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Why is the Sequoia Healthcare District switching its Workers Comp. Insurance to ACHD's Alpha Fund?

Original post made by Jack Hickey, Woodside: Emerald Hills, on Dec 6, 2012

The following item received board approval at yesterdays meeting:

ACTION c. Consider Resolution 12-3 Authorizing Application To The State Of California For A Certificate Of Consent To Self Insure Workers’ Compensation Liabilities – Mr. Michelson
See: Web Link for additional info on that item, particularly the "Sequoia Healthcare District ALPHA Fund JPA Full Coverage Proposal"

SHCD CEO, Lee Michelson provided some additional information not presented at yesterdays meeting:
"I have some additional information to share with you regarding the Alpha Fund. They were established in 1976 so they have been in business 36 years. They have 57 members including several other healthcare districts, hospitals and non –profits totaling more than 20,000 lives and assets exceeding $1 billion. They are led by the same group that leads ACHD and as a result of joining Alpha Fund we are entitled to a reduction in ACHD dues. As a member we are entitled to attend their meetings and participate in decision making. I am requesting copies of annual reports and newsletters for everyone. Lee"
NOTE: ACHD is the Association of California Healthcare Districts, a lobbying organization which also engages in Grassroots Advocacy. See: Web Link

At the meeting, we were informed that by using the ACHD affiliated ALPHA Fund instead of the California's Workers Comp., we would get a reduction in our dues from $15,000/year to $10,000/year. The District could save another $10,000/year by dropping out of ACHD. That would also save several thousand dollars more on their annual meeting junket.

Comments (2)

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Posted by Jack Hickey
a resident of Woodside: Emerald Hills
on Dec 8, 2012 at 10:50 am

Note the JPA in "Sequoia Healthcare District ALPHA Fund JPA Full Coverage Proposal". That stands for Joint Powers Agency. The District would have to execute a Joint Powers agreement. This is uneccessary involvement in what should be a contract for insurance.

More about ACHD can be found at Web Link. Read their publications. Check out the big ads by Tramutola. Is there a Sequoia Healthcare District parcel tax in our future?

Let's stop them before that happens.

Like this comment
Posted by Jack Hickey
a resident of Woodside: Emerald Hills
on Dec 21, 2012 at 2:15 pm

This proposal would reduce the amount shown in the budget for Membership dues. Looks a little like "money laundering" to me!

"Insurance" money goes into the ALPHA Fund, which then subsidizes ACHD operations.

ACHD has the following Standing Committee:

Finance Committee
The committee is responsible for the financial oversight of the Association and the ALPHA Fund. The committee is comprised of seven Healthcare District representatives.

Main Objectives:
Develop a priority driven budget and dues assessment recommendation
Evaluate and recommend new revenue streams/services
Evaluate and recommend alternatives for fiscal stability and independence from the ALPHA Fund subsidy

This is not a good reason to switch insurance providers.
Let the SHCD Boardmembers know how you see it. Web Link

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