File #: 21-0460    Version: 1
Type: Agenda Item Status: Approved
File created: 3/15/2021 In control: Board of Supervisors
On agenda: 4/6/2021 Final action: 4/6/2021
Title: Human Resources Department, Risk Management Division, recommending the Board approve and authorize payment of Invoice 21900075 in the amount of $1,531.71, a penalty charged by Prism for the delinquent payment of the Medical Malpractice Insurance premium for the period 10/1/20 through 10/1/21. FUNDING: Liability Fund.
Attachments: 1. A - Prism Memo, 2. B - Invoice 21600023 Medical Malpractice Invoice, 3. C - Invoice 210900075 Delinquent Invoice
Related files: 21-0069, 20-0851, 20-1032, 20-1579, 21-1065
Title
Human Resources Department, Risk Management Division, recommending the Board approve and authorize payment of Invoice 21900075 in the amount of $1,531.71, a penalty charged by Prism for the delinquent payment of the Medical Malpractice Insurance premium for the period 10/1/20 through 10/1/21.

FUNDING: Liability Fund.
Body
DISCUSSION / BACKGROUND
On 7/14/20 the Human Resources Risk Management Division received approval from the Board (Legistar 20-0851) to pay the Risk Management Insurance premiums and coverages to Prism. This included the medical malpractice premium.

Since the release of the premium estimates presented to the Board in July, there was a significant increase in the actual premium for medical malpractice. As such, on
November 9, 2020 questions arose regarding the large variation between the estimate and the actual invoiced premium. The estimated premium as presented to the Board was $237,481. The actual premium was $265,215. An increase of 12%. The Human Resources Risk Management Division took this invoice back to the board on 12/2/20 (Legistar 20-1579) and received approval to pay the increased premium amount.

On November 18, 2020 Prism informed County staff that payment was delinquent and a late fee could be assessed. In an effort to avoid the late fee Risk staff wrote to the executive committee at Prism asking for relief. On January 4, 2020 the County was notified by Prism that relief was not granted and the County was presented with a delinquent invoice in the amount of $1,531.71.

In the future, the Human Resources Risk Management Division will ensure the wording in the Board item is consistent with the estimated premium increase for both the premium and administrative fee.

This was brought to the Board on January 26,2021 (Legistar 21-0069) and continued for further discussion.

ALTERNATIVES
The Board could not approve this payment and notify Prism; however, non-payment of invoices may result in cancellation from the program.
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