To: Board of Supervisors
From: Ann Elliott, Human Resources Director
Report Title: Contract extension of ASA with Magellan Healthcare, Inc. to provide County employees access to the Employee Assistance Program
Recommendation: Recommendation of the County Administrator
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Human Resources Director, or designee, to execute a contract amendment with Magellan Healthcare, Inc. and Magellan Health Services of California, Inc, to increase the payment limit by $205,000 to a new payment limit of $800,000 and to extend the term from January 1, 2027, through December 31, 2027, to continue providing Employee Assistance Program services.
FISCAL IMPACT:
The administration costs for the Employee Assistance Program are fully funded through the Worker's Compensation Internal Service Fund.
BACKGROUND:
Magellan is the County’s current Employee Assistance Program (EAP) provider and is licensed to provide such services in accordance with the Knox-Keene Act.
The current contract was approved by the Board on January 17, 2023, with a payment limit of $420,000 (C. 34). The first contract extension from January 1, 2026, through December 31, 2026, increased the payment limit by $175,000 and was approved by the Board on December 9, 2025 (C.105).
As the County’s EAP provider, Magellan provides mental health services such as counseling and therapy to employees and their families. The company has more than 50 years of industry experience and long-term, stable subcontract relationships with work/life and legal service providers.
Magellan provides 24/7 personal telephonic consultation services and up to six counseling or therapy sessions per problem for employees and their families. Calls to its 800 number are answered live by master's-level EAP clinicians. Additional services included under the Agreement include: 1) work/life services, which include assessment and referral for services such as child care, elder care, and adoption services, in addition to personal convenience services such as home or auto repair and pet care; 2) legal and financial consultation services, including a free initial consultation and discounts on participating legal or financial providers; 3) management consultation for employee referrals to EAP; 4) Critical Incident Stress Management services; 5) wellness seminars and training specifically to assist supervisors in utilizing the EAP; and 6) full access to the Magellan website which includes interactive self-improvement programs and self-assessment tools, health and workplace topics for organizations, and other employee resources.
This is the last of the two successive one-year extensions. Additionally, the contract requires the County to indemnify Magellan in various circumstances.
CONSEQUENCE OF NEGATIVE ACTION:
If this extension is not approved, the County will be unable to offer the Employee Assistance Program until a contract with an EAP vendor is approved and employees will not have access to the services provided by Magellan Healthcare, Inc.