FROM: James D. Herberg, General Manager
Originator: Celia Chandler, Director of Human Resources
SUBJECT:
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2023 BENEFITS INSURANCE RENEWAL
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION:
Approve the Orange County Sanitation District 2023 Benefits Insurance Renewal for the amount of $12,387,614 for active employees and $1,559,844 for retiree-paid health premiums, for an overall not-to-exceed amount of $13,947,458, as specified below:
A. WORKTERRA (medical, dental, and vision plans; and Employee Assistance Program [EAP]) - Not to Exceed $11,827,618;
B. The Standard (basic life, short- and long-term disability) - Not to Exceed $488,596;
C. The Standard (EMT & Manager disability) - Not to Exceed $30,000;
D. BenefitWallet (Health Savings Accounts [HSA]) - Not to Exceed $41,400;
E. WORKTERRA (additional retiree costs, recouped from retirees through premium payments) - Not to Exceed $1,559,844; and
F. Approve a contingency of $697,373 (5%).
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BACKGROUND
In accordance with collective bargaining agreements, the Orange County Sanitation District (OC San) has a contractual obligation to provide healthcare and welfare insurance benefits to employees and eligible dependents.
Over the years, Human Resources (HR) has implemented ongoing cost-containment measures to include: joining a risk-sharing pool under Public Risk Innovation, Solutions, and Management (PRISM)*, making plan design changes to align with best practices, bundling insurance coverages, and negotiating rate guarantees.
* In June 2020, California State Association of Counties - Excess Insurance Authority (CSAC-EIA) officially rebranded and changed their name to Public Risk Innovation, Solutions, and Management (PRISM).
OC San, in conjunction with the health insurance broker, Alliant, began the renewal process for the agreed to benefits in April and received quotes in June. After negotiating with the insurance carriers...
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