County of El Dorado - File #: 11-1095

• File #: 11-1095
• Version: 2
• Type: Agenda Item
• Status: Continued
• File created: 9/19/2011
• In control: Board of Supervisors
• On agenda: 10/11/2011
• Title: Chief Administrative Office, Risk Management Division, recommending the Board: 1) Approve the Health Plan Published Rates based on adopted and proposed MOUs effective January 1, 2012 through December 31, 2012, charged to employees effective 2012 Pay Period 2; 2) Approve the increase in the health vendor rates and projected funding; 3) Implement Medco’s Preferred Generic Guideline and Preferred Drug Step Therapy (PDST) programs; and 4) Authorize Kim Kerr, Assistant Chief Administrative Officer, or designee to sign health carrier contracts subject to County Counsel’s approval. (Cont'd 10/4/11, Item 4) FUNDING: Internal Service Fund - Risk Management Health Fund.

Date	Ver.	Action By	Action	Result
10/11/2011	2	Board of Supervisors	Approve and Continue	Pass
10/4/2011	1	Board of Supervisors	Continued	Pass

Title
Chief Administrative Office, Risk Management Division, recommending the Board:
1) Approve the Health Plan Published Rates based on adopted and proposed MOUs effective January 1, 2012 through December 31, 2012, charged to employees effective 2012 Pay Period 2;
2) Approve the increase in the health vendor rates and projected funding;
3) Implement Medco’s Preferred Generic Guideline and Preferred Drug Step Therapy (PDST) programs; and
4) Authorize Kim Kerr, Assistant Chief Administrative Officer, or designee to sign health carrier contracts subject to County Counsel’s approval. (Cont'd 10/4/11, Item 4)

FUNDING: Internal Service Fund - Risk Management Health Fund.
Body
Executive Summary: To transition to a calendar year program, the County negotiated tentative rates with the County's health carriers effective January 1, 2012. The projected health benefit cost is increasing by 6% or $1.6 million ($1,594,800). The total projected cost is approximately $28.6 million. The County portion is approximately $20 million and the employee’s portion is $8.6 million.

The retiree contribution cap is remaining as $1,725,159 for the rest of the Fiscal Year. The retiree contribution cap is determined by using the best estimate of the Total Payroll Cost for FY 2011-12 as agreed to in the Side Letters with the bargaining units in June 2011. Staff will monitor the County's retiree contribution to ensure the cap is not exceeded.

Fiscal Impact/Change to Net County Cost: No change to Net County Cost. Cost variance between Alliant’s presentation and staff projections is due to changes or corrections in enrollment data between July and September 2011. The projected health benefit cost for the 2012 Calendar Year is $28,566,000, an increase $1,594,800 or 6% from the projected 2011 Calendar Year cost of $26,971,200. The County will contribute approximately $19,912,387 and $8,653,613 will be funded by the department budgets, employee payroll deductions, retiree contributions...