Agenda - 10-02-1995 - IX-C - Laserfiche WebLink

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2 Y HealthSource of North Carolina, Inc. (a health maintenance organization). In reviewing health insurance for 1996, Personnel has explored these and other plan options. Personnel has obtained health insurance rate quotes and related benefit and plan operation information on a variety of plan options including: Renewal through the NCACC Health Insurance Trust. Changing the BC/BS Traditional Plan to a Preferred Provider Plan (which is similar to a traditional plan but provides managed care incentives) Entering into a contract for health insurance with a single provider(an exclusive or so-called "sole provider" contract). In obtaining rate quotes and identifying plan options, Personnel has focused on the County's current health insurance providers, Blue Cross and HealthSource. The reason for narrowing this focus is because of the County's experience with these plans, the well established, existing local network of physicians participating in these plans and the existing relationship between County employees and these participating physicians. Cost Saving Options Identified The approved budget for fiscal year 1995-96 included funding for up to a five percent increase in health insurance effective January 1, 1996. Blue Cross and Blue Shield's 1996 rate quote for renewal of the current plans (Traditional and Personal Care Plan)provides for an approximate six percent reduction from the current rates. HealthSource's rate quote provides for an approximate 2.5 percent increase. Taking account of the budgeted increase and the rate quotes from both plans, renewal of the current plans with no other change would result in cost savings over the amount budgeted of approximately $80.080 for 1995-96 (from January 1 through June 30)and$121.394 on a full year basis. Beyond this,three options are presented for consideration. The options that are presented consider the following alternatives(individually or in combination): Participation in the NCACC Health Insurance Trust Changing the Blue Cross/Blue Shield Traditional Plan to a"Preferred Provider Plan" and Entering into a sole provider(exclusive) contract for health insurance. The options identified provide the opportunity for significant additional cost savings. Attachment 1 shows these options and estimated cost savings.