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

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6 For an employee hired who does not have health insurance coverage,the impact is County coverage would not begin until the first of the month following employment(the actual time would range from one to 30 days). Summary In summary,there are two health insurance plan options identified for 1997. These are: Option A- Renewal of the current health plans with no change. Option B -Renewal of the current Blue Cross plans through the Health Insurance Trust as a sole provider contract and elimination of Healthsource as a plan option. The net cost savings over the amount budgeted for health insurance for fiscal year 1996-97 under Option A is about$25,000 and under Option B is about$55,000. In comparison to Option A, Option B saves an estimated$30,000 in 1996-97. The impact of implementation of Option B is that about 144 employees currently enrolled in Healthsource would have to change plans and employee choice would be limited to the two Blue Cross plans. Listed below are the recommendations as to Board action for health insurance for 1997. Option A has been recommended because it causes the least disruption to employees and maintains some leverage with providers in negotiating contracts. The net impact of the recommendations is an increase in health insurance cost for 1996-97 over the current cost of approximately $19,000. In comparison to the amount budgeted for 1996-97, it is a reduction from the amount budgeted of about$29,000. Recommendation: The Manager recommends the Board: 1. Adopt Option A-renewal of the current health insurance plans. 2. Authorize staff to negotiate an updated agreement with the NCACC Health Insurance Trust in keeping with the Board's decisions as to health plans for 1997 and authorize the Board Chair to sign the final agreement on behalf of the Board.