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Human Resources Department, Risk Management Division, recommending the Board authorize the Chair to sign Agreement 162-S1110 with American Specialty Health Insurance Company in the amount of $20,000 for the term July 1, 2010 through June 30, 2011 for the provision of chiropractic service to PacifiCare enrollees.
FUNDING: Risk Management Internal Service Fund.
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Fiscal Impact/Change to Net County Cost:
No change to Net County Cost. Enrollment in the American Specialty Health Insurance Company (Ashic) decreased because Blue Shield members now obtain their chiropractic services through Blue Shield. The decrease in enrollment increased the Ashic rates by 25%; however, the change will result in a total savings of 12 % due to the savings associated with migrating the Blue Shield enrollees to Blue Shield's chiropractic network.
Funding for this contract is included in the FY 2010-11 Risk Management internal service fund budget, health benefits sub-fund.
Background and Reason for Recommendation:
American Specialty Health Insurance Company is the provider of chiropractic services for County employees and their dependents who receive health benefits through Pacificare. The contract is retroactive to July 1, 2010 because negotiations with health benefits providers typically do not conclude until late spring. Contracts often are not received until late June, early July, or even later. This agreement was received in August.
Action to be taken following Board approval:
The Board Clerk will forward the executed agreement to Risk Management for distribution and administration.
Contact: Janet Parnell, x 6225