REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
June 23, 2020
FROM
GARY McBRIDE, Chief Executive Officer, County Administrative Office
SUBJECT
Title
Amend Inland Empire Health Plan Joint Powers Agreement and Inland Empire Health Plan Health Access Joint Powers Agreement to change from Fiscal Year to Calendar Year in Response to the Department of Health Care Services Moving to a Calendar Year Rating Period
End
RECOMMENDATION(S)
Recommendation
1. Approve Amendment No. 8 to Inland Empire Health Plan Joint Powers Agreement, between San Bernardino County and County of Riverside in order to change from a Fiscal Year to a Calendar Year for financial reporting.
2. Approve Amendment No. 2 to IEHP Health Access Joint Powers Agreement, between San Bernardino County and County of Riverside in order to change from a Fiscal Year to a Calendar Year for financial reporting.
(Presenter: Gary McBride, Chief Executive Officer, 387-5417)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Pursue County Goals and Objectives by Working with Other Agencies.
FINANCIAL IMPACT
Approval of the amendments will not result in the use of additional Discretionary General Funding (Net County Cost).
BACKGROUND INFORMATION
The purpose of this item is to consider amendments to two joint powers agreements in order to change from fiscal year (July 1 to June 30) to calendar year (January 1 to December 31), as approved on May 11, 2020 by the governing Boards of the Inland Empire Health Plan (IEHP) and the IEHP Health Access. This proposed change to a calendar year is for financial reporting purposes and also is in response to the Department of Health Care Services (DHCS) moving to a calendar year rating period.
In 1994, the Board of Supervisors for the Counties of San Bernardino and Riverside (Counties) established the IEHP, a joint powers authority, to provide the health plan administration for the members enrolled in the Medi-Cal managed care plan as legislated by the State. Additionally, due to certain regulations imposed at that time by the California Department of Health Services and the Centers for Medicaid and Medicare, a companion health plan, IEHP Health Access was created by the Counties on May 3, 2005 to service the non Medi-Cal membership of IEHP. The Governing Board of IEHP also serves as the Governing Board for IEHP Health Access.
In February 2020, IEHP received confirmation that DHCS will not release annual revenue rates until September of each calendar year, due to DHCS moving to a calendar year rating period. As a result, IEHP and IEHP Health Access intend to align their operating year with DHCS’s rating period to ensure IEHP has the appropriate revenue information for budget development.
On May 11, 2020, Staff Report and Recommendation #304 to the IEHP Governing Board was approved, including Amendment Nos. Two and Eight to the IEHP Health Access JPA and IEHP JPA, respectively, thereby changing from fiscal year to calendar year. The IEHP Governing Board approved submission of the two amendments to the Board of Supervisors of both Counties for final approval.
Approval of Amendment Nos. Two and Eight to the IEHP Health Access JPA and IEHP JPA, respectively, will change the operating and financial reporting term from fiscal year to calendar year to align with DHCS’s rating period.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Penny Alexander-Kelley, Chief Assistant County Counsel, 387-4270) on June 12, 2020; Finance (Stephenie Shea, Administrative Analyst, 387-4919) on June 11, 2020; and Finance and Administration (Matthew Erickson, County Chief Financial Officer, 387-5423) on June 12, 2020.