HomeMy WebLinkAboutResolution 04-004-CCBOARD OF COUNTY COMMISSIONERS
Grant County, Washington
RESOLUTION AUTHORIZING RESOLUTION No. 04- 00d -CC
IMPLEMENTATION OF A SELF-INSURANCE
PROGRAM FOR GRANT COUNTY'S GROUP
EMPLOYEE MEDICAL INSURANCE PLAN AND,
OTHER MATTERS PROPERLY RELATING
THERETO.
WHEREAS, Grant County passed resolution number 03 -162 -CC on December 15, 2003
titled, "Resolution authorizing implementation of a self-insurance program for Grant County's
group employee medical insurance plan and, other matters properly relating thereto", this
resolution is hereby repealed in its entirety; and
WHEREAS, resolution 03 -162 -CC is repealed in its entirety to correct a scrivener's
error which incorrectly listed the third party administrator as Rehn & Associates, when the third
party administrator is Premera/Blue Cross; and
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; and
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
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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
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 established 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
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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
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, officers and employees, than a fully insured model, including without limitation, more
control over 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.
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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.
Section 8: 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 Premera/Blue Cross as third
party administrator to perform the claim administration and related services for the self-insured
medical program effective January 1, 2004.
Section 12: Effective immediately Grant County resolution number 03 -162 -CC is hereby
repealed in its entirety to correct a scrivener's error.
DATED this /Z day of January, 2004.
Yea Nay
Q' ❑
ATTEST: R ❑
Clerk of the Board
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BOARD OF COUNTY COMMISSIONERS
Abstain GRANT COUNTY, WASHINGTON
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