Agenda

Back to Calendar Return

County Administrator's Report 7. 17.

BCC Regular Meeting

Budget & Finance Consent

Meeting Date:	10/15/2020
Issue: Approval to Issue Fiscal Year 2020-2021 Purchase Orders in Excess of $25,000, for the Human Resources Department
From:	Jana Still
Department:	Human Resources
CAO Approval:

RECOMMENDATION:

Recommendation Concerning Purchase Orders for Health Insurance - Jana Still, Human Resources Department Director

That the Board approve the issuance of 11 blanket and/or individual Purchase Orders, in excess of $25,000, for Fiscal Year 2020/2021, based upon previously awarded or approved annual requirement Contracts or Contractual Agreements for the Human Resources Department.

Item	Vendor/Contractor	Not-To-Exceed Amount	Contract
A.	Delta Dental Insurance Company Vendor: #040643 Dental Insurance Cost Center: 150109 Claims	$900,000	Bidding process completed by USI on behalf of the County. Contract approved on 09/06/18 Board Meeting; effective 01/01/2019.
B.	Delta Dental Insurance Company Vendor: #040643 Dental Insurance Cost Center: 150109 Administrative Fees	$82,000	Bidding process completed by USI on behalf of the County. Contract approved on 09/06/18 Board Meeting; effective 01/01/2019.
C.	Blue Cross Blue Shield of Florida Vendor: #023808 Health Insurance Cost Center: 150108 Retiree Premiums	$407,000	Bidding process completed by USI on behalf of the County. Contract approved on 09/06/18 Board Meeting; effective 01/01/2019.
D.	Blue Cross Blue Shield of Florida Vendor: #023808 Health Insurance Cost Center: 150108 Administrative Fees	$1,201,906	Bidding process completed by USI on behalf of the County. Contract approved on 09/06/18 Board Meeting; effective 01/01/2019.
E.	Blue Cross Blue Shield of Florida Vendor: #023808 Health Insurance Cost Center: 150108 Claims	$22,941,200	Bidding process completed by USI on behalf of the County. Contract approved on 09/06/18 Board Meeting; effective 01/01/2019.
F.	The Lincoln National Life Insurance Company Vendor: # 425648 Life Insurance Cost Center: 150110	$320,000	Bidding process completed by USI on behalf of the County. Contract approved on 09/06/18 Board Meeting; effective 01/01/2019.
G.	USI Southwest Inc Vendor: #424847 Consulting/Broker Services Cost Center: 150108	$62,500	PD 16-17-094
H.	Stop Loss Insurance Service, Inc. Oct 19 – Dec 19 Vendor: #425652 Health Insurance Cost Center: 150108 Stop Loss Insurance	$210,000	Bidding process completed by USI on behalf of the County. Contract approved on 09/06/18 Board Meeting; effective 01/01/2019.
	The Lincoln National Life Insurance Company Vendor: #425648 Long Term Disability Cost Center: 150113	$87,000	Bidding process completed by USI on behalf of the County. Contract approved on 09/06/18 Board Meeting; effective 01/01/2019.
J.	Humana Insurance Company Vendor: #L21633 Vision Care Insurance Cost Center: 150114 Vision Care Coverage	$130,000	Bidding process completed by USI on behalf of the County. Contract approved on 09/06/18 Board Meeting; effective 01/01/2019.
K.	Occupational Health Center of S.W. PA DBA Concentra Medical Center Vendor: #50079 Health Clinic Cost Center: 150112	$68,000	PD 09-10.005
L.	Marathon Health, LLC (Marathon) Champlain Mill 20 Winooski Falls Way, Suite 400 Winooski, VT 05404	$1,050,000	PD 19-20.035
M.	PlanSource Benefits Administration Vendor: #426378 101 S. Garland Ave., Suite 203 Orlando, FL 32801	$240,000	Bidding process completed by USI on behalf of the County.

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

BACKGROUND:

The Human Resources Department has 11 Purchase Orders that, during the course of a Fiscal Year, equal or exceed $25,000 to support the employee benefits. Issuance of these Purchase Orders during October 2020, is essential to ensure continuity of benefits for employees and retirees.

Dental: (Items A & B)
USI went out to bid for dental insurance in 2018, for the County and received a three-year premium guarantee, reducing our administrative fees from $3.20 to $2.85 through December 2021.

