Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Rocio Kiryczun, 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, 2019 through December 31, 2019, with the aggregate amount not to exceed $128 million.
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BACKGROUND:
The County of San Mateo offers six medical plans for active employees and early retires. By offering choices, employees can determine the best plans for themselves and their families throughout their career. Approximately 5,118 of 5,746 active benefit eligible County employees (or 89%) participate in one of the County's medical plans. A total of 65% of enrollees are with Kaiser, and 35% are with Blue Shield. Approximately 2,227 of 4,678 County retirees (or 47.6%) participate in one of the County's retiree medical plans. Fifty-two percent (52%) of retired enrollees on a County health plan are with Kaiser, 45.5% with Blue Shield, and 2.5% 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, particularly health insurance, new contracts are typically issued 30-60 days after the effective date, and retroactive execution is industry standard.
In 2017, the Count...
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