Agenda - 09-05-2013 - 7a - Laserfiche WebLink

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7 The plan funding provides the same County contribution regardless of the plan an employee selects, within each option. In 2012, the County contributed $1,237.20 to a health savings account on behalf of each employee who enrolled in the High Deductible Plan. This was a significant factor in the success of the High Deductible Plan, with over 20% of employees enrolling during the first year and a 6% increase in enrollment from 2012 to 2013. Dependent Coverage The County currently pays the cost of coverage for employees and retirees for both the HDP and POS plans. The County also subsidizes the premium cost for the employee's and pre -65 retiree's dependent coverage at 52 %, based on the lower priced plan (currently the HDP plan). Continuation of the subsidy at this level maintains a "family friendly" feature of employment with Orange County. Employee cost for dependent coverage is directly tied to the total cost of the lower- priced HDP /HSA. The more the County contributes for the individual HDP /HSA, the lower the employee cost for dependent coverage. Employees with dependents who elect the POS have significantly higher premiums, but may have lower out of pocket costs for health care services. 2014 Options The Fiscal Year 2013 -14 budget approved up to an 8% increase in health care premiums (six months of benefits). A competitive bid process was conducted for the 2014 plan year and included requests for pricing for fully insured and self- funded plans. Four insurance carriers provided responses, but only United Healthcare provided a firm response for both fully- insured and self- insured options. The renewal information presented by Mark III is based on 17 months of claims, from January 2012 to May 2013. The United Healthcare quote for renewal of the current Point of Service (POS) and High Deductible Plan with Health Savings Account (HDP) was approximately 106.4% of current premiums. The self- insured option with our current plan design would cost the same as 2013. A -5 office visit co -pays Traditional Plan: Point High Deductible Plan/ of Service Plan Health Savings Account Choice Plus POS Definity HSA Maximum Out of $1,500 individual $3,500 individual Pocket $4,500 family $4,500 family Out of network Yes Yes providers available Flexible Spending Medical FSA ($2,500 Child /dependent care FSA Account maximum) and ($5,000 maximum) child /dependent care FSA ($5,000 maximum) Health Savings Not available $3,250 maximum /individual Account 1 $6,250 maximum /family The plan funding provides the same County contribution regardless of the plan an employee selects, within each option. In 2012, the County contributed $1,237.20 to a health savings account on behalf of each employee who enrolled in the High Deductible Plan. This was a significant factor in the success of the High Deductible Plan, with over 20% of employees enrolling during the first year and a 6% increase in enrollment from 2012 to 2013. Dependent Coverage The County currently pays the cost of coverage for employees and retirees for both the HDP and POS plans. The County also subsidizes the premium cost for the employee's and pre -65 retiree's dependent coverage at 52 %, based on the lower priced plan (currently the HDP plan). Continuation of the subsidy at this level maintains a "family friendly" feature of employment with Orange County. Employee cost for dependent coverage is directly tied to the total cost of the lower- priced HDP /HSA. The more the County contributes for the individual HDP /HSA, the lower the employee cost for dependent coverage. Employees with dependents who elect the POS have significantly higher premiums, but may have lower out of pocket costs for health care services. 2014 Options The Fiscal Year 2013 -14 budget approved up to an 8% increase in health care premiums (six months of benefits). A competitive bid process was conducted for the 2014 plan year and included requests for pricing for fully insured and self- funded plans. Four insurance carriers provided responses, but only United Healthcare provided a firm response for both fully- insured and self- insured options. The renewal information presented by Mark III is based on 17 months of claims, from January 2012 to May 2013. The United Healthcare quote for renewal of the current Point of Service (POS) and High Deductible Plan with Health Savings Account (HDP) was approximately 106.4% of current premiums. The self- insured option with our current plan design would cost the same as 2013. A -5