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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: September 11, 2012 <br /> Action Agenda <br /> Item No. 2 <br /> SUBJECT: Employee Benefits Updates and Preliminary Recommendations Regarding <br /> Calendar Year 2013 Health Insurance Modifications <br /> DEPARTMENT: Human Resources PUBLIC HEARING: (Y/N) No <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> A. Benefits Report Nicole Clark, Human Resources <br /> B. Health Insurance History Director, 245-2552 <br /> C. 2013 Renewal Option Costs Detail for Diane Shepherd, Benefits Manager, 245- <br /> Active Employees and Pre-65 Retirees 2558 <br /> D. Employee Health Insurance Survey <br /> Responses <br /> E. Retiree Health Eligibility by Jurisdiction <br /> PURPOSE: To receive information and provide feedback to staff on employee pay and <br /> benefits for calendar year 2013. <br /> BACKGROUND: The County provides employees with a comprehensive benefits plan <br /> including County-paid health, dental and life insurance, an employee assistance program, <br /> flexible compensation plan and paid leave for permanent employees. Additionally, the County <br /> contributes to the Local Governmental Employees' Retirement System and a supplemental <br /> retirement plan. <br /> Staff provided information relating to FY 2012-13 employee benefits at the June 7, 2012 work <br /> session and in the County Manager's recommended budget for FY 2012-13. Retiree health <br /> insurance was discussed at the June 19, 2012 regular meeting. The FY 2012-13 Approved <br /> Budget includes funds for up to a 23.0% ($171,609) health insurance premium increase <br /> effective with the January 1, 2013 renewal. An overview of current benefits and proposed <br /> changes to health benefits are discussed in the attached report (Attachment A). <br /> Effective January 1, 2012, health insurance benefits for Orange County employees and retirees <br /> changed significantly due to the termination of the North Carolina Association of County <br /> Commissioners' health insurance pool. Orange County conducted a competitive process and <br /> selected UnitedHealthcare as the provider for a fully insured group health insurance plan. <br /> Attachment B shows a brief history of health insurance changes and premiums. <br /> Attachment C provides details of current and alternate plan designs. A recommendation to <br /> consider and approve final plan design and premium structure will be presented at the Board's <br /> October 2, 2012 regular meeting based on input received during the September 11, 2012 work <br /> session. <br />