Minutes 08-30-2011 - Laserfiche WebLink

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- Preventive care is 100% covered and is not subject to the deductible. All other services are subject to the deductible. - After reaching the deductible, the employee shares the cost of health care by paying a percentage of the cost (co-insurance) until a maximum out-of-pocket limit is reached. - After reaching the limit, all services are paid at 100% . Health Savings Account: How It Works - An employee establishes a Health Savings Account with the Local Government Federal Credit Union (LGFCU). - The employee owns his or her account and receives a debit card with this account. - Money may be contributed to this account on a pre-tax basis, up to an annual maximum . - The HSA can be used to pay for health insurance deductibles, co-insurance, and qualified medical expenses, including those not covered by the health insurance, like dental and vision care. - Any money left in the account at the end of the year will be available to the employee for use later. An HSA Is Not the Best Option for Everyone - HSA funds can be used only for qualified medical expenses. - Potentially higher out-of-pocket medical costs with a HDHP. - For the HSA to be of value, employees need to be diligent about saving money. - Funds used for something other than qualified health care expenses are taxable and subject to financial penalties. - Employees with other health insurance coverage, such as Medicare, are not allowed to have an HSA. - Domestic partners do not qualify as a dependent under IRS guidelines. Self-Funding Health Insurance - Self-funding was not recommended for FY 2011-12. 2012 will be a transitional year as the County learns the true costs of health coverage for employees and retirees through claims data and actual costs. - Staff will review self-funding for 2013 as a method of reducing and controlling costs. - A County-operated employee clinic may potentially offer increased cost reductions and productivity. With an employee clinic offering a no-cost option to employees for minor illnesses, on the job injuries, and preventive care, employees could save time, and both the County and employees could reduce health care expenses. Dependent Coverage - The County currently pays the cost of coverage for employees and retirees for both the HMO and PPO plans. - The County subsidizes the premium cost for the employee'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.