Title
Human Resources Department, Risk Management Division, recommending the Board approve a Budget Transfer 29180 increasing revenues and appropriations in the Human Resources Department, Risk Management division budget by $500,000 to cover Fiscal Year 2008-2009 medical and pharmaceutical claims costs. (4/5 vote required)
FUNDING: Risk Management Special Revenue Fund.
Body
BUDGET SUMMARY: |
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Total Estimated Cost |
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$500,000 |
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|
|
Funding |
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Budgeted |
$ |
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New Funding |
$500,000 |
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Savings |
$ |
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Other |
$ |
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Total Funding Available |
$500,000 |
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Change To Net County Cost |
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$0 |
Fiscal Impact/Change to Net County Cost: Additional revenues from stop-loss reimbursements and employee and county premium contributions will be recognized and appropriations will be increased within the Risk Management special revenue fund. There is no impact to the County's Net County Cost.
Background/Reason for Recommendation: The County has three major health care programs for its employees, Blue Shield, which is self-funded, Kaiser and PacifiCare, which are fully insured. Estimates are made as to the costs and enrollment in the various plans each year. During FY 08/09, the health care costs in the self-funded programs have exceeded the actuarial projections. The actuarial projections were based on 1,116 employees participating in the health program. Actual enrollment is currently 1,164 employees. In addition, there have been several very large claims in the County's self-insured program. This results in increased claims costs, which are partially offset by reimbursements from the County's stop-loss insurance. This budget transfer recognizes additional revenues due to higher enrollment than expected and stop-loss reimbursements, and increases appropriations to cover the additional claims costs.
Action to be taken following Board approval: Additional revenues will be recognized and appropriations increased in order to fund the County's health plan for FY08/09.
Contact: Donna Mullens x6060
Concurrences: