Minutes 09-11-2012 - Laserfiche WebLink

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th � September 19 : Discuss renewal recommendation with the ERC nd � October 2 : BOCC considers and approves the 2013 Employee Benefits Package th: � October 9 HR Staff begins education process for employees and retirees th nd � October 29 — November 2 : Open Enrollment, Mark III and HR Staff conduct numerous open enrollment meetings nd � November 2 : Open enrollment closes Commissioner Jacobs said that he asked for the detail of the survey because he knew that employees were very displeased with UHC as compared to Cigna. He wants to know if employees would be willing to have fewer benefits if you could switch to a provider they would rather have. He said that the survey should have had this question. In the follow-up, he thinks that this is a key indicator. Nicole Clark said that the survey is a starting point and she hopes to have focus groups. The details of the survey will be posted on the website. This is only a starting point for discussion. Commissioner Jacobs said that, having heard from employees, he would like them to know that they are not alone and that the County Commissioners responded in some way to direct staff to do this survey. Commissioner Foushee said that she has a concern about retiree health insurance. The Board changed the eligibility of employees but Board of County Commissioners retiree health insurance is not addressed. She thinks that if the County requires employees to have 20 years of continuous service, then the County Commissioners should also have something comparable (they are currently eligible now after eight years) to this for equity's sake. This will be brought back to the Board. Mark Browder then made his PowerPoint presentation. He made reference to slide 2 and said that the payout versus the premium pay was a loss of$2.7 million for the NCACC for insuring Orange County. After plan design changes were made, the plan has been running more smoothly than it did with the NCACC. It is running two points better than breaking even. Slide 5 has the 2013 renewal estimate. He looked at both fully insured and self-funded and self-funding does not make economic sense at this point. Slide 6 has the 2013 renewal from United Healthcare. There are now plan design changes. The net effect is a 7% increase in rates, which is competitive. Mark Browder made reference to the question of whether employees would be willing to pay more for richer benefits. He said that some employees would be willing to pay more. Slide 10 has the difference in Option 1 and 2, with the difference being the addition of the obesity surgery benefit. There is a substantial jump in cost to add that benefit. Renewal Observations: - The UHC Renewal is very competitive, based on the County's claims. -Looking to transition to another carrier will have a nominal financial impact. -Self-funding doesn't provide the County with any savings. -As noted, there are benefits additions that are being recommended.