DATE: September 25, 2018
TO: Board of Supervisors
SUBMITTED BY: Paul Nerland, Director of Human Resources
SUBJECT: County Health Premiums for Plan Year 2019
RECOMMENDED ACTION(S):
TITLE
1. Approve the biweekly premiums for active employees and dependents for Plan Year 2019, effective December 17, 2018 (Exhibit A).
2. Approve the monthly premiums for retirees and dependents for Plan Year 2019, effective January 1, 2019 (Exhibit B).
REPORT
Approval of the recommended actions will approve the health and life insurance biweekly and monthly rates for Plan Year 2019 for employees, retirees, and their dependents.
ALTERNATIVE ACTION(S):
Your Board may choose to consider benefit modifications that would affect premiums, copayments or deductibles. However, benefit modifications for plans through the SJVIA would require approval by the SJVIA Board.
SUSPENSION OF COMPETITION/SOLE SOURCE CONTRACT:
On May 1, 2018, your Board made a finding that it was in the best interest of the County to waive the competitive bidding process consistent with Administrative Policy No. 34 under the "unusual or extraordinary circumstances" exception for the solicitation of health benefits plan proposals for Plan Year 2019. This allowed the County the flexibility needed to negotiate directly with health insurance providers and maximize cost effective alternatives that best meet the needs of the County, its active employees, retirees, and their dependents. Additionally, your Board waived the competitive bidding process for ancillary benefits including life and disability insurance. A new agreement for life insurance benefits will be brought to your Board for approval at a future Board meeting.
FISCAL IMPACT:
Appropriations and related projected revenue of $89.8 million has been included in the Risk Management Org. 8925 FY 2018-19 Recommended Budget for pass-through health insurance premiums of County employees, retirees, and dependent coverage. Of this amount, approximately $81 million ...
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