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

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Recommendation Given the CIGNA renewal quote and the result that the new CIGNA pricing makes the plan unaffordable for employees, staff recommends the County pursue the sole provider option with the NCACC Health Insurance Trust. The Attachment 1 rates reflect discontinuing CIGNA effective January 1, 2005 and adopting the sole provider option. Budget for Fiscal Year 2004-05 The County budget for fiscal year 2004-05 provides funding for up to a 12.0 percent health insurance increase effective January 1, 2005. In dollars, this is $268,177 budgeted for the projected increase. Based on the quoted renewal rates for 2005, the cost of the County contribution for individual coverage and dependent coverage are within the amount budgeted for health insurance for 2004-05. The budget savings yielded by the actual renewal rates quoted over the amount budgeted for fiscal year 2004-05 based on the recommendation that the County adopt the sole provider option are about $347,000. Next Steps With the Board's approval of the health insurance renewal and rates, staff will proceed to develop the employee open enrollment packets, distribute these to employees in early October, hold the open enrollment period October 11 through November 5 with the Benefits and Wellness Fair tentatively scheduled for Friday, October 22. Payroll deductions at the new rates will begin in the pay period beginning November 22 for coverage effective January 1, 2005. FINANCIAL IMPACT: As noted, the County budget for 2004-05 provides funding for up to a 12 percent health insurance cost increase or about $268,177. Attachment 2 shows the current costs for health insurance and the projected costs for the renewal of the current plans with no change and renewal with the Trust as the County's sole provider. Both options are within the amount budgeted. RECOMMENDATION(S): The Manager recommends that the Board: • Approve renewal of employee health insurance plans with the NCACC Health Insurance Trust as the County's sole provider. • Discontinue the CIGNA plan effective January 1, 2005. • Adopt the Attachment 1 health insurance rates for coverage effective January 1, 2005 including continuing the dependent subsidy at 52 percent.