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County Administrator's Report 9. 11.
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| BCC Regular Meeting |
Budget & Finance Consent |
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| RECOMMENDATION: |
Recommendation Concerning Approval to Issue Fiscal Year 2018-2019 Purchase Orders Totaling $50,000 or Greater - Eric Kleinert, Human Resources Department Director
That the Board approve the issuance of seven Fiscal Year 2018-2019 Purchase Orders and/or Blanket Purchase Orders from previously-awarded or approved annual requirement Contracts or Contractual Agreements for the Human Resources Department:
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Vendor/Contractor |
Not-To-Exceed Amount |
Contract |
| A. |
Delta Dental Insurance Company
Vendor #040643
Dental Insurance
Cost Center 150109
Claims |
$880,723 |
PD 15-16.042 |
| B. |
Delta Dental Insurance Company
Vendor #040643
Dental Insurance
Cost Center 150109
Administrative Fees |
$80,000 |
PD 15-16.042 |
| C. |
Blue Cross Blue Shield of Florida
Vendor #023808
Health Insurance
Cost Center 150108
Retiree Premiums |
$328,000 |
PD 14-15.069 |
| D. |
Blue Cross Blue Shield of Florida
Vendor #023808
Health Insurance
Cost Center 150108
Stop Loss/Administrative Fees |
$1,657,916.40 |
PD 14-15.069 |
| E. |
Blue Cross Blue Shield of Florida
Vendor #023808
Health Insurance
Cost Center 150108
Claims |
$22,536,564 |
PD 14-15.069 |
| F. |
Standard Insurance Company
(Oct - Dec 2018)
Vendor # 121147
Life Insurance
Cost Center 150110 |
$90,000 |
PD 15-16.042 |
| G. |
Occupational Health Center of S.W. PA
DBA Concentra Medical Center
Vendor #150079
Health Clinic
Cost Center 150112 |
$770,014 |
PD 09-10.005 |
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[Funding: Fund 501, Worker’s Compensation, Health and Life Funds]
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| BACKGROUND: |
The Human Resources Department has seven 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 2018 is essential to ensure continuity of benefits for employees and retirees.
Dental – USI went out to bid for dental insurance in 2018 for the County and received a two year premium guarantee reducing our administrative fees from $3.20 to $2.85 to December 2020.
- 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 10 years.
- We reduced our administrative costs and keep a network that services the majority of the employees.
- As of September 2018, we have 892 active employees that have elected low coverage and 918 active employees that elected the high coverage. We offer a discounted dental premium for employees that do not carry our health insurance which totals approximately 110 employees.
- Employee premiums come to approximately $408,650 per year to offset our claims and administrative fees.
- We presently have 457 retirees that have our dental coverage and they are responsible for all of the ASO fees. This comes to approximately $181,661.04 in premiums per year.
- In total we receive approximately $590,311 in premiums to support the dental program.
- This year we budgeted $880,723 for claims and $91,200 for administrative fees. We are running approximately $899,432 in claims and $88,067 in administrative services. We have increased our enrollment by approximately 120 since last Fiscal year.
- 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.
Life – 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 to December 2020. The Purchase Order that is being approved in this Board action is to finish the present plan year that ends in December 2018, for a total of $90,000. Another Board action will be brought forward once the Agreement with the new provider is signed for premiums for January – December 2019.
- Our present cost for basic life is $.099 per thousand and AD&D is $.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 insurance.
- Retirees receive $5,000 basic life insurance through the County.
- The total cost to the County is approximately $31,000 and the remaining portion of the Purchase Order pays for supplemental life that employees have elected for themselves and their dependents.
Health Insurance - USI went out to bid for life insurance in 2018 for the County and are presently finalizing our rates for Stop Loss and Administrative fees. The Purchase Order on this Board action will pay for the Stop Loss premiums to the end of the plan year through December 2018, along with administrative fees for the Fiscal year. The claims are for the Fiscal year payment.
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. The estimated date of the new Contract would be August 1, 2018.
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| BUDGETARY IMPACT: |
Funding for the above Purchase Orders is through Fund 501, Worker’s Compensation, Health and Life Fund.
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| LEGAL CONSIDERATIONS/SIGN-OFF: |
This is in accordance with Florida Statutes 112.09 and 112.0801.
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| 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.
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| 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.
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