Medical Plan Discussion Update
Hello fellow SCEA members,
In an effort to keep the members who were unable to attend the medical plan discussions on Monday evening updated, here is our latest communication with the County. As always, if you have any questions or suggestions please contact me.
Thank you,
Phillip Crawford
President-SCEA
Shasta County Employees Association
530-262-1002
Dear Gage,
This will continue the meet and confer “reopener” process pursuant to MOU Article 11.4 J.
The SCEA has met and reviewed the County’s proposal and has developed a counter proposal.
Because the PERS Medical “open enrollment” window is fast approaching, we have decided to send the proposal to you electronically without waiting to schedule a meeting.
We would, however, appreciate a meeting be scheduled as soon as we can so that we can discuss this proposal, explain it in greater detail and answer your Team’s questions.
As you know, the changes that PERS is implementing in 2022 are unprecedented and have a multitude of impacts.
As folks like to say, “it’s complicated”.
Before I describe SCEA’s proposal, which I will later in this email, I wish to make a few comments that I intend will put our proposal in context of the discussions we have been having jointly and separately as we struggle with this challenging issue. These comments aren’t ranked in any order or priority. They simply come to mind as we discuss this situation.
The County is to be commended for developing a constructive proposal. We appreciate the effort and want to recognize that effort. Clearly, a lot of thought went into the County’s proposal.
We are negotiating in an environment of unprecedented recruitment and retention difficulties. As supervisors, we see firsthand the difficulty we are having with recruiting and retaining appropriate and competent employees. It has never been this bad of a situation, at least in the memories of those of us still here.
The negative effect of these recruitment and retention issues cannot be overstated. There has been a substantial negative effect on our collective ability as a workforce to deliver our services in the manner that the citizens we serve, deserve. We are working harder, with fewer human resources (employees) and it is affecting the quality of what we do.
If there is a way to turn this PERS Medical situation from being a problem into being a solution, we should seriously explore those possibilities.
There are employees who will be forced to choose the costly Platinum Plan because the Gold Plan has inherited the Select limited provider list, particularly specialty providers, and the Gold Plan doesn’t work for all employees or their family members. Tying the County contribution to Gold, at least for the Employee-Only group of participants, which is the majority, results in a reduction of $94.23/month in 2022 from what the County is paying in 2021. Although the Employee-Only participants in Gold are initially, for one year, covered at 100% of the Gold premium, this reduction in the County contribution for those employees compelled to choose Platinum exacerbates an already difficult situation. Employees in this situation will be paying $215.40 more per month including the $94.23/month reduction in the County’s contribution.
Retirees who have moved out of state have not been able to utilize the Select Plan, now Gold Plan, and will be forced into the Platinum Plan. The $94.23/month reduction in County contribution will hit them hard as it coincides with a 13% premium increase (Choice to Platinum).
Although the County would be agreeing temporarily to pay 100% of the Gold Plan premium, only for 2022, the 50/50 split in future years means it is only a matter of time before the County contribution slips below the 85% formula we negotiated so strenuously to accomplish. You will remember that the 85% Employee-Only formula was the key element to our recent settlement. The current 85% of Choice formula ($795.46) would potentially cover 100% of Gold ($701.23) for much longer than the County’s proposed formula. Perhaps for several years.
We understand that the reduction in the County’s Employee-Only contribution is partially offset by the County’s increase in Plus One and Family contributions. This puts us in a difficult and divisive situation with our members. Employees in Plus One and Family will be compelled, if they can, to opt to Gold coverage . Even with the County’s increase in contribution (90% of premium for 2022) this means that employees will be paying much more than they have been for Select. This is a difficult situation all the way around.
We believe that medical formula concessions directed toward the medical unfunded liability have helped reduce the unfunded liability on a faster track than originally forecast. This potentially frees up funds to be directed back toward the County medical contribution.
Tying the County contribution formula to what is now the least costly plan rather than the middle cost plan, even at a higher initial percentage (100%/90% for 2022) results in increased employee costs, sooner rather than later. We understand that plan design, plan offerings and plan premium structure are not influenced or decided by the County. PERS will do what PERS will do and we must deal with the consequences of their decisions. However, we are concerned that the County proposal, as reasonable as it might appear to be to some, will in fact make our current recruitment and retention problems worse. We will continue to lose ground as an attractive alternative our local competitors, Redding, Anderson, the State, schools and special districts.
Our goal is to use this medical plan/premium challenge as an opportunity to improve recruitment and retention!
It would be a noteworthy accomplishment, actually a significantly noteworthy accomplishment in our relatively small North State pool of job applicants, to offer fully paid medical insurance. This would help us immensely to compete against our local competitors for employees. We would stand out immediately as an attractive employer. The nearest other local County to offer fully paid medical is Siskiyou County (100% of the Gold premium).
Thank you for reviewing the above notes and concerns. Based on the totality of the circumstances, the SCEA makes the following proposal:
Effective beginning the 2022 premium year, the County agrees to contribute a dollar amount equal to 100% of the PERS Gold premium for Employee Only, Employee Plus One and Employee Plus Family for medical plan coverage. Employees choosing a more costly plan such as PERS Platinum will pay the cost difference.
We look forward to continued discussions with your Team.
Sincerely,
Steve Allen