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

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7 basis. Calculating the subsidy in this way provides for more equitable handling and is easier to explain and communicate. In Options B and C, the percentage used is 42 percent. The amount is calculated using the BC/BS Traditional Plan as the base plan, determining 42 percent of each dependent coverage category and then applying that same dollar amount to dependent coverage under the other plans. Attachment 5 shows the dependent care subsidies provided by area local government employers. Health Insurance Waiver Option The County currently provides an option where an employee may waive health insurance coverage, if he or she has health insurance coverage through another provider, and receive a payment of$67.50 per month in lieu of coverage. The Board had asked that Personnel revisit this option as part of the 1996 health insurance review. 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. Among seven area local government employers surveyed, five (Carrboro, Cary, Chapel Hill, Durham County and Wake County)permit the employee to decline health insurance coverage and two (Durham City and Raleigh) do not. Of the five who permit it,two (Cary and Durham County)require the employee have health insurance elsewhere and these same two provide for the employee to receive a payment in lieu of insurance (Cary - $62.50 per month and Durham County - up to $12 per month). If the County eliminated the waiver option and the 46 employees currently participating elected health insurance, additional funds ranging from$69,000 to $156,000 (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. 401(k) Plan Option The health insurance options presented and, in particular, Option C provide the opportunity for significant cost savings. An alternative for the Board's consideration is to use a portion of that cost savings to enhance the current employee benefits package. Many area local government employers provide for an employer contribution to a 401(k)plan for general government employees in addition to the five percent