the County will receive a similar allocation from the carriers in future years and intends to make a request from the County to match these funds in subsequent years to build upon and enhance the Employee Health and Wellness Program.
Implementing a Health and Wellness Program will not yield quantifiable data to show a return on investment. However, best practice data suggests that the County will see benefits thorough the improvement of employees’ health and well-being. Additionally, based on the data, the County can expect to see improved productivity, possible reductions of health care costs, and reduced health risks. This effort also provides another opportunity to show the employees that the County cares about them and their overall well-being.
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