Title
Human Resources Department recommending the Board:
1) Approve and authorize the Human Resources Department to accept a credit from UnitedHealthcare (UHC) in the amount of $15,120 for COVID-19 relief; and
2) Approve and authorize the Human Resources Department to disburse these funds to the retirees who were enrolled in UHC during the months of April and May 2020.
FUNDING: Health Fund.
Body
DISCUSSION / BACKGROUND
On May 7, UnitedHealth Group announced broad actions to directly support those affected by the COVID-19 pandemic by providing over $1.5 billion of support for its customers. This measure built upon the company’s ongoing efforts to address COVID-19 challenges by expanding coverage, supporting the health care system, protecting the health care work force and assisting those most affected by the pandemic.
To meet the needs of retirees, UnitedHealth Group’s UnitedHealthcare (UHC) plan has identified enrollees in the Group Retiree Medicare Advantage plan and is addressing access to care through the removal of any cost share barriers and increase the flexibility of virtual coverage. For premiums paid in the months of April and May 2020, the County of El Dorado has received a partial premium credit in the amount of $15,120 against the September health premiums. The credit has not been accepted pending approval by the Board.
Human Resources Department would like to disburse these funds directly to the UHC Group Retiree Medicare Advantage enrollees. It has been determined the best course for credit disbursement is to issue physical checks to those enrolled in UHC during April and May 2020 and who’s account balances have been paid through the May 2020 coverage period and are current. The credit will be distributed equally among the enrollees. This equates to $80.86 per enrollee.
ALTERNATIVES
As one alternative, the Board could choose not to approve acceptance of the credit and the enrollees would not receive COVID-19 financial assistance. As a second alternative, the Board could choose to accept the credit, but not apply the credit to April and May 2020 enrollees as recommended, and rather direct Human Resources to come up with different alternatives for use of the funds.
PRIOR BOARD ACTION
None
OTHER DEPARTMENT / AGENCY INVOLVEMENT
CAO, Human Resources
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
Funding from United Healthcare will be taken in the form of a credit on the December 2020 EBS invoice for health insurance premiums, and the funds will be dispursed to enrollees
CLERK OF THE BOARD FOLLOW UP ACTIONS
None.
STRATEGIC PLAN COMPONENT
Good Governance
CONTACT
Tameka Usher