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Home My WebLink AboutResolution 03-162-CCBOARD OF COUNTY COMMISSIONERS Grant County, Washington RESOLUTION AUTHORIZING ) IMPLEMENTATION OF A SELF-INSURANCE ) PROGRAM FOR GRANT COUNTY'S GROUP ) EMPLOYEE MEDICAL INSURANCE PLAN ) AND, OTHER MATTERS PROPERLY ) RELATING THERETO. ) Recitals: RESOLUTION No. 03 -$1 -CC WHEREAS, pursuant to chapter 48.62 RCW, local government entities, including Grant County, have the authority to establish individual, local government, self-insured employee medical insurance programs; and WHEREAS, the Board of County Commissioners (`BOCC"), as the duly elected governing body of the Grant County. is the "governing body" of Grant County within the contemplation of chapter 48.62 RCW; nd WHEREAS, Grant County currently participates in a fully insured group employee medical insurance program through Premera Blue Cross, Inc. ("Premera"); and WHEREAS, the current contract with the aforementioned insurance provider expires on December 31, 2003; and WHEREAS, Marsh Advantage America ("Marsh") is Grant County's broker of record for Grant County's health insurance program. Grant County retained Marsh to provide, inter alia., professional analysis of the feasibility of the creation and management of a self-funded, employee medical insurance program, including without limitation, recommended reserve levels; and WHEREAS, Grant County currently participates in a fully insured group employee medical insurance program. The current one-year contract with the insurance provider (Premera/Blue Cross) for this fully insured group insurance program expires on January 1, 2004; and WHEREAS, the Grant County Insurance Committee (the "Committee") comprised of both bargaining unit and salary grade Grant County employees, was formed to assess and evaluate current health insurance industry trends and market factors, including claims utilization and cost information. The role of the Committee was to determine and recommend to the BOCC the most beneficial and cost effective plan design for Grant County's self-insurance plan year beginning January 1, 2004. A component of this assessment included review and consideration of various funding models, including the current fully insured model as well as a self-insured RESOLUTION AUTHORIZING IMPLEMhNTA71ON OI' A SELF-INSURANCL PROGRAM FOR EMPLOYEE MEDICAL INSURANCE Page 1 of N T-1 ASM-R\Resolutions\Self Insurance Pio6�tin. Med�wl (No.rn�ber 200]) doc model. The Committee concluded that a self-insured model would be more cost effective and provide more advantages than a fully insured model, including more Grant County control over plan administration, lower administrative charges by the insurance company, fewer state regulatory impacts, and elimination of the state premium tax; and WHEREAS, Marsh has provided the Board of County Commissioners and Grant County with its professional opinion that a self-insured, employee medical insurance program would be more cost effective and provide more advantages to Grant County and its officers, officials and employees, than a fully insured model, including more control over plan administration, lower administrative charges by the insurance company, fewer State regulatory impacts, and elimination of the State premium tax; and WHEREAS, the Board of County Commissioners has found and determined that a self- insured, employee medical insurance program would be more cost effective and provide more advantages to Grant County and its officials, officers and employees, than a fully insured model, including more control over plan administration, lower administrative charges by the insurance company, fewer State regulatory impacts, and elimination of the State premium tax; and WHEREAS, Grant County requested that Marsh provide a professional analysis of the feasibility of creation and maintenance of the program including recommended reserve levels. Reserves are establisheu to guarantee coverage for claims that may exceed predicted claim costs and to cover claims in the event of plan termination. An initial reserve balance of $2 million was recommended and the Committee agreed with this recommendation; and WHEREAS, RCW 48.62.031 provides local governments the authority to contract with third parties to provide risk management, claims and administrative services. The Committee recommends that a third party administrator be hired to administer the self-insured program. Quotes have been solicited and obtained from multiple service providers as part of a competitive selection process in compliance with WAC 236-22-038. The Committee recommends that Grant County continue to utilize Premera/Blue Cross in the role of third party administrator to ensure both continuity of claims administration processes and the ongoing availability and utilization of the doctor and medical facility/provider network by Grant County employees; and WHEREAS, current Grant County fund balances are adequate to fully fund all reserve accounts for a self-funded program; and WHEREAS, Grant County created a management and operation plan for its self-insured employee medical insurance program, containing statutorily required information consistent with the Washington State Risk Manager's adopted rules. Grant County's plan was provided to the Washington State Risk Manager and the Washington State Auditor's Office; and WHEREAS, Grant County obtained the written approval of the Washington State Risk Manager for its plan of management and operation of its self-insured employee medical insurance program, containing statutorily required information and, the Washington State Risk Manager's adopted rules; and RESOLUTION AUTHORIZING IMPLEMENTATION OF A SELF-INSURANCI PROGKAM FOR EMPLOYEE MEDICAL INSURANCE. Page 2 of 4 11\Ciml 8\M-R\ResoWOons\Self ln,.,. a P,o,— Wd.eM(N.