Employee and Public Services
November 12, 2003
BOARD MEETING DATE:
December 2, 2003
Honorable Board of Supervisors
Mary Welch, EPS Director
Paul Hackleman, Benefits Manager
Approve Waiving a RFP Process and Amending an Agreement with Aetna.
Approve a resolution waiving a RFP process and authorizing the EPS Director to sign an amendment with Aetna for the provision of health benefits to County employees, retirees and their dependents for the period from January 1, 2004 through December 31, 2004.
Aetna represents an important alternative to Kaiser and Blue Shield. The Aetna network is less restrictive than Kaiser's (individual providers are based throughout the community rather than being affiliated with a specific facility) and it is less costly than the Blue Shield plan. Aetna provides coverage to approximately 1,400 employees and retirees under age 65.
Last year, in negotiations with employee organizations, the County made important modifications to the co-pays in the Aetna plan in an effort to reduce long-term premium increases. Although the changes have not reduced 2004 premium increases (because they have been in place for less than a year), they are expected to keep future premium increases lower.
· Offered the best proposal for coverage and cost in 2001 in response to a Request for Proposal process,
· No new options have arisen which would represent less cost and less disruption of patient-physician relationships and
· Labor requested the continuation of Aetna and agreed to changes in co-payments during negotiations last year.
The contract with Aetna represents Vision Statement #20 which focuses on careful consideration of future impact and #21 incorporating the County's vision and goals into delivery of services.
The net County cost increase for 2004 for active employees and retirees under age 65 is $1,395,000 which represents a 17% increase.