Agenda - 03-01-2012 - 2 - Laserfiche WebLink

Browse Search

1 '' ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 1, 2012 Action Agenda Item No. o� SUBJECT: Retirees Health Insurance Overview DEPARTMENT: Department of Finance and PUBLIC HEARING: (Y/N) No Administrative Services (DFAS) ATTACHMENT(S): 1. Summary of Employee Health INFORMATION CONTACT: Benefits Name, Phone Number 2. Summary of Comparative Retiree Clarence Grier, 919-245-2453 Health Cost and Benefits Katherine Cathey, 919-245-2553 3. Projected Post— Employment Benefit Diane Shepherd, 919-245-2558 Analysis 4. Current Monthly Retiree Health Insurance Cost 5. Governing Magazine Article PURPOSE: To provide information and an update on current employee and retiree health care benefits for FY 2012 and 2013 and to provide feedback to staff regarding options related to employee and retiree health care benefits. BACKGROUND: The current Personnel Ordinance (Article IV, Section 28-36) requires the County to provide health insurance, up to the same cost as active employees, for retirees who have at least ten years of Orange County service upon retirement. Additionally, employees who retire at age 65 or older and employees who retire due to disability with more than five years, but less than ten years of Orange County service, are eligible for the 50% of this benefit. Health coverage is provided differently depending on the age of the retiree. Retirees who have not yet reached age 65 remain on the County's group health insurance and are eligible for the dependent subsidy. In 2008, Commissioners approved a revision to the Personnel Ordinance to stop subsidizing the cost of retiree dependent health care for employees hired after July 1, 2008. This has not had any noticeable impact on recruitment or on costs to date. At age 65, retirees enroll in Medicare Part A (no cost to the retiree or County) and Part B (premium is deducted from the retiree's Social Security benefit), and the County pays for both a Medicare supplement (Plan F) and Part D. Plan F, is referred to as a "Medigap" plan because it covers the gaps left by Medicare Parts A and B. Part D is prescription drug coverage. The County has an arrangement with BlueCross BlueShield of NC (BCBSNC) whereby retirees enroll in the BCBSNC Plan F and Part D, and the County receives and pays one bill for all enrolled post-65 retirees. This reduces the administrative burden on the County but increases the financial burden because there are lower cost providers for Medicare supplements and Part D. While every Plan F includes the same benefits, Part D plans vary from provider to provider.