RESOLUTION NO. _____________
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BOARD OF SUPERVISORS, COUNTY OF SAN MATEO, STATE OF CALIFORNIA
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RESOLUTION A) WAIVING THE REQUEST FOR PROPOSAL PROCESS AND AUTHORIZING THE PRESIDENT OF THE BOARD TO EXECUTE AN AGREEMENT WITH BLUE SHIELD TO OFFER COUNTY EMPLOYEES, RETIREES AND THEIR DEPENDENTS A HMO PLAN FOR THE PERIOD FROM APRIL 1, 2010 TO DECEMBER 31, 2010 WITH THE AMOUNT NOT TO EXCEED $15,468,000 ($14,561,000 FOR ACTIVES AND $907,000 FOR RETIREES); AND B) AUTHORIZING THE HUMAN RESOURCES DIRECTOR OR THE DIRECTOR'S DESIGNEE TO EXECUTE CONTRACT AMENDMENTS WHICH MODIFY THE COUNTY'S MAXIMUM FISCAL OBLIGATION BY NO MORE THAN $25,000 (IN AGGREGATE), AND/OR MODIFY THE CONTRACT TERM AND/OR SERVICES SO LONG AS THE MODIFIED TERM OR SERVICES IS/ARE WITHIN THE CURRENT OR REVISED FISCAL PROVISIONS.
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RESOLVED, by the Board of Supervisors of the County of San Mateo, State of California, that
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WHEREAS, each year prior to open enrollment, the County negotiates health plan premium rates; and
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WHEREAS, in June 2009, Aetna provided the County a preliminary rate increase of 19.3% (rate increases for Kaiser and Blue Shield POS were 4.3% and 0% respectively); and
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WHEREAS, given Aetna’s disproportionately high rate increase, the County requested a rate quote from Blue Shield for an HMO plan similar to Aetna’s and Blue Shield quoted a 6.8% increase for its HMO plan; and
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WHEREAS, the County met with all employee organizations in the Fall of 2009 to discuss changing from an Aetna to Blue Shield HMO plan; and
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WHEREAS, on November 10th and December 1st, the Board of Supervisors approved AFSCME and SEIU Memoranda of Understanding (MOUs) that included the Aetna to Blue Shield change. Agreement was reached with all other bargaining units regarding this change in January 2010; and
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WHEREAS, it is in the County’s best interests to waive the formal request for proposal process because: 1) the timing of Aetna’s notice of rate increase precluded the issuance of an RFP for an HMO plan for the time period covered by the agreement; 2) although Aetna subsequently revised its rate quote to an 11% increase, the Aetna plan was still $740,000 more expensive per year than the Blue Shield HMO plan; 3) the proposed agreement will result in $740,000 savings per year for the County and employees as compared to Aetna’s final rate quote; 4) the proposed agreement will strengthen the County’s future negotiating power; 5) the proposed agreement will not disrupt existing patient / primary care physician relationships; 6) the proposed agreement will allow the HMO participants access to a larger primary care physician network, enhanced benefits, and participate in Blue Shield’s Healthy Lifestyle Rewards Program at no cost to the County; and 7) the County will be conducting a formal RFP within the next two to three years regarding all medical plans.
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NOW, THEREFORE, IT IS HEREBY DETERMINED AND ORDERED that the Board of Supervisors hereby waives the Request for Proposal process and authorizes the President of the Board to execute an Agreement with Blue Shield to offer County employees, retirees and their dependents an HMO plan for the period from April 1, 2010 to December 31, 2010 with the amount not to exceed $15,468,000 ($14,561,000 for actives and $907,000 for retirees); and
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BE IT FURTHER RESOLVED that the Board of Supervisors hereby authorizes the Human Resources Director or the Director's designee to execute contract amendments which modify the County's maximum fiscal obligation by no more than $25,000 (in aggregate), and/or modify the contract term and/or services so long as the modified term or services is/are within the current or revised fiscal provisions.
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