To: Board of Supervisors
From: Ann Elliott, Human Resources Director
Report Title: Contract Amendment for Consulting Services with Segal Consulting for the County’s Health and Welfare Benefit programs
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Human Resources Director, or designee, to execute a contract amendment with the Segal Group, Inc., to increase the payment limit by $136,000 to a new payment limit of $526,000 for health and welfare benefit consulting services and extend the term through February 28, 2027.
FISCAL IMPACT:
The cost of this contract is fully funded through the Benefits Administration Fee which is charged to the Departments.
BACKGROUND:
Segal Consulting’s contract was approved on February 28, 2023 in an amount not to exceed $390,000 to provide the County with consulting services for the Health and Welfare benefit programs, for the period March 1, 2023 through February 28, 2026, with two optional one-year renewals, pending approval to form by County Counsel.
Segal’s collective expertise and understanding of the County’s Health and Welfare benefit programs continue to provide data driven support for planning and communication of employee benefits including participants of the Joint Labor Management Benefits Committee.
The Segal Group, Inc, and its affiliates and subsidiaries, including the Segal Company (Western States), Inc. provides consulting services about benefit programs: 1) strategic review of all current health and welfare benefit programs including advice on industry best practices, trends and developments and benchmarking; 2) Benefits education and training to staff and committees as required by the County; 3) Technical review of all the County's employee benefits communications; 4) Negotiation of all annual vendor and insurance carrier renewals; 5) Actuarial services including budget projections; 6) Employee contribution strategies, Medicare Part D attestation, and reserve projections for self-funded plans; 7) Compliance assistance; 8) Employee benefits communications assistance; 9) Assistance with preparation of materials for labor negotiations; 10) Vendor management, including coordination of periodic meetings and resolution of service issues; 11) Negotiation and evaluation of Health Plan performance guarantees; 12) RFP preparation and evaluation of responses for all health and welfare benefit plans; 13) Attendance at meetings, presentations, negotiation sessions and formal presentations to the County Board of Supervisors; and 14) Monitoring utilization data.
This is the first of the two one-year renewal options negotiated under the contract.
CONSEQUENCE OF NEGATIVE ACTION:
If this extension is not approved, the County will not be able to access the expertise and support of Segal Consulting to assist the County in providing the most appropriate benefits to employees and maintain compliance with all applicable legal requirements.