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

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rate decrease is to impose a large premium increase on any employee enrolled in dependent coverage through CIGNA. For example, the table below shows what the old and new employee costs for dependent coverage would be if the County continued to offer CIGNA. Monthly Amount Paid By the Employee Coverage Type Old New Employee/Child(ren) $143.14 $407.45 Employee/Spouse $171.70 $459.98 Employee/Family $301.72 $704.71 At the same time, the CIGNA benefits are comparable or in some cases slightly less than the benefits offered by the Blue Cross Blue Care Plan and the provider network is largely the same. Given these factors and the rate increase, it is anticipated that those employees with dependent coverage will leave CIGNA to join one of the Blue Cross Plans. Of the 129 employees enrolled in CIGNA, about 77 have dependent coverage. The remaining 52 employees participating in CIGNA are enrolled in employee only coverage. Assuming the County continued its policy of paying the full cost of employee only coverage, this would require that the County pay a monthly cost of $478.44 for CIGNA as compared to the monthly cost of $390.40 for the Blue Options Plan or $347.99 for the Blue Care Plan. Sole Provider Coverage through the NCACC Health Insurance Trust As in past years, staff requested that the NCACC Health Insurance Trust provide a quote for sole provider coverage; that is, if the County discontinued the CIGNA plan and offered only the two Blue Cross plans. The Trust advises that this would be an additional 1.5 percent rate reduction or a cost savings for the County of about $74,000 in fiscal year 2004-05. County Contribution for Employee Health Insurance The County's contribution for employee health insurance has been: ^ The full cost for individual employee coverage and ^ 52 percent of the cost of dependent coverage based on the Blue Cross Blue Care Plan rate. The County then has applied the dollar amount of the dependent contribution calculated based on the Blue Cross Blue Care rate to the Blue Cross Blue Options and CIGNA plans. The County had increased the subsidy from 40 percent to 52 percent with the January 1, 2003 renewal to offset the impact on employees of the 25 percent health insurance cost increase in 2003. The 52 percent subsidy was maintained during the 2004 plan year. The Attachment 1 draft monthly health insurance plan rates are based on renewal of the current plans with the continuation of the current 52 percent dependent subsidy, based on the Blue Cross Blue Care Plan. Continuation of the subsidy at this level maintains a key "family friendly" policy offered by the County. This is a family friendly policy in that it makes health insurance coverage for dependents, whether spouse, domestic partner, children, or the entire family more affordable, and thus, accessible. It particularly benefits lower salaried employees for whom dependent health insurance coverage is a significant cost.