Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Rocio Kiryczun, Human Resources Director
Kim Pearson, Benefits Manager
Subject: Vision Plan Agreement with Vision Service Plan
RECOMMENDATION:
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Adopt a resolution authorizing the execution of an agreement with Vision Service Plan (VSP) to provide vision insurance to County of San Mateo employees and retirees for the period of January 1, 2022 through December 31, 2024, with the aggregate amount not to exceed $4,507,053.
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BACKGROUND:
The County provides vision insurance to its employees, retirees and their dependents. The employee plan is a self-insured plan in which the County pays claims costs, and also pays an administrator to adjudicate claims and administer the claim payments. The retiree plan is a fully-insured plan in which retirees pay a premium to cover the cost of claims and administration.
For employees, a "core" vision plan is offered at the County's expense, along with a richer "buy-up" plan in which the incremental additional cost is borne by the employee. For retirees, a fully voluntary vision plan that approximates the core plan's design is available at retirees' expense. The core plan for employees has 4,587 enrollees, the buy-up plan has 1,562 enrollees, and the retiree plan has 800 enrollees. Including dependents, 14,932 lives are served by the vision program.
The current provider for the vision program is Vision Service Plan (VSP). VSP has been the County's plan provider for over 30 years.
The current agreement with VSP expires on December 31, 2021. The Human Resources Department conducted a request for proposals (RFP) in partnership with the labor-management Benefits Committee and the County's consultant, Alliant Benefits Consulting. This RFP was applied to both the employee plan and the retiree plan.
DISCUSSION:
Proposals were received from four national carriers (VSP, MESVision, EyeMed and United He...
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