Agenda - 09-03-1996 - IX-B - Laserfiche WebLink

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5 Since January 1, 1996 one new employee has elected to participate in the waiver and one participating has terminated. As of June 1996, 39 employees are participating in the waiver option. Both Healthsource and Blue Cross have advised that this option has no adverse impact on the County's rates so long as the County requires evidence of health insurance coverage through another provider, as is done presently. If the County eliminated the waiver option and the 39 employees currently participating elected health insurance, additional funds ranging from about $74,000 to $135,000(using current rates)would be required depending on coverage elected. The effect of the waiver option is to reduce the County cost in the instance where an employee has coverage elsewhere and declines coverage instead of enrolling because there is no other alternative. If the Board elects to discontinue the waiver, it is recommended that current employees participating in the waiver be allowed to continue to do so under a "grandfather" provision so that additional funds are not required. Effective Date of Health Insurance Coverage An additional matter considered in this health insurance review has been the effective date of coverage for new employees and any potential for cost savings here. Currently, coverage for a new employee and his or her dependents is effective on the first date of employment. For example, if an employee begins work August 12, health insurance coverage is effective August 12. An alternative is to change this policy to provide that coverage is effective on the first day of the month following the date of employment. For example, if an employee began work on August 12,health insurance coverage would be effective September 1. If such a policy were implemented,the estimated cost savings for FY 1996-97 is approximately $3,550 and on a full year basis is about$7,100,based on current health insurance rates. The cost savings results from elimination of the County cost for employee coverage and dependent coverage for the time prior to the first day of the month. As a practical matter, many employees hired by the County are coming from other jobs and have health insurance coverage which takes them through the first days of employment so in this case the County's coverage is duplicative. It also takes several days for a new employee to get identification cards from the insurance provider,and to be picked up on the provider's system so the employee can use the coverage.