Agenda - 08-30-2011 - 3 - Laserfiche WebLink

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5 • Create a Basic Plan and aBuy-Up Plan. A Basic Plan would provide a lower level of benefits at no cost fo employees. Employees who prefer a higher level of benefits would pay a higher premium for aBuy-Up Plan. The cost to the County would remain the same because employees who choose the Buy-Up Plan will assume the additional costs for this higher level of coverage. • Create a Single Plan with reduced benefits compared to the County's existing health plans. The cost to the County and to the employee would remain neutral but employees would have more limited- coverage compared to the- current health plans and could- not choose between a PPO and a-n HMO plan. The-Single Plan could be either an HMO or PPO plan. In pursuing additional information from insurance carriers, staff did not focus-on this option because of the lack of choice for- employees, and because of the higher cost of dependent coverage: • -Offer only a high deductible plan, utilizing a Health Savings Account to handle most employee out of pocket costs, as an option. Staff did not focus on-this plan because of the lack of choice. for employees and- because the-concept--of a high deductible plan is difficult for some employees to comprehend and financially difficult for others. The chart below provides additional information regarding the two types of plans described above. The Point of Service plan (POS) is a traditional health insurance plan; the -l=lealth Savings Account/High Deductible Plan is considered a consume-driven-health plan because it requires more consumer involvement to use the benefits most cost-effectively. Both plans offer advantages and disadvantages to employees, depending on the individual or family health care needs. Comparison of Traditional Plans and Health Savi-ngs Account- Traditional Plans: -Health Savings Account/ Preferred Provider High Deductible Health Organization/ Point of Plan Service Plan/Health Maintenance Organization (HSA) PPO/POS/HMO 100% covered Yes Yes reventive care Co-Pays for Office Yes No Visits and Prescri tions Deductible Yes, for services that are Yes, for all services and NOT office visits or higher than the Traditional rescfi tions Plan deductible County contributes to No Yes, through the Health deductible Savin s Account Flexible Spending Both medical and Only achild/dependent Account child/dependent care care FSA would be available Co-Insurance (after, Yes, only for services Yes, up to a maximum out the deductible is met that are NOT office visits of ocket limit A-3