ORDER NO.30637
2008 KERR COUNTY EMPLOYEES HEALTH INSURANCE BENEFITS
PLAN
Came to be heard this the 3rd day of December, 2007, with a motion made by
Commissioner Williams, seconded by Commissioner Oehler. The Court
unanimously approved by vote of 4-0-0 to:
Approve of the health insurance program, and issue the Contract to FARA, with
stop loss to Monumental Life, as proposed by our consultant, Gary Looney, in his
letter to the Court dated December 3, 2007, with all other recommendations
attached thereto.
3 b ~ 3 -7
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COMMISSIONERS' COURT AGENDA REQUEST
PLEASE FURNISH ONE ORIGINAL AND TEN (10) COPIES OF THIS
REQUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT
MADE BY: Judge Tinley OFFICE: County Judge
MEETING DATE: December 3, 2007 TIME PREFERRED:
SUBJECT: Consider, discuss, and take appropriate action to adopt Kerr County
Employees Health Benefits Plan for 2008, and establish employee/retiree contribution
rates for dependents and retirees.
EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON)
NAME OF PERSON ADDRESSING THE COURT: Judge Tinley /Gary Looney
ESTIMATED LENGTH OF PRESENTATION:
IF PERSONNEL MATTER -NAME OF EMPLOYEE:
Time for submitting this request for Court to assure that the matter is posted in
accordance with Title 5, Chapter 551 and 552, Government Code, is as follows:
Meeting scheduled for Mondays:
THIS REQUEST RECEIVED BY:
THIS RQUEST RECEIVED ON:
5:00 PM previous Tuesday
@ .M.
All Agenda Requests will be screened by the County Judge's Office to determine if adequate
information has been prepared for the Court's formal consideration and action at time of Court
Meetings. Your cooperation will be appreciated and contribute towards your request being
addressed at the earliest opportunity. See Agenda Request Rules Adopted by Commissioners'
Court.
Gary R. Looney, REBC
3201 Cherry Ridge Drive
Suite D 405
San Antonio, Texas 78230
Phone: (210) 930-6665 Fax: (210) 930-1838
Memorandum
Date
TO
From
RE
12/03/2007
Kerr County Commissioner's Court
Gary Looney REBC
Medical Plan Claims Administrator and Grou
Monday December 3, 2007 9:30 A M
Review of RFP responses for a Third Party Administrator for group medical and
associated services. Our recommendation is based on the following:
i. Fixed Cost
1. Specific and Aggregate Stop Loss Premiums
2. Administrative Charges
3. Increase exposure due to "Lasered" employees
4. HRA administration
5. FSA administration
6. Run off expenses
7. PPO Network
8. Web Based enrollment
9. Set up/Renewal Fees Maximum
10.Aggregate Attachment Points
ii. Variable Benefits; Variable Cost
1. PPO Network Savings
2. Communication Materials
3. Enrollment Materials
4. Added Value
5. Wellness incentives
6. Prescription Benefit Management initiative
7. Internet Initiative
Kerr County received seven total complete bids; the most received by the County in the
past years. The number of bids indicates that the County is viewed as an open market
opportunity. The original cost analysis prepared on behalf of the County was
determined to be invalid. The spreadsheet provided with this report is a result of the
"rebid".
As a result of the evaluation, I recommend that Kerr County contract with F.A.R.A
Administrators for the 2008 calendar year with two one year renewals pending the
proper performance of their duties as third party administrator and available County 3201 Cherry Ridge Drive
funding. sire DaoS
It is not necessary to change the active employee contribution levels for dependent San Antonio,Tezas78230
charges that are currently being deducted from their pay. However, I believe it important V210.930.6665
to address the premiums paid by retirees and their spouses. I recommend an increase f 210.930.1838
in the premiums paid by retired County employees. The contribution was to have
increased from $105 monthly to $125 monthly in 2007. The premium should be olamogrp@alamoinsgrp.com
increased to $135 monthly for 2008.
Term Life Recommendations
December 3, 2007
Memo to Kerr County Commissioner's Court
Page 2 of 2
In the past, the retiree and his spouse were able to be insured for the premium set for
the retirees. The premium for the spouse of a retiree should be equivalent to the
premium charged for active employee spouses.
1 recommend that all retirees currently insured be "grandfathered" at the rate used for
retirees and allow those currently retired to continue paying the retiree rate for their
spouse. That rate to be set at $135 for each retiree and each retiree's spouse. In the
future, a retired employee would pay the prevailing rate for a single retiree and the
spousal rate paid by an active employee.
I recommend the following changes for the medical plan.
1. Change the waiting period for new employees to provide that a new employee be
eligible for coverage on the first of the month following 60 days of employment.
2. Remove dependent pregnancies charge from coverage
3. Change the definition of dependent to require attendance at a college, trade
school or other qualified educations! institution from attained age of 19 to age 24.
The Mutual of Omaha group term life insurance and accidental death and
dismemberment plan which provides $20,000 of coverage for each active employee
under the age of 65 may be renewed at the current rate of $.20 base $.02 AD&D for
2008. The plan does not cover retired employees on the medical plan.
I appreciate your confidence in my efforts to provide the very best vendors and medical
plan for Kerr County and its employees.
