Agenda - 10-05-2010 - 7d - Laserfiche WebLink

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insurance plan would result in a 12% increase in funding for 2011, which is 5% above the budgeted increase of 7%. The Manager does not recommend pursuing self-insurance for 2011 because it would not provide any financial savings at this time. c. Participation in the NCACC Risk Management Agency ("Risk Pool") The County currently participates in the NCACC Risk Pool. Attachment 3 is the NCACC Interlocal Agreement Group Self Insurance Fund for Risk Sharing or Group Purchase of Insurance which allows the County to join and participate in the NCACC Risk Pool which provides coverage for Worker's Compensation, Liability and Property and the Health Insurance Trust. The County has budgeted $6,338,000 for active employees' and an additional $1,352,000 for retiree health insurance in FY 2010-11.. Recommendations: • Authorize the Manager to sign the Early Retiree Reinsurance Program Plan Sponsor application and Plan Sponsor Agreement and further authorize the Manager or designee to carry out the program; • Approve the renewal of the fully-insured health insurance plans with the NCACC with an increase of 6.5%; and • Approve the resolution and authorize the Manager to sign the NCACC Interlocal Agreement for a Group Self Insurance Fund for Risk Sharing or Group Purchase of Insurance. (See Attachment 3) 2. Dental Insurance The County provides dental insurance through aself-insured dental plan with Delta Dental of North Carolina. The County pays all costs for employee coverage (claims and an administrative fee to Delta Dental). Employees pay the full premium for dependent coverage. Dental claims are paid according to a unique Orange County Table of Allowances (TOA). Because of the historically low levels of dental claims payments, the County increased its levels of reimbursement for claims in both 2009 and 2010. The County continues to have low levels of dental claims payments, and staff is recommending an increase in the reimbursement amounts for endodontics, extractions, and major restorative care. The County budgeted $251,600 for dental insurance for fiscal year 2010-11, which is sufficient to sustain increased levels of reimbursement. An overview of the dental plan and recommended enhancements are provided in Attachment 4. Recommendation: Change the Orange County Table of Allowances to increase the reimbursement amounts for Endodontics, Periodontics, Extractions, and Major Restorative Benefits. (Attachment 4) 3. Flexible Compensation Plan The County provides a Section 125 Flexible Compensation Plan administered by Tucker Administrators. 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). Employees save money because no income or social security taxes are deducted from contributions made to these accounts. Attachment 5 is an overview of the flexible spending accounts, including changes mandated by the Affordable Care Act. The County pays the administrative costs when employees choose to contribute to a flexible spending account. The County has budgeted $15,600 for these