We are self-funded and at least once a year we review Administrative Services Only (ASO) fees. We have not adjusted them in the last 13 years.

We reduced our administrative costs and kept a network that services our employees.
As of August 2020, we have 860 active employees that have elected low coverage and 948 active employees that elected the high coverage.
Employee premiums collected are approximately $458,042 per year to offset our claims and administrative fees.
We presently have 469 retirees that have our dental coverage and they are responsible for all ASO fees. Annual premiums paid by retirees are approximately $185,772.
In total, we receive approximately $643,814 in premiums to support the dental program.
This year we budgeted $900,990 for claims and $81,943 for administrative fees. We are running approximately $902,000 in claims and $81,000 in administrative services. Enrollment numbers are running steady compared to last year numbers.
If each employee and retiree maxed out on the dental plan, we could spend roughly 2.8 million dollars. This does not include dependents and orthodontic coverage.

Health Insurance: (Items: C, D, E, & H)
USI went out to bid for health insurance in 2018, for the County for administrative services. The Administrative fees Purchase Order will be for the complete Fiscal Year.

Stop Loss is a year-by-year negotiation depending on the utilization of the health plan. While the Stop Loss Purchase Order on this Board action will be for the period of October 2020, through December 2020, once the Stop Loss negotiation has been completed, we will provide an additional Board action to authorize the Purchase Order.

We also have a Purchase Order that is separate for retirees that have enrolled in the Medicare Advantage Plan, Plan F Supplement (Grandfather), and the Rx Only Plan. The premiums are established by Medicare (CMS) prior to the beginning of the calendar year and are paid by the retirees.

Broker/Consultant: (Item G)
The County is in the third and last year of the Contract with USI for Broker/Consultant Services to expire March 2021. We will be going out to bid in the next couple of months. USI has provided excellent consulting for all benefit programs including the clinic. The County and employees have received savings in each of the Contracts. Our Stop Loss premiums have been flat for the first two years and we will be finalizing the 2021 Contract in the next month. USI renegotiated with Florida Blue regarding pharmacy rebates, which will increase our pharmacy rebates effective January 2020.

Life: (Item F)
USI went out to bid for life insurance in 2018 for the County and received a 2-year premium guarantee, reducing our basic life insurance and AD&D insurance premiums through December 2020. The vendor has agreed to extending the Contract an additional year (December 2021).

Our present cost for basic life is $.081 per thousand and AD&D is $.018 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 insurance.
Retirees receive $5,000 basic life insurance paid by the County.
The total cost to the County is approximately $107,000, and the remaining portion of the Purchase Order pays for supplemental life that employees have elected for themselves and their dependents.

Long Term Disability: (Item I)
In January 2019, we began paying Long Term Disability premiums out of the revenue account of the Human Resources Department for all appointing authorities. The premiums are paid by the employees. As with the Life insurance, the vendor has agreed to extend the Contract until December 2021.

Vision Care: (Item J)
In January 2020, we started paying Vision Care premiums out of the revenue account by the Human Resources Department for all appointing authorities. The premiums are paid by the employees and retirees.

Clinic: (Items K & L)
The County has a one-month extension with Concentra, October 2020, in this Fiscal Year. In November 2020, the clinic vendor will be moving from Concentra to Marathon.

PlanSource: (Item M)
PlanSource is the Benefit Administrative System that was implemented prior to open enrollment last year. A Benefit Administrative System is an essential function for managing our benefit programs in support of approximately $29M budget and servicing approximately 3,000 employees and retirees plus their families. Some of the key features it has provided include: electronic entry for enrollment/qualified life event, 24-hour access for employees and their family from work or home to provide access to plan documents and comparison of benefits, Cobra/ACA administration, monitoring of retiree insurance payments, provides Electronic Data Interchange (EDI) files to our core benefit providers, and assists in reconciling our administrative bills. The program has eliminated duplicate entries in different programs and reduced chances of error.

BUDGETARY IMPACT:

Funding for the above Purchase Orders is through Fund 501, Worker’s Compensation, Health, and Life Fund with the approved budget for Fiscal Year 2020/2021.

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 coordinate with the Office of Purchasing to generate the Purchase Orders as the instrument for placing orders and making payments to provide services.

Attachments
No file(s) attached.