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3 <br /> Attachment 1 compares costs for the two options. Attachment 2 shows the <br /> rates(total, County cost and employee cost)under each option. <br /> Attachment 3 shows the estimated costs for fiscal year 1996-97. <br /> In summary: <br /> • The NCACC Health Insurance Trust 1997 rate quote for renewal of the <br /> current Blue Cross plans (Preferred Provider and Personal Care Plans) <br /> provides for an approximate 5.8 percent increase from the current <br /> rates. (Please note the Health Insurance Trust rates are contingent on <br /> a minimum participation rate of 65 percent. The Trust reserves the <br /> right to recalculate the rates effective January 1, 1997 ifparticipation <br /> drops below 65 percent after open enrollment.) <br /> • Healthsource's rate quote provides for an approximate six percent <br /> decrease from the current rates. <br /> • As to the sole provider option,the NCACC Health Insurance Trust <br /> quote for entering into a sole provider contract(Blue Cross plans only <br /> and elimination of Healthsource)provides for a.4 percent decrease <br /> from the current Blue Cross rates. <br /> The approved budget for fiscal year 1996-97 included funding for up to a <br /> seven percent increase in health insurance effective January 1, 1997. <br /> Taking account of the budgeted increase and the rate quotes from both <br /> plans: <br /> • Option A would result in a cost savings over the amount budgeted of <br /> approximately $25,000 for 1996-97 (from January 1 through June 30). <br /> Option B would result in an estimated cost savings in 1996-97 over the <br /> amount budgeted of approximately $55,000. <br /> • Option A would result in an increase in cost over the current plans for <br /> fiscal year 1996-97 of about$23,000. Option B (sole provider option) <br /> would result in an estimated$7,000 decrease in cost over the current <br /> health insurance cost. <br /> • In comparison to Option A, Option B saves an estimated$30,000 in <br /> 1996-97. <br /> Impact of the Sole Provider Contract(Option B) <br /> Option B provides for a sole provider or exclusive contract for the two <br /> Blue Cross plans through the NCACC Health Insurance Trust. If the <br /> County entered into a sole provider contract for the Blue Cross plans,this <br /> would mean discontinuing the current Healthsource plan effective <br />