Recommended Budget Volume One.book - Chief Executive Office ...

Office of Managed Care Budget Summary
HEALTH SERVICES - OFFICE OF MANAGED CARE BUDGET SUMMARY
The Office of Managed Care (OMC) provides for the
administration of the Community Health Plan (CHP). Through
the CHP, the County delivers a full spectrum of health care
services to Medi-Cal beneficiaries, eligible beneficiaries of the
Healthy Families Program and eligible In-Home Supportive
Services (IHSS) providers, in a managed care environment,
either as a direct service provider through Department of
Health Services (DHS) facilities or through contracts.
The 2011-12 Recommended Budget reflects:
■ The reversal of the labor-management savings placeholder
adjustments included in the fiscal year (FY) 2010-11 Final
Adopted Budget. Labor-management savings are being
replaced by changes in the County’s deferred compensation
program.
■ A decrease in funding and related revenue for the CHP Healthy
Families Program based on membership projections.
■ An increase in funding and related revenue for the IHSS
Provider Health Care Plan to recognize an increase in
enrollment.
■ Funding for Board-approved increases in health insurance
subsidies and adjustments to salaries and various employee
benefits.
HEALTH SERVICES
Budget Summaries
FY 2009-10 FY 2010-11 FY 2010-11 FY 2011-12 FY 2011-12 CHANGE FROM
CLASSIFICATION ACTUAL ESTIMATED BUDGET REQUESTED RECOMMENDED BUDGET
FINANCING USES
SALARIES & EMPLOYEE BENEFITS $ 18,950,772.01 $ 19,589,000 $ 19,722,000 $ 20,363,000 $ 20,363,000 $ 641,000
SERVICES & SUPPLIES 162,181,854.39 178,405,000 198,567,000 199,879,000 198,615,000 48,000
S & S EXPENDITURE DISTRIBUTION (34,591,587.31) (35,706,000) (39,813,000) (39,813,000) (39,813,000) 0
TOTAL S & S 127,590,267.08 142,699,000 158,754,000 160,066,000 158,802,000 48,000
OTHER CHARGES 0.00 5,000 5,000 5,000 5,000 0
CAPITAL ASSETS - EQUIPMENT 47,612.85 159,000 159,000 177,000 177,000 18,000
GROSS TOTAL $ 146,588,651.94 $ 162,452,000 $ 178,640,000 $ 180,611,000 $ 179,347,000 $ 707,000
NET TOTAL $ 146,588,651.94 $ 162,452,000 $ 178,640,000 $ 180,611,000 $ 179,347,000 $ 707,000
REVENUE 160,955,209.95 175,615,000 191,500,000 185,975,000 184,751,000 (6,749,000)
NET COUNTY COST $ (14,366,558.01) $ (13,163,000) $ (12,860,000) $ (5,364,000) $ (5,404,000) $ 7,456,000
BUDGETED POSITIONS 255.0 257.0 257.0 257.0 257.0 0.0
FUND FUNCTION ACTIVITY
GENERAL FUND HEALTH AND SANITATION HEALTH
■ The elimination of the Department's proportional share of the
costs associated with the issuance of the 1994 Pension
Obligation Bonds. The bonds were fully paid in FY 2010-11.
The retirement of the 1994 Pension Obligation Bonds reflects
a reduction in expense that will partially offset other net cost
increases.
■ A projected ten-percent (10%) increase in retiree health
insurance premiums in FY 2011-12.
■ An overall decrease in deferred compensation plan costs due
to reduced County contribution rates along with a
corresponding decrease in the County's total annual
■
contribution limit as approved by the Board of Supervisors.
An increase of seventeen percent (17%) in the employer
retirement contributions due to the decline in the Los Angeles
County Employees Retirement Association (LACERA) portfolio
and revised investment return assumptions.
■ Various other cost changes, including adjustments for
operating expenses and overhead charges billed among
departments and within the Department.
■ A decrease in CHP Equity Distribution reflecting recent
changes in the Medi-Cal Managed Care Program contract with
L.A. Care Health Plan related to rate changes.
FY 2011-12 Recommended Budget Volume One 27.22 County of Los Angeles