Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Donna Vaillancourt, Human Resources Director
Lisa Okada, Benefits Manager
Subject: Request for approval of contract renewals with Health Insurance Providers
RECOMMENDATION:
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Adopt a resolution authorizing the Human Resources Director to retroactively execute renewal agreements with Kaiser Permanente, United Health Care, and Blue Shield of California, for the provision of health coverage for County employees, retirees, and their dependents for the term of January 1, 2018 through December 31, 2018 with the aggregate amount not to exceed $123.5 million.
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BACKGROUND:
Approximately 5,123 of 5,684 active benefit-eligible County employees (90 percent) participate in one of the County's medical plans. Among participating employees, 63 percent are with Kaiser, and 37 percent are with Blue Shield. Approximately 2,239 of 4,526 County retirees (49.5 percent) participate in one of the County's retiree medical plans. Among retired enrollees on County health plans, 50.5 percent are with Kaiser, 47 percent with Blue Shield, and 2.5 percent with Secure Horizons, a plan with United Health Care.
DISCUSSION:
Agreements with Kaiser, Blue Shield, and United Health Care will be reviewed by the County's benefits broker and the County Counsel's Office. Authorization for the Human Resources Director to execute such renewal agreements retroactively upon approval by the broker and the County Counsel's Office is being recommended. Due to the uniqueness of "open enrollment periods" related to employer-sponsored benefits-health insurance, in particular-new contracts are typically issued 30 to 60 days after the effective date, and retroactive execution is industry standard.
In 2017, the County's labor-management Benefits Committee recently completed the request for proposals (RFP) for the medical plans currently provided by Blue Shield of California and U...
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