Minutes 09-17-2013 - Laserfiche WebLink

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provided proposals for both a fully insured renewal which is approximately a 6.35% increase and self-funded option which results in no increase. Nicole Clark said the recommendation is to approve option 2, which is the self funded option with an increase of$118 per month to the health savings account. Commissioner Gordon said she appreciated the opportunity to discuss this prior to this meeting. She asked if employees have made any recent comments or statements regarding the plans. Frank Clifton said that this issue has been reviewed with employee relations for the past three years as the County has struggled with increasing costs. He said that most of the employees understand that this is the way to stabilize rates. Commissioner Gordon said she wanted to know if any comments have been made between September 5th and now. Nicole Clark said no. Frank Clifton said this was presented to employees before the last Board of County Commissioners meeting. Commissioner Rich said she is not in favor of the self insured plan. She said she has done some reading about this, and there are a number of issues and concerns. She asked about the plans for hiring administrators for the claims and whether this would be an on-staff person. Tracy McCarty said the insurance company will remain the same. She said that as a self-funded administrator, employees will have the same network with an external party being paid an administrative fee to protect the County against large losses. She said this is not anyone internal. She said this is really only a change in the funding mechanism. She said, as claims come through on a weekly basis, that administrator will request those funds from the County, and the County will fund that. She said anything above the premiums will be retained. Commissioner Rich asked if anyone other than United Healthcare (UHC) had been considered. Tracy McCarty said yes. She said UHC was the lowest and firmest quote. Commissioner Rich said she has concerns with UHC, and she is not supportive of them. Commissioner Price asked if Commissioner Rich's research had suggested any other insurance possibilities. Commissioner Rich said she had looked at Blue Cross Blue Shield, and she was against UHC because the company did not sign on to the Affordable Care Act. Chair Jacobs said the County is operating under a deadline this year, and this discussion can be had next year to change the criteria. He said he voted against UHC in the past, but he realizes that it is late in the game. He said UHC did have a town hall meeting and many concerns were addressed. He said he would like to suggest these town hall meetings be held annually with staff to discuss concerns. Commissioner McKee said he is generally supportive of this; however he questioned the fact that he knows of several counties that go back to the private sector after being self funded. Tracy McCarty said about 90% of the companies her company represents are self funded, and most of the folks who have done this are very positive about it. Commissioner McKee said he attended an ABC board meeting this morning (since the ABC employees are insured with Orange County.) He said the general feeling at that board is that they will be unable to go self funded. He said there were concerns about the County's reasoning.