Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Rocio Kiryczun, Human Resources Director
Kim Pearson, Benefits Manager
Subject: Request for Authority to Enter Medical Plan Agreements with Aetna Life Insurance Company
RECOMMENDATION:
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Adopt a resolution authorizing the Human Resources Director or the Director's designee to execute agreements with Aetna Life Insurance Company for County health insurance plans for the period of January 1, 2023 to December 31, 2027, with the aggregate amount not to exceed $58,000,000 in 2023 based on projected enrollment.
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BACKGROUND:
The County's current providers for its medical insurance program are Kaiser and Blue Shield of California. Kaiser plan enrollment includes 5,583 employees and retirees, and enrollment in the Blue Shield plan includes 2,659 employees and retirees. The entire medical insurance program, including dependents, covers over 15,000 lives.
The current agreement with Blue Shield expires on December 31, 2022. The Human Resources Department conducted a request for proposals (RFP) in partnership with the labor-management Benefits Committee and the County's broker/consultant, Alliant Benefits Consulting. The scope of the RFP included only the non-Kaiser plan for which Blue Shield is the incumbent provider.
DISCUSSION:
Proposals were solicited from eight regional and national carriers that could offer provider networks to meet our plan participants' diverse geographic needs. Eight proposals were received with varying levels of responsiveness.
Each proposal was rated on provider network, pricing and rate guarantees, ability to match or exceed the current benefit plan design, and service and performance guarantees-individually and in the aggregate. This initial review resulted in the unanimous selection of two interview finalists: Blue Shield and Aetna.
Both finalists were asked to provide supplemental information to address key...
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