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Healthcare provided the most competitive responses for Orange County. <br /> O The renewal options include: <br /> O Option 1 — HMO and POS plans that closely reflects the current benefits <br /> with an 18% increase. <br /> O Option 2 — HMO plan that closely reflects the current benefits and an <br /> HSA plan that is a 16% increase. <br /> O Option 3 — POS and HSA dual option for a 5% increase. <br /> O Option 4 — POS and HSA dual option for a 8.6% increase. <br /> Tables with detailed amounts for various amounts of coverage are incorporated by reference <br /> and are located in the Clerk to the Board's permanent agenda files. <br /> Recommendations: <br /> • Approve the renewal of the fully-insured health insurance plans with UnitedHealthcare, <br /> choosing Option 3 or Option 4; <br /> • Authorize the County Manager to sign a contract with UnitedHealthcare, following <br /> review by the County Attorney and Human Resources staff; <br /> • Replace the entire Orange County Table of Allowances with the maximum payable <br /> amounts reimbursed by Delta Dental; <br /> • Align the Flexible Compensation Plan Year with the calendar year; <br /> • Reduce the grace period allowed to incur medical expenses in the current plan year to <br /> one month, ending December 31, 2011, for employees electing a Health Savings <br /> Account, effective January 1, 2012; <br /> • Authorize employee payroll deductions for the Community Eye Care vision plan; and <br /> • Authorize the County Attorney to develop a two year Memorandum of Understanding <br /> between the County and Community Home Trust and authorize the County Manager to <br /> sign the agreement. <br /> Commissioner Gordon made reference to the Points of Service Plan, for out-of-network <br /> claims. She asked about the coinsurance limits for all Point of Service Plans and if United <br /> Healthcare would pay 60% and the insured would pay 40%. Mark Browder said yes. The only <br /> thing that would be the same would be the ER co-pay. It is 60% for out-of-network services. <br /> He reminded everyone that 99.9% of all claims go in as in-network claims. <br /> Commissioner Gordon said that the County has set aside $550,000 for a 15% increase <br /> in health insurance. She asked about the base for the numbers of each option. <br /> Frank Clifton said that they budgeted for about a 15% increase in costs before they <br /> even received any quotes from the vendors. The reality is that this will be a substantial portion <br /> of the County's budget and this will have to be monitored continuously. <br /> Commissioner Hemminger said that, in looking at what the County currently has, most <br /> employees have picked the HMO, and out of the 800+ employees, 350 use the spouse, child <br /> or children. Her first concern is trying to balance out what works best for the County budget. <br /> Her second biggest concern is adequate coverage and benefits for all employees. Her third <br /> concern is that the employees are getting hit again in the pocket on their paycheck due to <br /> increased insurance rates. She asked which plan would work best for an employee that has a <br /> catastrophic illness. <br /> Mark Browder said that, in looking at Option 4, the Point of Service plan would be better <br /> financially than the HSA for an individual. If a family is involved and more than one member <br />