Mendocino County Employee Health Benefit Program The Mendocino County Employee Health Plan, which provides benefits to

For several years the fund has operated with a deficit paid out of the general fund. During the mid-nineties, the County did not increase premiums because there was a freeze on wages. As a result, employee premium payments and County contributions did not cover expenses. Response (Risk Management): The Department agrees with this finding. Response (Board of Supervisors): The Board agrees with this finding.

In August 2000, the deficit was $1.7 million. The County has implemented measures to reduce the deficit, such as an 11.6% increase in both employee and County contributions. As of March 2001, the deficit had been reduced to $1.3 million. The Committee proposed a further increase in contributions. Response (Risk Management): The Department agrees with this finding. Response (Board of Supervisors): The Board agrees with this finding.

The consultant’s March 2001 report to the Board indicated that in comparable public employee health plans, single employees pay an average of 11% of their health plan premiums, and employees with dependents pay an average of 19%. In the County’s health plan, single employees are paying an average of 3% of their health care contribution, and employees with dependents are contributing an average of 23%. Response (Risk Management): The Department agrees with this finding. Response (Board of Supervisors): The Board agrees with this finding.

Any change in employee premium payments must be agreed upon by bargaining units through the meet and confer process. Response (Risk Management): The Department agrees with this finding. Response (Board of Supervisors): The Board agrees with this finding.

A review of vendor contracts shows a lack of performance requirements. Therefore, the Committee cannot effectively discharge one of its duties, which is oversight. Response (Risk Management): The Department disagrees in part with this finding because vendor contracts do have specific performance requirements listed in them. provided by the Risk Manager.

Only the consultant is contractually responsible for health plan vendor oversight and evaluation. Response (Risk Management): The Department disagrees with this finding. Risk Management currently reviews all contracts associated with the health plan for performance compliance. Response (Board of Supervisors): The Board agrees with the response provided by the Risk Manager.

The contract between the County and the consultant does not require competitive bids for the five health services contractors to the County. Response (Risk Management): The Department agrees with this finding. Response (Board of Supervisors): The Board agrees with this finding.

When seeking contractors, the County is at a disadvantage because the insurance base is small. Response (Risk Management): The Department agrees with this finding. Response (Board of Supervisors): The Board agrees with this finding.

The County’s Wellness Program strives to reduce health claims by educating employees about how and when to use their health benefits, as well as how to maintain a healthy lifestyle. Response (Risk Management): The Department agrees with this finding. Response (Board of Supervisors): The Board agrees with this finding.

Currently, the Plan offers no incentives to employees not to use their health benefits. Response (Risk Management): The Department disagrees with this finding. The Risk Management Department sends informational flyers to each employee discussing the advantages of leading a healthier lifestyle without utilizing health insurance. The Health Plan also offers preventative health benefits at 100% coverage. The County also has a wellness program to assist employees in leading healthier lifestyles. The Health Plan design offers different co-pays and deductibles in order to ensure that employees don’t over utilize their health benefits costing the plan more money. provided by the Risk Manager. The plan and its design offer many incentives to stay healthy.