Sincerely,

Gary R. Looney
Risk Management Consultant, REBC
glooney@alamoinsgrp. com
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DEC-OZ-2007 12:22 FROM-ENTRUST CORP, 281-368-7878 T-018 P.001/003 F-580
PHONB~ 281.368.7$78,EXT.11~ / FAX: 281.368-7828
FACSIMILE TRANSMI'Z'TAI. SHEET
Ta. PRCJM~
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Baldwin, William "Bill" Williams,
Jonathan Lenz, Bruce C>ehlex, Gary
Loonep, Don Wallace
COn~tt'ANY Pt+TL:
Herr County DECEMBER ?, 2007
f'R7C NUMIiF.R 'i0'S"A!_ NO. OF PAGE^"S INCLURINC COVER.
PHONE NuMBEH ^ ( 5FNA!?R'$ RFF1:Rf-:NCE NUMBER
RE; YOUR itEl+liR[NC~ Nl`MDGR:
Request far Proposal fox Health PLan
^ URGE?~iT C~ FOR RFVIEVV Q P1.EAS8 COMMENT ^ PLEASE REPLY Q Pl-BASE RECYCLE
Please make sure this letter is reviewed p>~ox to the Commi,siarter's Court Meeting regarding
the Health Insurance Program Agenda Item.
1~0 80?~ 440309
HOtJST4N, TX 77344-0309
DEC-02-2007 12:22 FROM-ENTRUST CORP, 281-366-7676
14701 St. Mary's Lane, Suite 150
Houston, TX 77079
December 2, 2007
The Honorable Pat Tinley
Kerr County fudge
700 Main
Kemille, Texas 78028
T-016 P.002/003 F-560
via facsimile and email
RE: Follow-Up ro Entrust J~esponse to the RFP Issued by Kerr County released TuesGiay,
pctaber 30, 2(!09 for Medical Stap-Loss, 7'I'A Services, Life Insurance & A~dtiD
Dear .fudge Tinley:
On behalf of Entrust, I would like to express cny appreciation to the Commissioner's Court, County Attorney, County
Staff, and Consultant for reissuing the bid for group health benefits in order to assure that all bidders receive "fair and
equal treatment" in consideration of their submitted proposals. Since healthcare decisions impact so many of your
employees and individuals in the community, the extra time spent assuring that each proposal is properly evaluated will be
highly regarded by all of those directly or indirectly affected.
Upon review of the originally submitted bids and based on the requested quoted enrollment, Enuusi feels confident we
have provided the most competitive proposed fixed cost (approx. $334,000), expected cost (approx. $1,684,754), and
maximum exposure (approx. $2,022,307). Additionally, we were able to minimize the risk on the two potential large
claimants by placing cone-time combined additional risk in the event health conditions are ongoing.
Entrust is committed to providing the County Staff with a high level of service as we currently have client service
representatives in your area on a regular basis. Qur commitment to Kerr County has already been demonstrated by our
aaendance at each Commissioner's Court meeting and separate meeting with your consultant. Ta further assure you of
our dedication, Entrust is in the process of researching the viability of establishing a local service office within the next
l2-months based on our current market activity.
Although the Request for Proposal did not indicate, in accordance with bid requirements, the use of a designated
insurance agent, Entrust was informed we were the only bidder who submitted a direct bid response net of agent
commissions as requested by the Commissioner's Court. Since a designated agent was not indicated as evaluation
criteria, Entrust feels our bid response is compliant. lrntrust believes the use of a designated agent should be a decision
made by the Commissioner's Coun. The requested commission structure is i0% of the monthly premium plus $2.pQ per
employee per month which equates to an approximate $2,800 monthly "based on our proposal. In the event the
Commissioner's Court requests the addition of these monies, Entrust will happily adjust these costs upon Commissioner's
Court approval after the contract has been awarded.
Should you hava any questions please contact me at your convenience via mobile phone at (713) 824-b678.
r~..~Best Regards,
',~ '~r~~ r ~ ~ ~ ,~J
David I.. Jacobson
Vice President of Marketing
J.,-.^" ~
~~~ Corporate Office P•o. Box a403o9 Naus~on, TX 772x4-4309 (28ti) 368-7878 Fax (281) 368-7828
• WreFP
DEC-02-2007 12:23 FROM-ENTRUST CORP, 281-368-7878 T-018 P.003/003 F-580
cc: H.A. "Buster" Baldwin, Kerr County Cammissioner, Precinct 1
William "Bill" Williams, Kerr County Commissioner, Precinct 2
Jonathan Letz, Kerr County Commissioner, Precinct 3
Bruce Qehler, Kerr County Commissioner, Precinct 4
Rex Brnerson, Kerr County Attorney
,Bwa Hyde, Kerr County Human Resources
Gary R. Looney, Alamo Insurance Group
Don Wallace, Wallace & Assaoiates
Brian Aavidson, ]intrust Sales Representative
Robyn Jacobson,l3ntrust, CQG and Compliance Officer