Agenda - 09-09-2004 - 9b - Laserfiche WebLink

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2005 Health Insurance Rates The NCACC Health Insurance Trust and CIGNA have provided renewal rate quotations effective January 1, 2005 for the current health plans as follows: Plan Rate Change Blue Cross Blue Care Plan -2.1 Blue Cross Blue Options Plan -2.1 CIGNA Healthcare 37.72% The NCACC Trust advises that the reduction in rates for the Blue Cross Blue Care and Blue Options plans is due to the County's favorable claims experience over the past year as well as a decline in the projected trend for health insurance costs. CIGNA advises that its significant rate increase is due to increased cost for claims and large claims alone (over $50,000) that have totaled over $480,000 for the past year. Domestic Partners Both the NCACC Trust and CIGNA renewal quotes provide for coverage for domestic partners with no additional charge for this coverage. In accordance with the Board of Commissioners' decision at its November 2003 pay and benefits work session to offer domestic partner coverage effective with the January 1, 2005 health insurance renewal, staff will be providing as a separate agenda item at the September 21, 2004 Board meeting, the proposed implementing policy and personnel ordinance revisions for domestic partner coverage. Benefits Changes The NCACC Trust renewal provides for one change for the two Blue Cross plans. When purchasing prescriptions, employees will be required to receive generic equivalents of prescribed medications, when available. If the employee voluntarily chooses a more expensive brand-name medication, he/she will be responsible for paying the prescription co-payment plus the difference in cost between generic and brand name medication. However, if the participant's physician specifies that abrand-name medication is re uired, and indicates "fill as prescribed" on the prescription, the participant will not be responsible for paying the difference in cost. The CIGNA Healthcare renewal includes no changes from the benefits provided during the 2004 Plan year. Canadian Drug Purchase The Board had asked that staff provide a report and update on the option of purchasing drugs from Canada. Staff plans to provide this later this fall. It does not impact the current health insurance renewal. CIGNA Healthcare After evaluating the renewal quote from CIGNA, it appears that the effect of the large CIGNA rate increase is to price itself out of the reach of employees. Assuming the County continues its current subsidy levels, the impact of the CIGNA rate increase coupled with the NCACC Trust