Memorandum
Date: July 9, 2024
To: The Honorable Lake County Board of Supervisors
From: Pam Samac - Human Resources Director
Susan Parker, County Administrative Officer
Subject: a) Consideration of medical carrier change from Anthem Blue Cross to BlueShield with the PPO Navigator; and b) Consideration of dental carrier change from Delta Dental to Ameritas
Executive Summary:
The Benefits Committee, comprised of representatives from various union members, has conducted a thorough review of our current healthcare benefits. After extensive analysis, provider capabilities, and cost considerations, the committee has identified opportunities to enhance our healthcare offerings through a change in carriers.
Staff recommends approval of a change in our current medical and dental carriers for the benefit of our employees and the organization, based on the deliberations and findings of the Benefits Committee. The Benefit Committee met on June 12, 2024, and voted to make the following changes from Anthem Blue Cross to Blue Shield with PPO Navigator and to change our dental carrier from Delta Dental to Ameritas following changes for the 2025 plan year, pending Board Approval.
The Benefits Committee recommends the following changes be implemented.
Medical Carrier: Transition medical coverage from Anthem Blue Cross to Blue Shield, utilizing their PPO Navigator. The County will experience no rate change with this transition; rates will remain consistent with the Anthem renewal and benefits will remain unchanged. Blue Shield is recognized for its strong network adequacy, competitive pricing, and commitment to quality healthcare delivery. Their PPO Navigator program has received positive feedback from similar organizations, aligning well with our organizational goals.
2025 Medical Renewal
|
Medical Provider |
% Increase |
Annual Increase |
|
Current Anthem PPO 80 |
9.3 % |
$850,104 |
|
Change to Blue 80 Shield PPO w/ Navigator |
|
|
|
|
|
|
|
Change to Blue Shield PPO w/ Navigator |
|
|
|
Current Anthem PPO Law Enforcement |
|
|
|
Change to Blue Shield PPO Law Enforcement w/ Navigator |
|
|
|
Current Anthem HSA Bronze |
|
|
|
Change to Blue Shield HSA Bronze w/ Navigator |
|
|
Dental Carrier: Move our dental coverage from Delta Dental to Ameritas. Ameritas, out-of-network dentists will be paid based on the 90th percentile of usual and customary rates (what 9 out of 10 dentists charge in the area).
Most dentists will bill the insurance directly, so employees typically won't need to pay upfront. Additionally, Ameritas offers additional Dental Rewards that employees can earn by using annual preventive cleaning services.
2025 Dental Renewal
|
Dental Provider |
% Increase |
Annual Increase |
|
|
|
|
|
|
Both carriers offer expanded benefits that better address the healthcare needs of our workforce. The proposed carriers have presented cost-effective solutions that will help manage healthcare expenditures without compromising quality. Employees will experience improved access to care, streamlined administrative processes, and responsive customer service.
If not budgeted, fill in the blanks below only:
Estimated Cost: ________ Amount Budgeted: ________ Additional Requested: ________ Future Annual Cost: ________
Purchasing Considerations (check all that apply): ☐ Not applicable
☐ Fully Article X. <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI>- and/or Consultant Selection Policy <http://lcnet.co.lake.ca.us/Assets/Intranet/Policy/Policies+$!26+Procedures+Manual/Ch4_2021v2.pdf>-Compliant (describe process undertaken in “Executive Summary”)
☐ Section 2-38 <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI> Exemption from Competitive Bidding (rationale in “Executive Summary,” attach documentation, as needed)
☐ For Technology Purchases: Vetted and Supported by the Technology Governance Committee <http://lcnet.co.lake.ca.us/Assets/Intranet/Intranet+Forms/Information+Technology/AdvPlan.pdf> (“Yes,” if checked)
☒ Other (Please describe in Executive Summary)
Consistency with Vision 2028 <http://www.lakecountyca.gov/Government/Directory/Administration/Visioning/Vision2028.htm> (check all that apply): ☐ Not applicable
☐ Well-being of Residents ☐ Public Safety ☐ Disaster Prevention, Preparedness, Recovery
☐ Economic Development ☐ Infrastructure ☒ County Workforce
☐ Community Collaboration ☐ Business Process Efficiency ☐ Clear Lake
Recommended Action:
(a) Approve medical carrier change from Anthem Blue Cross to BlueShield with the PPO Navigator.
(b) Approve dental carrier change from Delta Dental to Ameritas.