OF STANISLAUS

DEPT: Communlty Servlces Agency BOARD AGENDA# *B-2 -

Urgent Routine AGENDA DATE February 14,2006 - CEO Concurs with Recommendation YES @NO 415 Vote Required YES NO

(Infor abon Attached)

SUBJECT

Approval to lssue a Request for Proposal for an lnsurance Broker for Link2Care the In-Home Supportive Service Public Authority of Stanislaus County

STAFF RECOMMENDATIONS:

1. Authorize the Purchasing Agent to lssue a Request for Proposal on behalf of Link2Care the In-Home Supportive Services Public Authority of Stanislaus County to solicit proposals for an lnsurance Broker.

2. Authorize the Executive Director of the In-Home Supportive Services Public Authority of Stanislaus County to select an lnsurance Broker for an initial three-year period and two additional years on a year-by- year basis for a total of five years

-- FISCAL IMPACT:

The fiscal impact of this item is dependent upon which lnsurance Broker is selected for service. Traditionally, lnsurance Brokers charge the insurance companies (carriers) a fee, either a flat fee or percentage of the business the Broker brings to the insurance company. The Link2Care the In-Home Supportive Services Public Authority of Stanislaus County does not pay a direct fee to the Insurance Broker; rather the cost of the insurance includes the Broker's fee or commissions.

(Fiscal Impact continued on Page 2)

BOARD ACTION AS FOLLOWS: NO. 2006-95

On motion of Supervisor _--__ Gr?v_e_r_ r_r_r_r_r_r_r_r_r_r_r_r_r_r_r_r_r_r_. , Seconded by Supervisor -___ 'ayfjeld and approved by the following vote, Ayes: S u p e ~ i s o r s : ~ Q ~ ~ i ~ _ n ~ ~ M ~ y f i ~ 1 ~ ~ ~ ~ r ~ _ v ~ 1 . ~ ~ e _ M _ a ~ ~ n i ~ a _ n d ~ ~ ~ ~ i r _ m a n ~ S i m o n ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ . . ----------- Noes: Supervisors:-NO_~~ _e_e_e_e_e_e_e_e_e_e_e_e ._e_e_e_e_e_e_e ._e_e_e_e_e_e . . _e_e_e_e_e . . _e_e_e_e -~~ - - -~~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Excused or Absent: S U ~ ~ N ~ S O ~ S : N Q O ~ -------------.------.--------------------------------------------------- . . Absta~nlng: Supe~isor :N~t Ie -----------.--------.------.---------------.-------------------------------------

I) X Approved as recommended 2) Denied 3) Approved as amended 4) Other: MOTION:

J CHRISTINE FERRARO TALLMAN, Clerk ATTEST: File No.

Approval to Issue a Request for Proposal for an Insurance Broker for Link2Care the In- Home Supportive Service Public Authority of Stanislaus County Page 2

FISCAL IMPACT (CONT'D):

The Link2Care the In-Home Supportive Public Authority of Stanislaus County is subject to a State approved maximum rate of $.60 per paid hour multiplied by the number of In- Home Supportive Services Individual Provider paid hours. Costs of medical premiums will determine how many In-Home Supportive Services individual providers can be covered by insurance.

The current level of medical premiums budgeted is $2.7 million based on the midyear estimate of 4.5 million paid hours for In-Home Supportive Services Individual providers at $0.60 per hour. Appropriations and revenues are included in the Community Services Agency's Fiscal Year 200512006 Final Budget for Fund 1641. The county cost for this service is approximately $670,000 which has been included in the Community Services Agency's Fiscal Year 200512006 Final Budget for Fund 1631 - Program Services and Support. Therefore, there are no anticipated additional County costs associated with this action.

DISCUSSION:

Since May 1, 2005, the In-Home Supportive Services Public Authority of Stanislaus County, hereafter referred to as Link2Care, has provided health insurance for eligible In- Home Supportive Services (IHSS) Providers. On March 31,2006, the current insurance year will expire and new contract year will begin with the current insurance carrier. With the new contract year comes an increased rate if we remain with the current insurance carrier. In late November 2005, the Broker of Record closed its offices in San Diego and Link2Care was left without an active Broker. At that time, Link2Care appointed a new Broker on an interim basis pending the awarding of this Request for Proposal (RFP). The awarded Insurance Broker will negotiate with insurance carriers to get the optimum package at the lowest cost.

As mentioned in the Fiscal Impact section, the selection of a Broker will determine not only the costs of insurance but the insurance carrier for the next insurance year. The Broker would negotiate its best rate with the current carrier as well as competing carriers. Depending upon the plan and rate offered a new insurance carrier could be selected.

The price of the insurance is an important factor as it determines how many Providers can receive health insurance. The Memorandum of Understanding with the United Domestic Workers of America specifies that the County will contribute up to $0.60 per paid hour towards health insurance. Each month Link2Care receives information from the State specifying the amount of paid hours of the IHSS Individual Providers. These paid hour multiplied by $0.60 per hour determines how much money is available to purchase health insurance for IHSS Providers. The lower the cost of the insurance the greater population that can be insured; therefore, it is critical to keep the rate as low as possible.

Approval to Issue a Request for Proposal for an Insurance Broker for Link2Care the In- Home Supportive Service Public Authority of Stanislaus County Page 3

This item asks for authorization to select a Broker for multiple years. Retaining one Broker for multiple years is critical and will allow the development of a long term insurance strategy to deal with ever increasing insurance costs in a predictable manner.

POLICY ISSUE:

Approval of this RFP will allow Link2Care to select an Insurance Broker and develop a long term strategy to deal with insurance costs. This item is consistent with the Board of Supervisors' priorities of a healthy community and efficient delivery of public services.

STAFFING IMPACT:

There is no staffing impact associated with this item