Minutes 03-01-2012 - Laserfiche WebLink

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Medicare has made several changes in the past few years, as has BCBSNC. Whenever possible, the County has reduced costs for Plan F and Part D by making administrative changes that did not affect the post-65 retiree benefits. The average cost of the County's cost for post-65 retiree Medicare coverage is less than half of the cost of the group health insurance individual premium. As of February 2012, more than 12% (more than 100 individuals) of current Orange County employees are eligible to retire. As more baby-boomers retire and live longer, retiree health insurance will become a greater cost to the County. In 2011, approximately 100 employees were eligible to retire and receive retiree health insurance, and in 2012, the number of employees eligible to retire will exceed 120. Orange County's benefits exceed the average health insurance benefit in North Carolina in terms of co-pays and deductibles. As a comparison, the following information is included: - Attachment 1 —summary of employee health care benefits from other of local government employers throughout the state. - Attachment 2 —Summary of Comparative retirees Health Cost and Liabilities - Attachment 3— Projected Post-Employment Benefit Analysis through Fiscal Year 2017 - Attachment 4— Current Monthly Retiree Health Insurance Cost Staff has previously identified a variety of options that lower the cost of employee and retiree health care. These options were presented at the May 10, 2011 work session. Each option has varying impacts on both retirees and the County. The Manager recommended that the Board receive information on employee and retiree health care and provide feedback regarding options related to employee and retiree health care benefits. The FY 2012-13 proposed budget does not include any specific changes at this time, but does expect to have budget projected increases (up to 15%) in premiums/costs. Commissioner Yuhasz said that at a meeting with OPC Mental Health yesterday, they were told that there are 11 employees that are on the retiree coverage that are under the age of 65, but when OPC dissolves on June 30th, there will be no more opportunities for these employees to have retiree health coverage. It has been suggested and agreed by each of the three counties in principle that those people who dedicated their professional services to OPC deserve to have the benefit. It has been suggested that one of the three counties would accept those 11 people into their health insurance plan and that OPC would fund the expenditure over the period of time within that health plan. Chatham County is not particularly interested in taking all of the people. He suggested that either Orange or Person County might be. OPC would fund the expenditure at a level that is higher than what the County is currently paying. If there is any left over, the county would keep it. If there was a shortfall, each of the three counties would participate in a third of the cost of the overage. He asked the Board if they would be willing to accept these employees into the system. Frank Clifton said that he has been looking at the numbers. If it is funded as discussed, it will not be a problem. Commissioner McKee asked the staff to please make sure that all of this information is put out to post-65 employees. Commissioner Jacobs said that he appreciated the work that staff did to bring this to the Board's attention. He said that starting a fund is a good idea now. He said that the County is