Agenda - 09-08-2011 - 8b - Laserfiche WebLink

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2 Recommendations: • Approve the renewal of the fully-insured health insurance plans with UnitedHealthcare, choosing one of the following options: o Option 3, with an overall premium increase of 5.24%, or o Optiorl4, with an overall premium increase of 8.64%. • Authorize the County Manager to sign a contract with UnitedHealthcare, following review by the C,'ounty Attorney and Hen Resources staff. Dental Insurance The County provides aself-ipcursd dental plan through Delta Dental of North Carolina. Over the past four years, the County has been systematically increasing claim reimbursements to match Delta Dental's maximum payable amount (MPA). The last step in shifting all reimbarsements to the MPA can .occur effective January 1, 2012, and doing so will end the unique Orange County Table of Allowances. Delta Dental is also allowing new reimbursements in accordance with industry best practices. Recommendation: • Replace the Orange County Table of Allowances with the maximum payable amounts reimbursed by Delta Dental. Flexible Compensation Plan The County provides a Section 125 Flexible Compensation Plan administered by Tucker Administrators. The plan consists of: a) tax sheltering of health and dental premiums and b) Flexible Spending Accounts for medical expenses and dependent/child care expenses. Currently, the Plan Year for Flexible Spending Accounts (FSA) is December 1 to November 30, while all other plan years, including Health Insurance, are January 1 to December 31. Federal tax regulations prohibit employees from participating in both a Flexible Spending Account and a Health Savings Account at the same time. If the County implements a Health Savings Account, it will be advantageous to change the Flexible Spending Account Plan Year to the same dates as the Health Insurance Plan Year to align the FSA and HSA plan years. Both Plan Years would be January 1 to December 31, effective January 1, 2012. Employees who elect a Health Savings Account, effective January 1, 2012, must incur all expenses prior to December 31, 2011 to remain compliant with federal laws; however all employees will have an additional grace period in which to claim incurred expenses. Recommendations: • Align the Flexible Compensation Plan Year with the health insurance plan year, and. • Reduce the grace period allowed fo incur medical expenses in the can-ent plan year fo one month, ending December 31, 2011, for employees electing a Health Savings Account, effective January 1, 2012. Vision Benefits The County's current health insurance benefits and the proposed options for 2012 do not provide a benefit for eyeglass frames or lenses. With UnitedHealthcare, employees will be authorized a routine eye exam bi-annually. Er~+ployees have requested benefits that include a higher level of vision. coverage. This benefit would be a voluntary benefit and paid by employees through payroll deduction.