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

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6 or prescriptions, up to a maximum out of pocket limit Maximum Out of Yes Yes Pocket Out of network Yes, for PPO/POS plans Yes roviders available onl The plan f-ending to he discussed August 30 provides the same County contribution regardless of the plan an employee selects, within each option. A representative from Mark III will present the plans and discuss UnitedHealth-care. Dependent Coverage The County currently pays the cost of coverage for employees and retirees for both the HMO and PPO plans. The County also subsidizes the premium cost for the- emp_loyee's and retiree's dependent coverage at 52%, based on the lower priced plan (currently- the PPO plan). Continuation of the subsidy at this level maintains a "family friendly" feature of employment with Orange County. In a survey of employees completed in May 2011, -only 16% of respondents felt the subsidy should- be changed. Approximately 47% of employees and 30% of retirees currently have dependent coverage.- Funding Options Staffipresent three options for health insurance with-UnitedHealthcare on the following -pages. • Option 1 is a -renewal of the current traditional plans and exceeds the FY 2011-12 health insurance budget. Option 2- offers a choice between a traditional plan (HMO) and a Health Savings Account/High Deductible Health Plan. Because.the HMO plan design is the same as-the current plan, employees with dependent coverage would see a significant increase in premiums for the HMO over 2011 premiums. The HSA plan generally has lower premiums. Option 2 is slightly less than the budgeted increase for FY 2011-12 • Option 3 also offers a choice between a traditional plan (POS) and a Health. Savings Account/High Deductible Health Plan. The plan design for the POS plan is modified from- the current PPO plan. Because Option 3 is less than the budgeted increase for FY 2011- 12.it offers a more sustainable plan for current. and future years. Dependent coverage is not as costly for employees with- dependents as Option 2 and provides a choice between a plan with slightly higher premiums in the PPO or lower premiums in the HSA compared to 2011. Self-Funding In addition to reviewing alternative plan designs, staff continues to discuss self-funding options. This option has not been considered for FY 2011-12, as 2012 will be a transitional year as the County learns the true costs of health coverage for County employees. Once 2012 claims data and costs can be realistically compared, self-funding will be a more viable alternative. Staff will A-4