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1 <br />ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: September 17, 2013 <br />Action Agenda <br />Item No. 7 -a <br />SUBJECT: Employee Benefits and Recommendations for Calendar Year 2014 <br />DEPARTMENT: Human Resources PUBLIC HEARING: (Y /N) No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />1. 2014 Renewal Option Costs Detail for Nicole Clark, Human Resources <br />Active Employees and Pre -65 Retirees Director, 245 -2552 <br />2. September 5, 2013 Employee Benefits Diane Shepherd, Benefits Manager, 245 - <br />Agenda Abstract and Attachments 2558 <br />PURPOSE: To consider the County Manager's recommendations for employee health <br />insurance and other benefits for the 2014 calendar year. <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 regarding FY 2013 -14 employee benefits at the April 11, 2013 work <br />session, during the FY 2013 -14 budget process, and at the September 5, 2013 regular Board <br />meeting. The County conducted a Request for Proposals (RFP) process for health insurance <br />administration and requested responses for both a fully insured and self- funded plan. Retiree <br />health insurance was discussed at the June 19, 2013 regular meeting. The FY 2013 -14 <br />Approved Budget includes funds for up to an 8.0% ($226,444) health insurance premium <br />increase effective with the January 1, 2014 renewal. <br />The sole complete response from the RFP was from the County's current health insurance <br />provider, United Healthcare (UHC). UHC provided proposals for both a fully insured renewal <br />which is approximately a 6.35% increase and self- funded option which results in no increase. <br />FINANCIAL IMPACT: Attachment 1 includes the health insurance renewal options and <br />associated costs. <br />RECOMMENDATION(S): The Manager recommends that the Board approve Option 2, the <br />self- insured health insurance option with an increase in the Health Savings Account contribution <br />for employees to $118 per month effective January 1, 2014, and direct the Manager to sign the <br />necessary documents to execute the contract. <br />