Subject:
Title
Approval of term extension with UnitedHealthcare Services, Inc. for requirements of Group Retiree Medical Benefits.
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Recommended Action:
Recommended Action
Approval by the County Administrator, as requested by Human Resources, of term extension with UnitedHealthcare Services, Inc. d/b/a UnitedHealthcare (United), for the Medicare portion of Group Retiree Medical Benefits.
Contract No. 156-0174-P(JA) in a not-to-exceed amount of $46,878,507.00 for sixty (60) months for Medicare premiums; total sixty (60) month benefits contract not-to-exceed $228,463,547.00 (includes Medicare premiums).
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Strategic Plan:
Create a Quality Workforce in a Positive, Supportive Organization
1.3 Make workforce safety and wellness a priority
1.4 Maintain a fair and competitive compensation package
Summary:
United recognizes the Medicare coverage portion (only) of the medical benefits contract as an annual term extension of the County’s policy since January 1, 2012 and each January 1st thereafter since the initial inception of the policy. Medicare Advantage Premiums are subject to an annual adjustment per the Centers for Medicare and Medicaid Services, taking into consideration the County’s claim history. Utilizing the premium-based Medicare Advantage plan provides cost certainty, due to the fixed cost per participant. The 2018 plan year rates reflect a five (5%) percent increase over 2017 rates; however, there is no increase to the overall contract as the Board of County Commissioner (Board) approval contains ample funds at this point in time based on claims experience.
Background/Explanation:
The medical benefits package, including Medicare retiree coverage, was approved by the County Administrator on December 27, 2016, with ratification by the Board on January 10, 2017.
Fiscal Impact:
Sixty (60) month employee benefit premiums not to exceed: $228,463,547.00
(Includes Medicare Premium)
Sixty (60) month Medicare Premium portion not to exceed: $ 46,878,507.00
The addition of funds is not required for this term extension.
Funds are derived from the Human Resource Department Employee Benefits Fund.
Delegated Authority:
Authority for the County Administrator to approve and execute this term extension is granted under Code Section 2-62(a)(2).
Staff Member Responsible:
Holly Schoenherr, Director, Human Resources Department
Joe Lauro, Director, Purchasing Department
Partners:
N/A
Attachments:
Medicare Advantage Term Extension 2018