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Approve a 1 year contract for the provision of health, dental, and vision benefits for eligible In-Home Supportive Services (IHSS) providers between the Solano County IHSS Public Authority and Pan American Life Insurance Group for $3,616,242 for FY2019/20, with an option for annual renewal; and Authorize the Public Authority Administrator to execute the contract
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Published Notice Required? Yes___ No_X__
Public Hearing Required? Yes___ No_X__
DEPARTMENTAL RECOMMENDATION:
The In-Home Supportive Services Public Authority recommends the Board of Supervisors Approve a 1 year contract for the provision of health, dental, and vision benefits for eligible In-Home Supportive Services (IHSS) providers between the Solano County IHSS Public Authority and Pan American Life Insurance Group for $3,616,242 for the FY2019/20, with an option for annual renewal; and Authorize the Public Authority Administrator to execute the contract.
SUMMARY/DISCUSSION:
The Solano County IHSS Public Authority (IHSS-PA) serves as the employer of record for negotiations and provision of benefits to over 5,000 eligible Solano County IHSS providers. As part of the Memorandum of Understanding between the IHSS-PA and IHSS provider employee organization, SEIU 2015, IHSS providers working more than 65 hours per month are eligible to receive a benefits plan including health, vision, dental, and prescription coverage. In Solano County, there are more than 1,800 IHSS providers eligible for this benefit, and 1,280 have enrolled in the health plan provided through contracted vendor Symetra Life Insurance Company (Symetra). The current cost of the plan is $207.83 per month per enrollee, with the IHSS-PA covering the entire cost (no premiums are paid by the enrollee).
Symetra sent notice to the IHSS-PA on March 27, 2019 informing the IHSS-PA that the insurance coverage they were providing would no longer be offered or renewed in the State of California effective June 30, 2019. The IHSS-PA informed SEIU 2015 of the termination of the health plan and, as authorized by the IHSS-PA Board, met and agreed on an alternate health plan through vendor Pan American Life Insurance Group (PALIG) that offers very similar coverage to the current plan at the same rate as the Symetra Plan. An Amendment to the current Memorandum of Understanding (MOU) between the IHSS-PA and SEIU 2015 was signed to provide Pan American health, vision and dental insurance to eligible providers in lieu of Symetra Health, Vision, and Dental Insurance. The cost of this alternate plan remains $207.83 per enrollee per month through June 30, 2020.
Authorization is requested for the Public Authority Administrator to enter into a one-year contract between the IHSS-PA and PALIG for the provision of health, dental, and vision benefits for eligible IHSS providers for a maximum of $3,616,242 for the FY2019/20, with option for annual renewal. The current MOU with SEIU 2015 expires June 30, 2020 and, should a successor agreement result in the continued provision of this plan, the option to pursue a renewal would provide for a seamless and expeditious process.
FINANCIAL IMPACT:
The current County IHSS Maintenance of Effort (MOE) requirement includes the following components: Services, County Administration, Public Authority Administration and Case Management, Information, and Payrolling System (CMIPS). The County share of costs of health, dental and vision benefits for eligible IHSS providers is included in the Services component of the IHSS MOE. Under the existing IHSS MOE structure, the State would pay the difference between the MOE and the non-federal share of IHSS Services. The estimated County IHSS MOE for Services of $15,370,587 is included in the FY2019/20 Recommended Budget and is funded with County General Fund and 1991 Realignment.
ALTERNATIVES:
The Board can choose not to authorize the Public Authority Administrator to enter into this contract between the IHSS-PA and PALIG; this alternative is not recommended as it will impact up to 1,280 IHSS providers enrolled in the plan.
OTHER AGENCY INVOLVEMENT:
None.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION