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i <br />t_ <br />2 <br />Budget for Fiscal Year 1998 -99 <br />Also as reported in September, the County budget for fiscal year 1998 -99 provides funding <br />for up to a 20 percent health insurance increase effective January 1, 1999. In dollars, this <br />is about $210,000 for the projected increase. <br />Based on the quoted renewal rates for 1999, the cost of the County contribution for <br />individual coverage and dependent coverage are within the amount budgeted for <br />health insurance for 1998 -99. The budget savings yielded by the actual renewal rates <br />quoted over the amount budgeted is about $100,000 in 1998 -99. <br />Two Blue Cross Rates Versus Single Rate <br />In the past, the NCACC Trust has quoted a single or so called fully blended rate for the <br />Blue Cross plans. This means the premiums for the Blue Cross Preferred Provider Plan <br />and the Blue Cross Personal Care Plan have been the same. For 1999, the Trust has not <br />quoted a fully blended rate because of the County's significantly higher claims experience <br />for the Preferred Provider Plan. Instead of the single Blue Cross rate, the Trust has quoted <br />two partially blended rates for the plans. This means that each of the two plans has a <br />different rate. <br />County Contribution and Employee Cost <br />In the past the County has established its contribution for employee health insurance as the <br />full cost for individual employee coverage and 40 percent of the cost of dependent <br />coverage based on the Blue Cross rate. The County then has applied the same dollar <br />amount of the dependent contribution as calculated based on the Blue Cross rate to the <br />Healthsource plan. <br />In calculating the County's contribution and employee cost for the 1999 renewal, the same <br />procedure has been followed. However, since two Blue Cross rates have been quoted, the <br />County has based its calculation of the dependent subsidy on the rate for the Blue Cross <br />Personal Care Plan. <br />Recommendation: The Manager recommends the Board approve the attached employee <br />health insurance rates for 1999. <br />(KAHea1th\Agen9899. Doc) <br />