HBA Secures 75% Concurrence to Transition Programs to ACWA/JPIA

The ACWA Health Benefits Authority reported this week that it has received concurrence from more than 75% of its members to dissolve HBA and transfer its employee benefits programs to the ACWA/Joint Powers Insurance Authority.

HBA initiated the process earlier this year to transition its operations and health benefits programs into ACWA/JPIA to combine resources, reduce overall costs and improve operations.

The HBA Board of Directors voted March 28 to dissolve the ACWA Health Benefits Authority and transfer its programs to ACWA/JPIA. Under the terms of its bylaws, HBA was required to secure the concurrence of 75% of HBA members by July 1 in order to proceed with the transition.

To satisfy that requirement, HBA members were asked to approve a formal resolution ratifying the action by the HBA board and consenting to join the employee benefits program of ACWA/JPIA. As of May 22, resolutions have now been received from more than 75% of HBA members.

Now that the required concurrence has been received, HBA will officially dissolve on July 1.

HBA members that have sent in resolutions and received a confirmation email will have their benefits transfer seamlessly from ACWA HBA to ACWA/JPIA as of July 1, 2012.

Member agencies that have not yet submitted a resolution must do so by June 29 or risk losing current health benefits coverage for their employees.

In a letter this week to members, HBA Board President Rick Gilmore thanked agencies for their prompt action on the matter and urged those who have not yet approved resolutions to do so as quickly as possible to avoid any disruption in employee benefits.

“Since ACWA HBA has received the proper concurrence from the membership to dissolve, failure to return the signed resolution by June 29, 2012, will result in loss of coverage for your district employees,” the letter said.

“If you are not planning to take the resolution to your board prior to the June 29, 2012, deadline, please contact ACWA HBA as soon as possible so that we can discuss the impact that taking no action will have on the coverage provided to your employees.”

ACWA/JPIA Chief Executive Officer Andy Sells said his organization is pleased to see the positive response from HBA members. “We are excited to move ahead with the opportunity to add employee benefits to JPIA’s offerings and potentially reduce costs for all agencies participating in these programs.”

ACWA Executive Director Timothy Quinn said transitioning HBA into ACWA/JPIA will benefit ACWA members throughout the state and result in a stronger menu of services. “This is a win-win for ACWA members that participate in these programs. ACWA is very supportive of this move and is committed to a successful transition.”

Additional information and resources can be found at a special website on the HBA transition.