DATE: December 6, 2016
TO: Board of Supervisors
SUBMITTED BY: Jean M. Rousseau, County Administrative Officer
Paul Nerland, Director of Human Resources
SUBJECT: County Health Premium Contributions for Plan Year 2017
RECOMMENDED ACTION(S):
TITLE
1. Approve the Addendum to Memorandum of Understanding regarding County Health Premium Contributions for Plan Year 2017, effective December 19, 2016, for the following Representation Units:
a) Unit 02 - Sheriff’s and Probation Personnel
b) Unit 03 - Mental Health Professionals and Social Workers
c) Unit 04 - Eligibility
d) Unit 07 - Nurses
e) Unit 10 - District Attorney Investigators
f) Unit 11 - Deputy Probations Officers
g) Unit 12 - Clerical, Paramedical, Building and Service Employees
h) Unit 13 - Crafts and Trades
i) Unit 19 - Professional Employees
j) Unit 22 - Professional, Para-Professional and Technical Employees
k) Unit 25 - Engineering Technicians
l) Unit 30 - Deputy District Attorneys
m) Unit 31 - Public Defenders
n) Unit 36 - Supervisory Employees
o) Unit 39 - Operating Engineers
p) Unit 40 - Probation Services Managers
q) Unit 42 - Engineers
r) Unit 43 - Computer Employees
2. Approve the County Health Premium Contributions for Plan Year 2017 for Unrepresented and Management (including Senior Management) employees under the same terms and conditions as specified in the Addendum for Representation Units participating in the County’s Health Benefit Program, effective December 19, 2016.
3. Adopt Budget Resolution increasing the FY 2016-17 appropriations in the Interest and Misc Expenditures Org 2540 in the amount of $1,000,000 and decreasing the Assigned Fund Balance of the General Fund for Capital Projects in the amount of $1,000,000 (4/5 vote).
REPORT
Approval of the recommended action would implement the County’s Health Premium Contribution increase for Plan Year 2017 for the identified groups currently receiving $233 per pay period.
ALTERNATIVE ACTION(S):
If the Board were not to approve the recommended action the existing County Health Premium Contribution would remain unchanged and Health Premium Contribution negotiations would continue.
FISCAL IMPACT:
The estimated cost associated with the recommended action is approximately $9,063,979 ($1,623,003 NCC).
Approval of the third recommended action will increase the FY 2016-17 adopted appropriations of the Interest and Misc Expenditures Org 2540 in the amount of $1,000,000 using funding from the release of the Assigned Fund Balance in the General Fund for Capital Projects that were not identified for special projects during FY 2016-17 budget. Departments that do not have sufficient appropriations to absorb the additional expenditures through salary savings in the FY 2016-17 budget may request the use of additional funds from the Interest and Misc Expenditures Org 2540.
DISCUSSION:
Your Board’s representatives have signed tentative agreements with the identified representation units regarding the County Health Premium Contribution for Plan Year 2017, which are before your Board today for approval. In the spirit of equity, the same offer was extended to groups who had previously agreed to status quo County Health Premium Contributions and who did not have a health insurance re-opener provision within their respective Memorandum of Understandings, which are also included on this agenda item.
Additionally, approval of Recommended Action No. 2 would extend the same County Health Premium Contribution for Unrepresented and Management (including Senior Management) employees under the same terms and conditions as specified in the Addenda for Representation Units participating in the County’s Health Benefit Program.
As reflected in the Addendum, the County’s Health Premium Contribution towards the County sponsored Health Plans for Plan Year 2017 (including $95 or $100 for dependent coverage depending on the employee’s selection) will increase by $50 per pay period and is as follows:
• Employee Only: $283
• Employee plus Child(ren): $378
• Employee plus Spouse: $378
• Employee plus Family: $383
Furthermore, the Health Benefit Addendum will continue to allow employees eligible to participate in the County’s Health Benefit Program the ability to opt out of the County’s Health Benefit Program during the next open enrollment period by providing written proof that they have group medical coverage from another source.
ATTACHMENTS INCLUDED AND/OR ON FILE:
Addendum to Memorandum of Understanding for Representation Units Participating in the County’s Health Benefit Program
On file with Clerk - Budget Resolution (Org 2540)
CAO ANALYST:
Sonia De La Rosa