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

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Employees will see no change in coverage and /or network providers as a result of this bid. The self- insured option allows the County to increase its contribution to the Health Savings Account, resulting in lower employee dependent cost. An increase to the HSA would also reduce the discrepancy between the cost of the individual plans. Comparison of POS and HSA/HDP Individual Costs Staff presents options for health insurance with United Healthcare on the following pages. As a rule, whenever premiums increase, employees and retirees with dependent coverage face increased costs because they contribute to the cost of dependent care. Option 1, the renewal of the current two plans, a Point of Service Plan (POS) and a Health Savings Account/High Deductible Health Plan, is lower than the FY 2013 -14 health insurance budget. The renewal is a fully- insured plan, with the County continuing to pay premiums for each member. Health care reform now requires the inclusion of POS co -pays towards deductibles and co- insurance limits. Option 2 is a self- insured plan. The County will pay claims costs, administrative fees, and re- insurance fees. Overall, the costs associated with health care reform with self- insured plans are lower than fully- insured plans. This option also includes increased County contribution to the Health Savings Account for those who elect the High Deductible Plan. Self- Funding As a fully- insured plan, the County would continue to pay a premium for health insurance, and would bear no additional risk. If claims exceed the amount of premiums paid, United Healthcare pays the cost of those claims. If the County is self- insured, the County pays all claims as well as additional stop -loss insurance. Self- funding allows greater flexibility in addressing the specific health care needs of Orange County employees and retirees. An insurance carrier providing fully insured coverage is limited by standardized plans approved by the North Carolina Department of Insurance. The total cost for administrative fees, re- insurance (stop loss coverage) and fees associated with health care reform would be the same as 2013 premiums. Wellness programs would become an important element of cost containment with savings being transferred to the County and employees. MW Annual HDP Annual Health Annual POS Premium Premium Savings Account Difference Contribution $7,574.16 $6,121.80 $1,237.20 $215.16 $7,574.16 $6,121.80 $1,416.00 $36.36 Staff presents options for health insurance with United Healthcare on the following pages. As a rule, whenever premiums increase, employees and retirees with dependent coverage face increased costs because they contribute to the cost of dependent care. Option 1, the renewal of the current two plans, a Point of Service Plan (POS) and a Health Savings Account/High Deductible Health Plan, is lower than the FY 2013 -14 health insurance budget. The renewal is a fully- insured plan, with the County continuing to pay premiums for each member. Health care reform now requires the inclusion of POS co -pays towards deductibles and co- insurance limits. Option 2 is a self- insured plan. The County will pay claims costs, administrative fees, and re- insurance fees. Overall, the costs associated with health care reform with self- insured plans are lower than fully- insured plans. This option also includes increased County contribution to the Health Savings Account for those who elect the High Deductible Plan. Self- Funding As a fully- insured plan, the County would continue to pay a premium for health insurance, and would bear no additional risk. If claims exceed the amount of premiums paid, United Healthcare pays the cost of those claims. If the County is self- insured, the County pays all claims as well as additional stop -loss insurance. Self- funding allows greater flexibility in addressing the specific health care needs of Orange County employees and retirees. An insurance carrier providing fully insured coverage is limited by standardized plans approved by the North Carolina Department of Insurance. The total cost for administrative fees, re- insurance (stop loss coverage) and fees associated with health care reform would be the same as 2013 premiums. Wellness programs would become an important element of cost containment with savings being transferred to the County and employees. MW