REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
May 23, 2023
FROM
DIANE RUNDLES, Assistant Executive Officer, Human Resources Department
SUBJECT
Title
Vision Plan Provider Contract and Premium Rates for Plan Years 2023-24 through 2025-26 with EyeMed Vision Care, L.L.C.
End
RECOMMENDATION(S)
Recommendation
1. Approve vision premium rates for plan years 2023-24 through 2025-26 for EyeMed Vision Care, L.L.C. as shown in Attachment A.
2. Approve contract with EyeMed Vision Care, L.L.C. as a group vision plan provider for active employees, eligible dependents, and Consolidated Omnibus Budget Reconciliation Act participants, for plan years 2023-24 through 2025-26.
(Presenter: Diane Rundles, Assistant Executive Officer, 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 vision premium rates for 2023-24 through 2025-26 will not increase from current premium rates.
|
Plan |
Current Estimated Annual Premiums |
2023-24 to 2025-26 Estimated Annual Premiums |
Net Change over 5-year term |
|
County Paid Vision |
$1,191,628 |
$1,191,628 |
$0.00 |
|
Employee Paid Dependent Coverage |
$190,116 |
$190,116 |
$0.00 |
|
Total |
$1,381,744 |
$1,381,744 |
$0.00 |
BACKGROUND INFORMATION
On October 18, 2022, the Human Resources Department (HR) began the Request for Proposal (RFP) process to solicit vendor proposals for vision benefits for active employees, eligible dependents, and Consolidated Omnibus Budget Reconciliation Act (COBRA) participants. HR, the Employee Benefits Advisory Committee (EBAC), and the County’s contracted benefits consultants, the Segal Company (Segal), with a collaborative effort and through a negotiation process, successfully secured the following vision benefits and premium rates with EyeMed Vision Care, L.L.C. (EyeMed):
• A guarantee of no premium rate increases for three years from plan year 2023-24 through the end of plan year 2025-26, and a guaranteed rate pass for plan years 2026-27 and 2027-28, if the County extends the contract for an additional two years as allowed by the terms of the contract.
• Enhanced benefits through the Eye360 plan, including additional $50 frame allowance at PLUS providers (i.e., retail providers such as Target Optical and LensCrafters).
• An annual $10,000 wellness credit.
• Fixed rate on progressive lenses, anti-reflective coating, and photochromic lenses.
• Discounts on hearing care.
HR recommends approval of this item to establish contract terms and premium rates for EyeMed to provide vision benefits for active employees, eligible dependents, and COBRA participants for plan years 2023-24 through 2025-26.
PROCUREMENT
On October 18, 2022, HR issued RFP No. HRD221-HR2-4761 to solicit vendor proposals for a vision plan in order to obtain favorable vision premium rates and benefits. The RFP was posted to the County’s Electronic Procurement Network (ePro) website and was distributed to six vision carriers. One carrier declined to quote. HR received proposals by the November 28, 2022 deadline from the following five carriers, who all met the minimum proposer requirements:
|
Carrier Name |
Location |
|
EyeMed Vision Care |
Mason, OH |
|
Blue Shield of California |
San Francisco, CA |
|
Met Life |
New York, NY |
|
United Health Care |
Hartford, CT |
|
VSP |
Rancho Cordova, CA |
Segal assisted HR with evaluating proposals received using the following criteria: optimal combination of quality, proposed rates, benefits provided, provider access, quality of care, financial stability, customer service, and proposed cost containment strategies. A comparative analysis was provided to the EBAC for review and consideration. After a thorough examination of the proposals, the EBAC determined that EyeMed’s Eye360 plan proposal provided the best value in terms of cost and plan design for employees and their eligible dependents and recommended the County contract with EyeMed as the provider for active vision plans. The vendors not recommended for contract award were notified by email on March 22, 2023. No formal protests were received.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Tawny Lieu, Deputy County Counsel, 387-5455) on May 4, 2023; Purchasing (Bruce Cole, Supervising Buyer, 387-2148) on May 8, 2023; Finance (Abigail Grant, Administrative Analyst, 387-4603) on May 5, 2023; and County Finance and Administration (Paloma Hernandez-Baker, Deputy Executive Officer, 387-5423) on May 7, 2023.