FROM: James D. Herberg, General Manager
Originator: Celia Chandler, Director of Human Resources
SUBJECT:
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2021 BENEFITS INSURANCE RENEWAL
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION: Recommend to the Board of Directors to:
Approve the Orange County Sanitation District 2021 Benefits Insurance Renewal for the amount of $12,953,965 for active employees and $958,858 for retiree-paid health premiums, for an overall not-to-exceed amount of $13,912,823, as specified below:
A. WORKTERRA (medical, dental, and vision plans; and Employee Assistance Program [EAP]) - Not to Exceed $12,184,838;
B. Prudential (basic life, short- and long-term disability) - Not to Exceed $718,480;
C. The Standard (EMT & Manager disability) - Not to Exceed $30,000;
D. BenefitWallet (Health Savings Accounts [HSA]) - Not to Exceed $20,647;
E. WORKTERRA (additional retiree costs, recouped from retirees through premium payments) - Not to Exceed $958,858; and
F. Approve a contingency of $695,641 (5%).
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BACKGROUND
In accordance with collective bargaining agreements, the Orange County Sanitation District (Sanitation District) 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. HR met and conferred with the unions to secure all benefit changes, as applicable.
* 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).
The Sanitation District, in conjunction with the health insurance broker, Allia...
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