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• Attachment 3 Page <br />COMPARISON OF FULLY-INSURED VS. SELF-INSURED HEALTH COVERAGE <br /> Current Renewal Option 2 Estimated <br /> (Fully-Insured) Range* <br /> Self-Insured <br />HMO $499 $532 $490-$603 <br />PPO $478 $509 $473-$582 <br />INDIVIDUAL MONTHLY PREMIUM COST: <br />*Because the analysis for self-funding has not been completed, the table shows the range <br />provided by the NCACC in the 2011 renewal. Since future claims costs are unknown, the final <br />premiums will be determined by the risk the County is willing to take and the cost of stop loss <br />insurance <br />Orange County is currently fully-insured for health insurance. The County pays a set premium <br />per member based on coverage level, and those premiums cover administrative costs, medical <br />and prescription claims, and additional stop loss insurance. The County has no additional <br />• liability; however, any portion of premium not spent for claims or administrative expenses <br />remains with the NCACC. Away to reduce overall costs of health insurance is to change from <br />fully-insured to self-insured coverage, in which case we would pay only the cost of actual claims <br />plus an administrative fee per subscriber to a third party administrator, such as the NCACC. <br />With the assistance of the NCACC and benefits broker Mark III, we are exploring the cost <br />benefit of changing to aself-funded plan. <br />C, <br />Self-Insured Full Insured current fundin <br />Lower, administrative charges and generally Pay fixed premiums regardless of claims <br />lower costs as employer pays only the <br />administrative costs, claims, and stop loss <br />insurance for hi h claims <br />Better control of cash flow-claims payment is Predictable costs as premiums are tied to the <br />made onl when a claim is incurred. number of em to ees <br />Full risks of monthly claims fluctuation are All risks are borne by the NCACC <br />borne b the Count <br />Orange County continues to benefit from No change <br />CIGNA rovider discounts <br />Orange County takes advantage of the savings County receives no fiscal advantage in a year <br />to develop programs for our employees, not with low claims until the next year's renewal <br />the entire pool, resulting in reduced claims <br />over time. Not subject to all government <br />mandates as full -insured tans <br />