Agenda

Return

D.12

To:	Board of Supervisors
From:	David Twa, County Administrator
Date:	June 11, 2019

Contra

Costa

County

Subject:

Resolution No. 2019/461 Teamsters Local 856 -modification of Medical, Dental, & Life Insurance

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 06/11/2019

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:	Lisa Driscoll, County Finance Director (925) 335-1023
cc:	Robert Campbell, Auditor-Controller Dianne Dinsmore, Human Resources Director All County Departments (via CAO)

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: June 11, 2019
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

ADOPT Resolution No. 2019/461, approving a side letter agreement, ratified on June 5, 2019, between Contra Costa County and Teamsters Local 856 to revise Section 19 - Medical, Dental, & Life Insurance of the current Memorandum of Understanding (July 1, 2016 - June 30, 2022).

FISCAL IMPACT:

The estimated plan year costs of the negotiated changes to healthcare subsidy use the same assumptions as those used for the Coalition Healthcare bargaining and costing. Those assumptions are: 2019 enrollment (1,471 covered members), no migration of plans (ie. used 2019 enrollment), an 8% medical inflation rate on plans other than Teamsters, for the Teamsters trust plan newly contracted medical inflation rates for the three year period, and a current comparable subsidy increase of 50% of the medical inflation rate (negotiated subsidy rate currently in place). Using these assumptions the estimated year-over-year plan year additional cost increases are $289,000 for plan year 2020, $624,000 for plan year 2021, and $886,000 for plan year 2022.

BACKGROUND:

This Side Letter arises out of a request by Teamsters to reopen its MOU with the County for the limited purpose of bargaining over healthcare following the approval on December 4, 2018, of an agreement on healthcare between the County and the Union Healthcare Coalition. Teamsters is not a member of the Union Healthcare Coalition.

The County and Teamsters reached a Tentative Agreement on healthcare for employees on May 14, 2019, which was ratified on June 5, 2019. In summary, the County and Teamsters agreed to modify one section of the MOU. All other terms and conditions of the MOU between the County and Teamsters (July 1, 2016 – June 30, 2022) remain unchanged. The following are highlights of the changes to Section 19 of the MOU:

Health, Life, & Dental Care

Beginning January 1, 2020, the County will provide a premium subsidy of up to 75% of the second lowest priced non-deductible/non-Teamsters HMO plan (currently Kaiser A) for Employee and Employee +1, and 76.5% for Employee +2 or more.
Beginning January 1, 2021, the County will provide a premium subsidy of up to 78.5% of the second lowest priced non-deductible/non-Teamsters-sponsored HMO plan for all tiers.
Beginning January 1, 2020, the County will provide a premium subsidy of up to 80% of the second lowest priced non-deductible/non-Teamsters-sponsored HMO plan for all tiers.
Beginning January 1, 2020, annual contributions into an HSA for active employees who are enrolled in an eligible High Deductible Health Plan and who have an HSA.
Expanded purview of the Joint Labor/Management Benefits Committee and clarification that Teamsters is not a member of the Union Healthcare Coalition.

CONSEQUENCE OF NEGATIVE ACTION:

Members will not receive the healthcare benefits agreed to in the tentative agreement between Teamsters and the County.