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5 <br />Transition from a Calendar Health Coverage Plan Year to a Fiscal Plan Year <br />Currently, all Orange County's benefits plans are administered on a calendar year basis, from <br />January 1 to December 31. The County's Fiscal Year is July 1 to June 30. As such, budgeting <br />for health insurance is currently divided between two fiscal years. The January 1 through <br />December 31, 2014 health care rates were determined in September 2013 even though the <br />timeframe crosses two fiscal years. When the budget is approved in June, the actual rates for <br />the up- coming January renewal are projected and the BOCC does not determine the rates for <br />the upcoming Plan Year until September. The Plan Year may be changed to correspond with <br />the County's Fiscal Year. This transition to a fiscal year structure may be implemented by a six - <br />month renewal, effective January 1 to June 30, 2015. A 12 -month renewal period would begin <br />on July 1, 2015. <br />The cost of health coverage would be determined in Spring 2015, prior to the start of FY 2015- <br />16, in preparation for inclusion in the Annual Budget for FY 2015 -16. Open Enrollment for the <br />Plan Year of July 1, 2015 - June 30, 2016 would be held in the Spring after rate approval by the <br />BOCC. <br />All vendor contracts would be changed to align with the Fiscal Year. Staff will work closely with <br />Mark III Employee Benefits to implement any required changes. <br />2015 Options <br />The adopted budget for FY 2014 — 2015 included a maximum 14.35% increase in health care <br />premiums. The following options for the health insurance renewal administered by <br />UnitedHealthcare are for a six -month renewal period from January to June 30, 2015. <br />Option 1: Renewal of the current two plans, the Point of Service Plan (POS) and the High <br />Deductible Plan (HDP), without any change to plan design for six - months. Employees will <br />continue to pay 2014 rates for dependent coverage. The County will bear the increased cost for <br />dependent coverage for the six -month renewal period. <br />Option 2: Renewal of the two current plans with plan design changes to the Point of Service <br />Plan, with a 9% increase for both plans. The change in plan design for the POS plan increases <br />co -pays for office visits and prescription coverage. Employees will continue to pay 2014 rates <br />and for dependent coverage. The County will bear the increased cost for dependent coverage <br />for the six -month renewal period. <br />IM <br />