Title
Human Resources Department, Risk Management Division, recommending the Board approve and authorize the Chair to sign Agreement 146-S1111 and Amendment I with Vision Service Plan (VSP) in the amount not to exceed $375,000 for the term July 1, 2010 through July 1, 2012 for the provision of vision benefits to County employees.
FUNDING: Risk Management Internal Service Fund.
Body
BUDGET SUMMARY: |
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Total Estimated Cost |
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$375,000 |
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|
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Funding |
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Budgeted |
$375,000 |
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New Funding |
$ |
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Savings |
$ |
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Other |
$ |
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Total Funding Available |
$375,000 |
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Change To Net County Cost |
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$0 |
Fiscal Impact/Change to Net County Cost:
This agreement reflects a 3% decrease in administrative service fees from the previous fiscal year. The administration fees and claims costs are budgeted within Risk Management's internal service fund, health benefits sub-fund. Revenue is provided by Board approved internal charges along with charges to retirees and outside agencies on behalf of participants in the County's self funded vision benefits program. This agreement is a two-year term with a total estimated cost of $ 375,000.
Reason for Recommendation and Background:
The County's health care consultant, Alliant Insurances Services, negotiated a reduction in the administration fee from $ 1.44 to $ 1.40 per employee per month (PEPM) with a two year guarantee. Vision Service Plan services include claims administration and a network of Preferred Member Doctors to provide vision services to County employees. This agreement is retroactive due to the fact that the contract documents were not received for County review until late June, and the signed final contracts were not received from the vendor until October.
Action to be taken following Board approval:
VSP to continue providing vision services and claims administration for Blue Shield and PacifiCare members.
Contact: Janet Parnell, x 6625
Concurrences:
County Counsel