San Bernardino header
File #: 1502   
Type: Consent Status: Passed
File created: 12/13/2019 Department: Board of Supervisors Regular Meeting
On agenda: 12/17/2019 Final action: 12/17/2019
Subject: v Approval of Retiree Medical Plan Contracts
Attachments: 1. Attachment A - Blue Shield Performance Guarantees, 2. Attachment B - Retiree Group Agreement_202001-202212-clean, 3. Attachment C - Medicare Group Agreement_202001-202212-clean, 4. Attachment D - PDP Group Agreement_202001-202212-clean, 5. Attachment E - Blue Shield Signature (HMO) High Option Evidence of Coverage, 6. Attachment F - Blue Shield Signature (HMO) Low Option Evidence of Coverage, 7. Attachment G - Blue Shield PPO High Evidence of Coverage, 8. Attachment H - Blue Shield Low Option Evidence of Coverage, 9. Attachment I - Blue Shield Medicare COB PPO (High Option) Evidence of Coverage, 10. Attachment J - Blue Shield 65 Plus (HMO) High Option Evidence of Coverage, 11. Attachment K - Blue Shield 65 Plus (HMO) Low Option Evidence of Coverage, 12. Attachment L - Blue Shield Signature HMO COB (Frozen Plan) Evidence of Coverage, 13. Attachment M - Blue Shield Hybrid PPO COB (Frozen Plan) Evidence of Coverage, 14. Attachment N - Blue Shield of California Medical RX Plan Evidence of Coverages, 15. Attachment O - Blue Shield Trio HMO Low Option Evidence of Coverage, 16. Attachment P - BSC Commitments to COSB Retiree Plans, 17. Attachment Q - Certificate of Liability, 18. CON-HR-EBSD-12-10-19-Blue Shield Contract 2020 FINAL, 19. Exhibit A - Supplier Agreement Template, 20. Item #28 Executed BAI, 21. 19-844 Executed Contract, 22. 19-845 Executed Contract

REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS

OF THE COUNTY OF SAN BERNARDINO

AND RECORD OF ACTION

 

December 17, 2019

 

FROM

DIANE RUNDLES, Director, Human Resources Department                     

         

SUBJECT                      

Title                     v

Approval of Retiree Medical Plan Contracts

End

 

RECOMMENDATION(S)

Recommendation

1.                     Approve the contract with Blue Shield of California to provide group medical plan benefits for retired employees, eligible dependents and Consolidated Omnibus Budget Reconciliation Act retiree participants for plan years 2020 through 2022, with the option to extend for one additional two-year term.

2.                     Approve the contract with Kaiser Foundation Health Plan, Inc. to provide group medical plan benefits for retired employees, eligible dependents and Consolidated Omnibus Budget Reconciliation Act retiree participants, for plan years 2020 through 2022, with the option to extend for one additional two-year term.

(Presenter: Diane Rundles, Director, 387-5570)

Body

 

COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES

Operate in a Fiscally-Responsible and Business-Like Manner.

 

FINANCIAL IMPACT

Approval of this item will not result in the use of additional Discretionary General Funding (Net County Cost).  There is no additional cost to the County associated with the approval of this item, as the County does not contribute to the cost of premiums for retired employees, their eligible dependents or Consolidated Omnibus Budget Reconciliation Act (COBRA) retiree participants.

 

BACKGROUND INFORMATION

Approval of this item authorizes the contracts for retiree benefits between the County of San Bernardino (County) and the group health plan providers, Blue Shield of California (Blue Shield) and Kaiser Foundation Health Plan, Inc. (Kaiser).

 

On May 28, 2019 (Item No. 4), the Board of Supervisors (Board) approved Blue Shield and Kaiser as the group health plan providers for retired employees, eligible dependents, and retiree Consolidated Omnibus Budget Reconciliation Act participants for retiree benefit plan years 2020 through 2022, with the option to extend for one additional two-year term. The item also directed Human Resources staff to negotiate plan design, rates, and contracts with both carriers.

 

On October 22, 2019 (Item No. 18) the Board approved retiree medical premium rates for the Blue Shield and Kaiser Plans for the 2020 retiree benefit plan year. Approval of this item by the Board provides the final action required in the negotiation of retiree benefits between the County, Blue Shield, and Kaiser for group medical plan benefits for retiree participants for plan years 2020 through 2022.

 

 

 

Key provisions of the contracts with the carriers include the following:

 

Blue Shield

                     An addition of a Non-Medicare HMO plan option with lower premium costs and a narrow network.

                     Performance guarantees in the amount of 2% of premium at risk to ensure a high level of services are provided. Performance guarantees address the following areas: account management, access to care and patient treatment.

 

Kaiser

                     An addition of a Non-Medicare High Deductible Health Plan (HDHP) with lower premium and higher coinsurance costs for retirees and their dependents.

                     Kaiser will continue to provide benefits under the same plan design as those currently offered.

 

 

PROCUREMENT

As a result of a competitive process, on May 28, 2019 (Item No. 4) the Board approved Blue Shield and Kaiser as the group health plan providers for all eligible retirees and their dependents for plan years 2019-20 through 2021-22, with the option to extend for one additional two-year term.

 

REVIEW BY OTHERS

This item has been reviewed by County Counsel (Suzanne Bryant, Deputy County Counsel, 387-5455) on November 13, 2019; Purchasing (Leo Gomez, Purchasing Manager, 387-2063) on November 14, 2019; Finance (Jessica Trillo, Administrative Analyst, 387-4222) on November 15, 2019; and County Finance and Administration (Robert Saldana, Deputy Executive Officer, 387-5423) on November 19, 2019.