-.mbn 2005) dna WHEREAS, Grant County has provided the Washington State Auditor's Office with a copy of its plan of management and operation of its self-insured employee medical insurance program, containing statutorily required information consistent with the Washington State Risk Manager's adopted rules; and WHEREAS, the Washington State Risk Manager and chapter 48.62 RCW require that each local government pass and adopt a resolution authorizing the establishment of a self-insured employee medical benefit program. NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF GRANT COUNTY, WASHINGTON, as follows: Section 1: The Board of County Commissioners found and determined that a self-insured employee medical insurance program would be more cost effective than Grant County's current program for the provision of medical benefits to Grant County officials, officers and employees, than a fully insured model. Section 2: The Board of County Commissioners found and determined that a self-insured employee medical insurance program would provide more advantages to Grant County and its officials pfficers and employees, than a fully insured model, including without limitation. -nore control aver plan administration, lower administrative charges by the insurance company, fewer State regulatory impacts and, elimination of the State premium tax.. Section 3: Grant County created a management and operation plan for its self-insured employee medical insurance program, containing statutorily required information and consistent with the Washington State Risk Manager's adopted rules. Section 4: Grant County has obtained the written approval of the Washington State Risk Manager of its plan of management and operation of its self-insured employee medical insurance program, containing statutorily required information and consistent with the Washington State Risk Manager's adopted rules. Section 5: Grant County has provided the Washington State Auditor's Office with a copy of its plan of management and operation of its self-insured employee medical insurance program, containing statutorily required information and consistent with the Washington State Risk Manager's adopted rules. Section 6: The Board of County Commissioners or its designee, is hereby duly authorized to execute the necessary documents to implement the self-insured employee medical insurance program for Grant County, effective January 1, 2004. Section 7: The Grant County Board of Commissioners, or its designee, is hereby authorized to take necessary action to implement the self-insured employee medical insurance program for Grant County, and, administer, manage and operate same RESOLUTION AUTHORIZING IMP LEMIXI ATION OF A SELF-INSI IRANCL PROGRAM FOR EMPLOYEE MEDICAL INSURANCE Page 3 of 4 11 AGm18\M-RNR,,oI.wnASW I--- P,., ee, Muh-I (N.—hu 2W l) d- Section S: The Grant County Board of Commissioners, or its designee, is hereby authorized to prepare, file and otherwise disseminate the necessary documents for Grant County to administer, manage and operate its self-insured employee medical insurance program for Grant County, including without limitation, filing the annual report with the Washington State Risk Manager and the Washington State Auditor's Office, containing statutorily and regulatory required elements. Section 9: The Grant County Treasurer is authorized to establish and maintain a dedicated claim payment fund and to dedicate reserve funds for the self-insured medical program. Section 10: The Board of County Commissioners, or its designee, is hereby authorized and directed to execute any and all documents necessary to purchase excess loss insurance for the self-insured medical program to be effective January 1, 2004, to protect against catastrophic Losses. Section 11: The Board of County Commissioners, or its designee, is hereby authorized and directed to execute any and all documents necessary to contract with Rehn & Associates as third party administrator to perform the claim administration and related services for the self-insured medical program effective January 1, 2004. PASSED AND ADOPTED by the Board of County Commissioners of Grant County, Washington, on December IS , 2003. BOARD OF COUNTY COMMISSIONERS GRANT COUNTY, WASHINGTON Abstain Ayes Nays El [2 0 De7Mborah'f'vKay ❑ ❑ LeRoy C. ❑ E ❑ Tim Snea TEST: G U rvella R. Fields, Clerk of the Board RESOLUTION AUTHORIZING IMPLEMENTATION OF A SELF-INSORANC'I, PROGRAM FOR EMPLOYEE MEDICAL INSURANCE Page 4 of 4 H \Civil S\M R\Reralraoni Insurance Piogiam Medical (Novenu-2003) doc STATE Of WASHINGTON OFFICE OF FINANCIAL MANAGEMENT DIVISION OF RISK MANAGEMENT 301 General Administration Bldg., PO Sox 41027. Olympia, WA 98504-1027 - Fax (360) 586-1789 http://wwW.ofm. wa.gov December 4, 2003 William L. Varney County Auditor Grant County P.O. Box 37 Ephrata, WA Dear Mr. Varney: Thank you for the well organized application for approval of your self-insured employee medical benefit program. We have reviewed the materials and approved your program. Our office is responsible for statewide oversight of local government self-insurance programs. Programs are subject to the statutory provisions of RCW 48.62 and the administrative rules of WAC 236-22. An advisory board appointed by the Governor assists us. Together with the board, we have developed several guidelines to clarify these rules. These are on our web site www.ofin.wa.gov/rmd/lgsi.htm. Programs provide annual financial reports within 120 days of fiscal year close. You will be sent a letter with a report form in January after the first program year. Most programs submit their reports on line at the above site page. State statute requires this program charge for expenditures related to performing oversight responsibilities according to a formula approved by the advisory board. Invoices are issued during July and January. The costs associated with the review of new program applications and also on site examinations are invoiced separately. Enclosed is the invoice for application review and approval. The first invoice for your program share of oversight costs will be sent in July 2004. Should you have any questions or comments, please contact me at 360.902.7311 or Don Johnsen at 360.902.7308., We look forward to working with you in the future. John C. Nicholson Local Government Self Insurance Program Administrator Enclosure cc Mark H. Patrick, Marsh Spokane 0