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County Administrator's Report 10. 16.

BCC Regular Meeting

Budget & Finance Consent

Meeting Date:	10/05/2017
Issue: Approval to Issue Fiscal Year 2017-2018 Purchase Orders Totaling $50,000 or Greater
From:	Eric Kleinert
Department:	Human Resources
CAO Approval:

RECOMMENDATION:

Recommendation Concerning Approval to Issue Fiscal Year 2017-2018 Purchase Orders Totaling $50,000 or Greater - Eric Kleinert, Human Resources Department Director

That the Board approve the Issuance of eight Fiscal Year 2017-2018 Purchase Orders and/or Blanket Purchase Orders totaling $50,000 or greater, from previously-awarded or approved annual requirement Contracts or Contractual Agreements for the Human Resources Department:

	Vendor/Contractor	Not-To-Exceed Amount	Contract
A.	Delta Dental Insurance Company Vendor #040643 Dental Insurance Cost Center 150109 Claims	$870,000	PD 15-16.042
B.	Delta Dental Insurance Company Vendor #040643 Dental Insurance Cost Center 150109 Administrative Fees	$85,000	PD 15-16.042
C.	Blue Cross Blue Shield of Florida Vendor #023808 Health Insurance Cost Center 150108 Retiree Premiums	$280,000	PD 14-15.069
D.	Blue Cross Blue Shield of Florida Vendor #023808 Health Insurance Cost Center 150108 Administrative Fees	$1,924,325	PD 14-15.069
E.	Blue Cross Blue Shield of Florida Vendor #023808 Health Insurance Cost Center 150108 Claims	$20,332,474	PD 14-15.069
F.	Standard Insurance Company Vendor #121147 Life Insurance Cost Center 150110	$325,000	PD 15-16.042
G.	Occupational Health Center of S.W. PA DBA Concentra Medical Center Vendor #150079 Health Clinic Cost Center 150112	$809,058	PD 09-10.005
H.	AON Consulting, INC. DBA AON Hewitt Vendor #420681 Benefit Consulting Fees Cost Center	$50,000	PD 14-15.020

[Funding: Fund 501, Worker’s Compensation, Health and Life Funds]

BACKGROUND:

The Human Resources Department has eight Purchase Orders that, during the course of a Fiscal Year, equal or exceed $50,000 to support the employee benefits. Issuance of these Purchase Orders during October 2017 is essential to ensure continuity of benefits for employees and retirees.

Dental - The County went out to bid for its dental insurance in 2016 and received a 3 year premium guarantee to December 2019.

We are self funded and at least once a year we review what Administrative Services Only (ASO) fees should be and we have not adjusted them in the last 9 years.
We were able to maintain our administrative costs and keep a network that services the majority of the employees.
As of July 2017, we have 876 active employees that have elected low coverage and 815 active employees that elected the high coverage. We offer a discounted dental premium for employees that do not carry our health insurance which totals 110 employees
Employee premiums come to approximately $405,507 per year to offset our claims and administrative fees.
We have 438 retirees that have our dental coverage and they are responsible for all of the ASO fees. This comes to $171,733.08 in premiums per year.
All in total, we receive $577,240 in premiums to support the dental program.
This year, we budgeted $870,000 for claims and $85,000 for administrative fees. We are running approximately $873,937 in claims and $82,000 in administrative services. We have increased our enrollment by 65 since last Fiscal Year.
Considering the number of employees and retirees that we have on our plan and if each employee maxed out on the plan we could spend roughly $2.7 million dollars. This does not include dependents and orthodontic coverage.

Life - The County went out to bid for its life insurance in 2016 and received a 3 year premium guarantee to December 2019.

During this bid cycle, we reduced our life insurance premiums from $.185 per thousand to $.099 per thousand and AD&D was reduced from $.022 per thousand to $.02 per thousand.
We provide both $40,000 basic life and AD&D insurance to all eligible employees along with the additional $10,000 coverage for those employees that do not take our health care coverage.
Retirees receive $5,000 basic life insurance through the County.
Total cost to the County is approximately $105,000 and the remaining portion of the Purchase Order pays for supplemental life that employees have elected for themselves and their dependents. We are trending this year at $326,000.

Health Insurance - The County went out to bid for its health insurance in 2015. We are starting our third year of self funding and our intentions are to look yearly at health design for the County and other ways to provide competitive health plans for our employees and retirees.

Our Contracts have increased by an average of 2% in the past two years
Our membership has increased by 4% each of the past two years

The County’s employee health clinic Contract went out to bid in 2010 and was awarded in 2011 to Concentra Medical Center. The intent is to go out to bid to test the market for the clinic. Estimated date of the new Contract would be August 1, 2018.

The County signed a three year Contract with AON Hewitt as a benefit consultant to provide the County assistance in the health care areas, such as self funding reviews including filing documents to the State, Affordable Care Act advice and other assistance needed in relation to benefits. We are in the process of advertising for a consultant with an effective date of January 1, 2018.

Purchase Orders do not reflect the addition of ECAT employees regarding dental, employee assistance program, COBRA and life. Money will be moved from the health care cost center to assist in paying the bills later. Presently, we have not established premiums for our stop loss for 2018 and we will need to adjust the Admin/Stop Loss and Premium Purchase Order accordingly.

BUDGETARY IMPACT:

Funding for the above Purchase Orders is through Fund 501, Worker’s Compensation, Health and Life Fund.

LEGAL CONSIDERATIONS/SIGN-OFF:

This is in accordance with Florida Statutes 112.09 and 112.0801.

PERSONNEL:

N/A

POLICY/REQUIREMENT FOR BOARD ACTION:

County Ordinance, Chapter 46, Article II, Section 46-64 providing for Board approval of Contracts of $50,000 or greater.

IMPLEMENTATION/COORDINATION:

Upon Board approval, the Human Resources Department will generate a Purchase Order as an instrument for placing orders and making payments to provide services. The Human Resources Department will coordinate with the Office of Purchasing.

Attachments
No file(s) attached.