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