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ORANGE COUNTY <br />BOARD OF COMM1SS10NERfi <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: .September 8, 2011 <br />Action Agen~da~ <br />Item No..,..--~ <br />SUBJECT: Employee Health Insurance and Other Benef~#s for 2012 <br />DEPARTMENT: Human Resources PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />1. 2012 Renewal Option Costs Detail for <br />Active Employees and Pre-65 Retirees <br />2. Original Health Insurance Renewal <br />Proposals <br />3. Comparison of Plan Designs <br />4. UnitedHealthcare Information <br />5. Vision Plan Designs <br />6. Revised Work Session Attachment <br />INFORMATION CONTACT: <br />Katherine Cathey, Interim Human <br />Resources Director, 245-2553 <br />Diane Shepherd, Benefits Manager, 245- <br />2558 <br />PURPOSE: To consider the County Manager's recommendations for employee health <br />insurance and other benefits for the 2012 calendar year. <br />BACKGROUND: The County provides employees with a comprehensive benefits plan <br />including County-paid health, dental and life insurance, an employee assistance program, <br />flexible compensation plan and paid leave for permanent employees. Additionally, the County <br />contributes to the Local Governmental Employees' Retirement System and a supplemental <br />retirement plan for each permanent employee. <br />Staff provided information relating to FY 2011-12 employee benefits at work sessions on May <br />10, 2011, June 9, 2011, August 30, 2011, and in the County Manager's recommended budget <br />for FY 2011-12. The FY 2011-12 Approved Budget includes funds for up to a 15.0% ($552,598) <br />health insurance premium increase. Over atwelve-month period, this increase is equivalent to a <br />3% salary increase for all permanent employees. <br />2012 Benefit Plans <br />The following employee benefits are recommended for implementation for the 2012 calendar <br />year: <br />Health Care <br />After an extensive bid process, staff, in consultation with broker Mark Ill, has provided options <br />for the 2012 employee health insurance benefits from UnitedHealthcare. Premiums for <br />employee health insurance are shown on Attachment 1. For additional. re~#erence, Attachment 2 <br />provides details of the original quotes received from three major insurers. .Attachment 3 <br />provides details of current and alternate plan. designs for four renewal options with <br />UnitedHealthcare, and Attachment 4 includes reference information related to UnitedHealthcare. <br />