DATE: December 5, 2017
SUBJECT:
Title
RESOLUTION AUTHORIZING THE DISTRICT TO GRANT INDEMNITY TO OPTUM BANK, INC. PURSUANT TO AN AGREEMENT WITH OPTUM BANK TO PROVIDE EMPLOYEE HEALTH SAVINGS ACCOUNT ENROLLMENTS AND CONTRIBUTIONS
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EXECUTIVE SUMMARY:
The San Diego Unified Port District (District) is adding an option to its benefits package for full time employees that utilizes Health Savings Accounts (HSA). Staff believes this provides a beneficial medical insurance coverage option for employees and the District. Optum Bank, Inc. (Optum Bank) has been selected as the financial institution to administer the HSAs. While the accounts are employee-owned, the District provides Optum Bank with enrollment information and forwards employee payroll contributions to Optum Bank for their accounts. The proposed agreement with Optum Bank for this arrangement contains indemnification provisions which require San Diego Unified Port Board of Port Commissioners (Board) approval. Given that the risk is limited and the arrangement is beneficial, staff is recommending that the Board approve the agreement with Optum Bank and grant the requested indemnity.
RECOMMENDATION:
Recommendation
Adopt a Resolution Authorizing the District to Grant Indemnity to Optum Bank, Inc. Pursuant to an Agreement with Optum Bank, Inc. to Provide Employee Health Savings Account Enrollments and Contributions
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FISCAL IMPACT:
This agenda item has no fiscal impact.
COMPASS STRATEGIC GOALS:
This agenda item supports the following Strategic Goal(s).
* A Port with an innovative and motivated workforce.
DISCUSSION:
The District provides full-time employees with medical insurance benefits as part of their benefits package. For 2018, the District is adding a new plan option, a high deductible PPO plan, which employees may elect. Staff expects that this new option can provide a lower-cost coverage alternative for some employees. If elected by an employee, this plan is accompanied by a Health Sa...
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