County to seek independent review of employee health plans; CEO to release RFP for consultant

Merced County leaders on Aug. 26 authorized the CEO to release a request for proposals (RFP) for an independent review of the county’s employee health plans, benefits spending and benchmarks.

County Executive Officer Mark Hendrickson told supervisors that rising health‑care costs have pressed both county budgets and employees in recent years and that the board does not set insurer rates. He recommended an independent third‑party evaluation of the county’s medical, dental, vision and ancillary benefits, utilization trends and plan performance so the county can consider options for plan design, vendor negotiations and contribution strategies.

“This assessment will provide objective recommendations to guide future plan design, vendor negotiations, potential employer‑employee contribution strategies, and overall benefit cost containment,” Hendrickson said. The county expects to solicit qualified consultants to conduct a comprehensive evaluation and return with a recommendation after a competitive procurement process.

Supervisors welcomed the step but also cautioned staff to manage expectations and noted procurement timing and plan year constraints. Supervisor Silvera asked staff and colleagues to “manage expectations” on timing and the potential for changes to take effect only with a future calendar year because health plans typically renew on Jan. 1.

The board approved the CEO’s recommendation unanimously and directed staff to release the RFP and return with a recommendation upon completion of the competitive process.