Minutes 09-14-2010 - Laserfiche WebLink

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1 2. The County received 2011 renewal rates from the North Carolina Association of County 2 Commissioners (NCACC) for our two fully insured health insurance plans at a total increase of 3 6.5%. This amount is within the 7% increase budgeted for FY 2010-11. 4 Renewal information, including a potential self-funding option, is provided on Attachment 3, 5 which also includes a comparison of fully-insured funding vs. self-insured funding. Staff is 6 closely analyzing potential cost savings of self funding and will provide a recommendation 7 shortly. The County has budgeted $6,338,000 for health insurance in Fiscal Year 2010-11. 8 9 2. Dental Insurance 10 The County provides a self-insured dental plan through Delta Dental of North Carolina. The 11 County pays all costs for employee coverage: claims and an administrative fee to Delta 12 Dental. Dental claims are paid according to a Table of Allowances (TOA) unique to Orange 13 County. In both 2009 and 2010, the County increased its levels of reimbursement for claims. 14 The County has budgeted $251,600 for dental insurance in Fiscal Year 2010-11. An overview 15 of the dental plan and suggested enhancements are shown on Attachment 4. 16 17 3. Flexible Compensation Plan 18 The County provides a Section 125 Flexible Compensation Plan administered by Tucker 19 Administrators. Attachment 5 shows participation and required changes for the Plan Year 20 beginning December 1, 2010. This Plan consists of a) tax sheltering of health and dental 21 premiums and b) two Flexible Spending Accounts (a medical spending account and 22 dependent/child care spending account). The Spending Accounts enable employees to 23 contribute money to a separate account. Employees save money because no income or 24 Social Security taxes are deducted from on contributions made to the Flexible Spending 25 Account(s). The County pays the administrative costs when employees choose to contribute 26 to a Flexible Spending Account. The County has budgeted $15,600 for these administrative 27 costs in Fiscal Year 2010-11. As part of their services, Mark III will be assuming these 28 administrative costs. 29 30 4. Employee Assistance Program (EAP) 31 Magellan Behavioral Health provides the County's EAP for County employees and their 32 dependents. The EAP provides several services including confidential assessment and 33 counseling services, 24/7 emergency services, and legal consultation. The EAP is a 34 complement to services provided through the County Health Plan at no cost to employees or 35 their dependents. Both employees and the County save when employees use the EAP 36 instead of the County health insurance. 37 38 We requested and have received a two year contract renewal, January 1, 2011-December 31, 39 2012 at the same rate as the 2009-2010 contract. The County has budgeted $15,500 for the 40 Employee Assistance Program in Fiscal Year 2010-11. 41 42 5. Life/Accidental Death and Dismemberment Insurance 43 The County provides an employer-paid life insurance benefit at the employee's annual salary 44 (rounded to the next thousand dollars) with a maximum benefit of $50,000. Our three-year 45 contract with MetLife ends December 2010. We successfully negotiated a new three year 46 contract beginning January 2011 to December 2013 at the same cost (22.5 cents for every 47 $1,000 of coverage for life and accidental death and dismemberment insurance) as the current 48 contract. Employees are able to purchase additional term life insurance through this Plan.