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

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3 Renewal information, including a potential self-funding option, is provided on Attachment 3, • which also includes a comparison of fully-insured funding vs. self-insured funding. Staff is closely analyzing potential cost savings of self funding and will provide a recommendation shortly. The County has budgeted $6,338,000 for health insurance in Fiscal Year 2010-11. 2. Dental Insurance The County provides aself-insured dental plan through Delta Dental of North Carolina. The County pays all costs for employee coverage: claims and an administrative fee to Delta Dental. Dental claims are paid according to a Table of Allowances (TOA) unique to Orange County. In both 2009 and 2010, the County increased its levels of reimbursement for claims. The County has budgeted $251,600 for dental insurance in Fiscal Year 2010-11. An overview of the dental plan and suggested enhancements are shown on Attachment 4. 3. Flexible Compensation Plan The County provides a Section 125 Flexible Compensation Plan administered by Tucker Administrators. Attachment 5 shows participation and required changes for the Plan Year beginning December 1, 2010. This Plan consists of a) tax sheltering of health and dental premiums and b) two Flexible Spending Accounts (a medical spending account and dependent/child care spending account). The Spending Accounts enable employees to contribute money to a separate account. Employees save money because no income or Social Security taxes are deducted from on contributions made to the Flexible Spending Account(s),. The County pays the administrative costs when employees choose to contribute to a Flexible Spending Account. The County has budgeted $15,600 for these administrative costs in Fiscal Year 2010-11. As part of their services, Mark III will be assuming these administrative costs. • 4. Em to ee Assistance Pro ram EAP P Y 9 ~ ) Magellan Behavioral Health provides the County's EAP for County employees and their dependents. The EAP provides several services including confidential assessment and counseling services, 24/7 emergency services, and legal consultation. The EAP is a complement to services provided through the County Health Plan at no cost to employees or their dependents. Both employees and the County save when employees use the EAP instead of the County health insurance. We requested and have received a two year contract renewal, January 1, 2011-December 31, 2012 at the same rate as the 2009-2010 contract. The County has budgeted $15,500 for the Employee Assistance Program in Fiscal Year 2010-11. 5. Life/Accidental Death and Dismemberment Insurance The County provides an employer-paid life insurance benefit at the employee's annual salary (rounded to the next thousand dollars) with a maximum benefit of $50,000. Our three-year contract with MetLife ends December 2010. We successfully negotiated a new three year contract beginning January 2011 to December 2013 at the same cost (22.5 cents for every $1,000 of coverage for life and accidental death and dismemberment insurance) as the current contract. Employees are able to purchase additional term life insurance through this Plan. The plan continues to be administered through Mark III Employee Benefits. The County has budgeted $96,600 for health insurance in Fiscal Year 2010-11. • 6. Supplemental Benefits Orange County allows employees to purchase supplemental insurance benefits such as short term disability, cancer and hospitalization insurance through payroll deduction. Attachment 6