Agenda - 05-10-2011 - 3 - Laserfiche WebLink

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Options for Lowering the Costs of Employee and Retiree Health Care Options for Retiree Health Care (Not all options can be implemented for current retirees or active employees.) 1. Revise eligibility for retiree health coverage for future hires. a. Change eligibility to a minimum of 20 years service (10 years service for disability retirement). b. Develop amulti-level program (e.g., 30 years service - 100% of premium paid by County, 20 years service - 75% of premium paid by County, 10 years service - 50% of premium paid by County). 2. Revise eligibility for Commissioners (currently available to Commissioners who serve 2 terms). 3. Eliminate retiree health insurance and replace with a Retiree Health Savings Account. This type of plan allows the County and the employee to contribute funds to a separate account to be used for future health care costs. A vesting period would require participation for a specified number of years before the retiree would receive 100% of the funds contributed. 4. Create a reimbursement process and eliminate the billing arrangement with Blue Cross Blue Shield. Set the maximum amount to be reimbursed. a. Beginning July 1, 2011, newly eligible retirees would select a Part D plan and be reimbursed for coverage every 6 months. b. Beginning January 2012, each post-65 retiree would select the most appropriate Part D based on individual need. HR and Department on Aging staff and volunteers would coordinate to meet with retirees and determine the most appropriate option based on their individual needs. 5. Reduce the amount of coverage provided for Medicare supplements from 100% to a flat dollar amount and reimburse that amount. Retirees would be able to select the Medicare supplement (with assistance from the Department on Aging) that best meets their needs. The County would set a limit, such as $250 per month (potentially to be adjusted for inflation), for a Medicare supplement. 6. Reduce the amount of coverage provided for Medicare Part D (prescription coverage) from 100% of the Enhanced Blue Cross Blue Shield Plan to a flat dollar amount and reimburse that amount. Retirees would be able to select the Medicare Part D prescription coverage that best meets their needs. The County would set a limit, such as $100 per month (potentially to be adjusted for inflation), for Medicare prescription coverage. 17 7. Eliminate all post-65 retiree benefits for new hires.