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County Administrator's Report 14. 19.
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| BCC Regular Meeting |
Budget & Finance Consent |
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| RECOMMENDATION: |
Recommendation Concerning Approval to Issue Fiscal Year 2019-2020 Purchase Orders Totaling $50,000 or Greater - Paulette Stallworth, Interim Human Resources Department Director
That the Board approve the issuance of the provided 11 Fiscal Year 2019-2020 Purchase Orders and/or Blanket Purchase Orders from previously awarded or approved annual requirement Contracts or Contractual Agreements for the Human Resources Department. |
| BACKGROUND: |
The Human Resources Department has 11 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 2019 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 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 12 years.
- We reduced our administrative costs and kept a network that services the majority of the employees.
- As of September 2019, we have 860 active employees that have elected low coverage and 948 active employees that elected the high coverage. We offer a discounted dental premium for employees that do not carry our health insurance which is approximately 110 employees.
- 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 $185,772.00.
- 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's 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.
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 through December 2020.
- 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 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.
Health Insurance - USI went out to bid for health insurance in 2018 for the County for administrative services. Stop Loss is a year-by-year negotiation depending on the utilization of the health plan. The Administrative Fees Purchase Order will be for the complete Fiscal Year, while the Stop Loss Purchase Order on this Board action will be for the period of October 2019 through December 2019. 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 (Grandfathered) 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.
Long Term Disability – 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.
Vision Care – In January 2019, 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.
Clinic - The County’s employee health clinic Contract went out to bid in 2010 and was awarded in 2011 to Concentra Medical Center. We are on the final year of our Contract and will be going out to bid to test the market. The estimated date of the new Contract would be August 1, 2020. |
| 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. |
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