The PBA has expressed our growing concerns about health insurance increases to the OCSO in many settings (ie. negotiations, one-on-one meetings, telephonic and email communications, etc.) We asked important questions about the health care issues and costs. Below are the OCSO's responses.

Please pay particularly close attention to their response to “question 10.” The PBA is obligated to its membership, as well as the rest of the employees in the two bargaining units, to insist that no change in terms and conditions of employment be unilaterally imposed without bargaining over said proposed changes. Specifically, we find it draconian for the OCSO to try to impose penalties on individual bargaining unit members because they choose not to participate in the Wellness Screening or Tobacco Cessation or to even require someone to sign an affidavit stating they are tobacco free.

We understand and support that it may be in an employee's best interest to be tobacco free and seeking wellness, but to impose sanctions on individuals is another issue altogether.

If Sheriff Demings insists on moving forward on these penalties or unilaterally imposing the penalties or insurance before the conclusion of the negotiation process, the PBA shall move forward, within the framework of the status quo contracts and relevant statutes to ensure that all of the bargaining unit employees are fairly and fully represented.

The PBA questions below are not all inclusive. Please be cognizant that PBA rep Don Doyle may not have been a party to all meetings that have taken place concerning health care and the related associated costs. Nor is Don’s attendance a waiver by the PBA to negotiate matters affecting the bargaining units' positions on Insurance Benefits.

On June 7, the OCSO gave PBA their Article 27 - Insurance Benefits proposal which substantially deviates from the current contract language. In order for the bargaining agent to formulate an informed response, the PBA is requesting that the following information be provided to us:

1. PBA: What additional cost, if any, did the Agency suffer for the new FY 2010/2011 health insurance plan?
OCSO: The agency is funded by various sources most of which ultimately comes from the citizens of Orange County. The agency only acts as the steward of this funding. With that said the agency was budgeted $7,900.00 per employee for FY09/10 and Fy10/11. To put this in terms of contributions, in 09/10FY Orange County contributed $16,018,141 and OCSO employees contributed $2,593,784.00 for a total cost of $18,611,926. In FY10-11 the agency again was budgeted $7,900.00 per employee for health care. The OCSO contributions will be $16,903,722 and the employee contributions will be $3,223,007 for a total cost of $20,126,729. The Sheriff’s Office will pay 84% of the cost of the employee health insurance costs.

PBA: If the Agency has not absorbed any increase to it - please state so. If the Agency has seen a cost increase, please break-up your response to include the total cost of the increase; as well as the increase per employee. If there are different increases due to age or position, please identify this also.
OCSO: There is not a cost difference based on position or age. Employee biweekly premiums are based on plan selection and coverage level (single, employee + spouse, employee + children, employee + family)

2. PBA: What are the reasons that the HMO plan was dropped?
OCSO: The HMO plan design and premium did not support the costs associated with the plan.

3. PBA: Why was the HMO option not presented to the PBA with a cost attached?
OCSO: The HMO plan was not a consumer driven plan design.

4. PBA: Did the Agency do a request for proposal (RFP) or test the market for other options?
OCSO: An RFP was not done.

5. PBA: What is the current cost of claims to date?
OCSO: See attached spread sheet.

6. PBA: What reserves are there currently to pay the 09 Insurance claims?
OCSO: The Orange County Sheriff's Office, Actuarial Report for the Self Insured Health Plan ending September 30, 2009 showed a contingency reserve of $2,173,702.00.

7. PBA: It is our understanding that the Sheriff accepted the County's allocation of $7,900 per employee (no increase from the current year), while the County has increase the allocation to its employees to $8,300. Did the Sheriff request from the County the additional $400 per employee?
OCSO: The agency submitted its budget request prior to learning that the county allocated $8,300.00 for its employees. Although the county expected the Sheriff to decrease his budget by 5-7% the Sheriff submitted a status quo budget which included the $7,900.00 per employee for health care costs. After submitting the budget the Sheriff negotiated with the county a 3% decrease in the budget. Although the overall budget was reduced by 3% the Sheriff elected not to decrease health care funding for employees by 3% thus minimizing any increases.

8. PBA: What amount of money, is the Sheriff proposing to give to each employee to assist in the HRA cost?
OCSO: $550.00

9. PBA: Who recommended to the Sheriff to adopt the changes in benefits and additional cost to employees? If it was UHC or other outside company, or if it was the internal insurance committee, please state so.
OCSO: Recommendations on how to deal with our rising health care cost and claims came from Wells Fargo Consultants who worked with Director Margeson, Assistant Director Rye, Captain McKinley, and PBA representative Don Doyle.

10. PBA: Will any incentives, such as wellness or fitness standards, be offered to employees and dependents? And if so, what are the incentives.
OCSO: Employee will be given the option to participate in the wellness screening again this year. This will include a blood draw (finger stick in lieu of full blood draw), UHC on-line health risk assessment, and one OCAT test for sworn employees. Employees not completing the wellness screening will be have to pay a surcharge of $25.00 per pay period for not participating. Employees will also be required to be tobacco free after October 1, 2010 and will have to sign an affidavit stating they are tobacco free. Those employees failing to sign the affidavit or refusing to be tobacco free will be assessed a $25.00 per pay period surcharge.

11. PBA: When is new enrollment scheduled for?
OCSO: The final dates for enrollment are being finalized. The proposed dates are July 15th - August 20th.

12. PBA: When is the desired date for implementation?
OCSO: Plan changes are effective October 1, 2010.