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County Administrator's Report 12. 27.

BCC Regular Meeting

Budget & Finance Consent

Meeting Date:	05/05/2016
Issue: Change Order 1 to Purchase Order 160447 to Blue Cross Blue Shield of Florida
From:	Thomas Turner
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 Plan - Thomas G. Turner, Human Resources Department Director

That the Board approve and authorize the County Administrator to execute Change Order 1, in excess of $50,000, adding funds for Administrative Services and Stop Loss Insurance for the County's Self-Funded Health Insurance Plan:

Department	Human Resources
Division	Benefits
Type	Addition
Vendor	Blue Cross Blue Shield of Florida
Purchase Order	160477
Change Order	1
Amount	$720,000
Original Award Amount	$745,000
Cumulative Amount of Change Orders Through This Change Order	$720,000
New Purchase Order Total	$1,465,000

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

BACKGROUND:

In Fiscal Year 2015, the County issued an RFP for health insurance and went from a fully funded to a self funded program. There are three components of cost in a self funded program – claims, administrative costs and stop loss insurance coverage for both aggregate and individual levels. Florida Blue is combining billing for the administrative and stop loss insurance expense. There is no increased cost of the program but rather just 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
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