Agenda - 09-14-2010 - 3 - Laserfiche WebLink

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2 attended group meetings to learn more about their benefits and how individual actions have an impact on the cost of health insurance. Human Resources also produced Wellness Weekly emails to provide details about benefits, county employees' health and regulatory communications. Articles in Orange Alive and discussions with employees and department directors further informed employees on how to use their health care most effectively. Staff was involved in presentations and discussions throughout the year with the Employee Relations Consortium (ERC) and its Pay and Benefits Committee to solicit their opinions regarding employee benefits. Both external and internal changes will affect employee benefits in 2011 more than in the past: Health Care Reform Legislation of 2010 National Health Care Reform was enacted in March 2010, with different elements becoming effective immediately and others in the next few years. Attachment 1 outlines the impact of Health Care Reform on the Orange County health care plans. Because the County's health insurance already provides many of the benefits which are mandated for employers, very few changes will be required immediately. Of benefit to Orange County, Health Care Reform will provide a benefit to Orange County by providing a reimbursement for 80% of certain medical costs through the Early Retiree Reimbursement Program. Reimbursement is available for claims beginning June 1, 2010 for pre-65 retirees covered by the County Health Plan, and must be used to offset actual increases in the cost of health insurance. Based on the County's past claims, it is estimated that the County may be eligible to receive approximately $150,000 over the next 18 months. Staff is preparing the application for this program. Broker Services To assist the County in plan design and cost containment measures related to benefits for 2011 the County decided to utilize the services of a benefits consultant. Mark III was selected after evaluating three brokers because of several factors including their extensive experience with local governments. They have agreed to provide these services at no consultant fees for 2011. Any compensation for providing these services for the first year will be derived from the potential enrollment of voluntary benefits as outlined in Attachment 6 below. Future fees, based on number of employees, will not exceed $2.00 per employee per month (approximately $20,000). The savings to our health care plan costs is expected to exceed that of their services, and will be particularly valuable as the County considers and possible implementation of aself-funded health insurance plan,. They will assist with supplemental benefits to County employees, assist with the integration of claims information with plan design and wellness activities, and provide Open Enrollment services. 2011 Benefit Plans Moving forward with plan implementation for 2011, the following benefits are being considered: C7 • 1. Health Insurance The County provides two fully-insured health insurance plans for employees, and pays the employee portion of coverage, as well as a subsidy for dependent coverage. An overview of the current plans, plan participation, and initial recommendations are described in Attachment 2. The County received 2011 renewal rates from the North Carolina Association of County Commissioners (NCACC) for our two fully insured health insurance plans at a total increase of 6.5%. This amount is within the 7% increase budgeted for FY 2010-11.