Agenda

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County Administrator's Report 9. 9.

BCC Regular Meeting

Budget & Finance Consent

Meeting Date:	09/24/2020
Issue: Supplemental Budget Amendment #211 - Health Insurance Costs
From:	Amber McClure
Department:	Asst County Administrator
CAO Approval:

RECOMMENDATION:

Recommendation Concerning Supplemental Budget Amendment #211, Health Insurance Costs, Jana Still, Human Resources Department Director - Amber McClure, Chief Budget Officer, Management and Budget Services

That the Board adopt the Resolution approving Supplemental Budget Amendment #211, to fund the increase requested on the Agenda Item related to Purchase Order 200784 to Florida Blue. This amendment will increase the budget by $2,407,000 to cover the health insurance costs. The total increase to the purchase order is $3.1 million to fund remaining anticipated insurance expenses for the fiscal year. There is a budget balance of $700,000 remaining in the health insurance expense account leaving a budget shortfall of $2.4 million. The increased expense will be covered by pharmacy rebates of $703,000 collected during Fiscal Year 2020, and an additional allocation of health insurance expense to BCC departments of $1,704,000. Projected Fiscal Year personnel savings are sufficient to cover this allocation of health insurance expense.

Fund Number	Fund Name	Revenue Code	Revenue Title	Amount
501	Internal Service Fund	341245	BC/BS Rebate	703,000
501	Internal Service Fund	341206	SFF Employee Group Health	1,704,000
Total				$2,407,000

Fund Number	Cost Ctr. No.	Cost Center Title	Account Code	Account Title	Amount
501	150108	Health	53401	Other Contractual Services	703,000
501	150108	Health	53401	Other Contractual Services	1,704,000
Total					$2,407,000

BACKGROUND:

The County's health insurance claims historically averaged $1.8 million per month. For Fiscal Year 2020, the average per month is approximately $2.1 million. Based on July's expenses of $2.4 million and the trend this Fiscal Year, additional health insurance expense allocations to the departments are necessary to fund anticipated insurance expenses for August and September 2020. This supplemental also recognizes funds received from Florida Blue for pharmacy rebate payments. Florida Blue receives rebates from drug manufacturers for select brand name medications to assist with pharmacy cost management. These rebates are passed down to Escambia County and are being recognized to fund health insurance costs.

BUDGETARY IMPACT:

This Amendment will increase Fund 501 by $2,407,000.

LEGAL CONSIDERATIONS/SIGN-OFF:

N/A

PERSONNEL:

N/A

POLICY/REQUIREMENT FOR BOARD ACTION:

Increases and decreases in revenue must be approved by the Board per F.S.129.06 -Execution and amendment of budget.

IMPLEMENTATION/COORDINATION:

N/A

Attachments
SBA# 211