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County Administrator's Report 12. 7.

BCC Regular Meeting

Budget & Finance Consent

Meeting Date:	09/07/2017
Issue: Change Order II to Purchase Order 17698 to Blue Cross Blue Shield of Florida
From:	Eric Kleinert
Department:	Human Resources
CAO Approval:

RECOMMENDATION:

Recommendation Concerning a Change Order in Excess of $50,000 to Blue Cross/Blue Shield of Florida for Administrative Services and Stop Loss Insurance for the Self Funded Health Insurance - Eric Kleinert, Human Resources Department Director

That the Board approve and authorize the County Administrator to execute the Change Order 2, in excess of $50,000, adding funds for Administrative Services and Stop Loss Insurance for the County Self Funded Health Insurance Plan:

Department:	Human Resources
Division:	Benefits
Type:	Addition
Amount:	$185,000
Vendor:	Blue Cross/Blue Shield of Florida
Purchase Order:	17698
Change Order:	2
Original Award Amount:	$1,790,000
Cumulative Amount of Change Orders Through this Change Order:	$210,000
New Purchase Order Total:	$2,000,000

[Funding Source: Fund 501, Internal Service Fund, Cost Center 140836, Object Code 54501]

BACKGROUND:

In Fiscal Year 2015, the County issued a RFP for health insurance and went from a fully-funded to a self-funded program. There are three components of costs in a self-funded program – claims, administrative costs and stop loss insurance coverage for both aggregate and individual levels.

We also have a component cost for retirees that does not fall under the other three areas. These costs are placed in stop loss for accounting purposes. We offer a Medicare Advantage Plan, Rx Only Plan and a Medicare Plan F (grandfathered, no retiree can enter plan). Retirees pay the full premiums.

We separate the Purchase Orders to help evaluate our cost, but one of the retiree divisions was paid out of this Purchase Order. Also, we have increased our Contracts by 2% and membership by 4%, respectfully, since we established our budget. There is a small increase from membership, but the majority of the money is shifting the fund allocation to match the billing process.

BUDGETARY IMPACT:

Funding for the above Purchase Orders is through Fund 501, Health Plan.

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 Change Order to increase the purchase order accordingly. The Human Resources Department will coordinate with the Office of Purchasing.

Attachments
No file(s) attached.