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r <br /> -2- <br /> participation. The County's current Blue Cross plans operate on a fully insured <br /> basis. There is no financial liability to the County beyond the monthly premiums <br /> for the contracted period. The County would join the Trust on a"fully insured" <br /> basis but in the context of the Trust as a legal entity this has some different <br /> ramifications. Attachment 2 provides additional information on this area. <br /> B. Health Insurance Waiver Option <br /> Attachment 3 shows the waiver amount,number of employees participating in the <br /> waiver option by year and the cost of the waiver option based on varying <br /> amounts. It also shows the cost if the 46 participating employees enrolled in <br /> employee only health insurance coverage. If the value of the waiver is reduced, it <br /> is possible that at some level some of the employees participating may elect to <br /> enroll in health insurance coverage in lieu of the waiver option and this would <br /> offset the cost savings from reducing the waiver. <br /> C. Health Insurance Dependent Subsidy <br /> Attachment 4 shows the number of employees participating in each dependent <br /> coverage type and the current subsidy for each coverage type if calculated as a <br /> percentage. <br /> The reasons for providing the subsidy for dependent coverage is to partially offset <br /> the employee's cost and make dependent health insurance more affordable for the <br /> employee,particularly the lower salaried employee who might not otherwise <br /> enroll in dependent health coverage. The reason for recommending the subsidy be <br /> calculated as a percentage is to even out the subsidy among the three dependent <br /> coverage types as well as to simplify the calculation and make it more <br /> understandable. <br /> Setting the subsidy at 42 percent maintains the same relative level as currently <br /> provided for employee/spouse coverage. If the current subsidies were averaged, <br /> the average is about 38 percent. Attachment 5 shows the estimated costs for the <br /> 42 percent subsidy as well as the estimated cost if the subsidy were 40 percent or <br /> 38 percent. Attachment 6 shows the monthly amount paid by the employee under <br /> the various options. <br /> D. Recommendation <br /> As to NCACC Trust participation: <br /> It is recommended that the Board adopt the Interlocal Agreement and enter into <br /> the NCACC Health Insurance Trust for 1996. <br /> - - <br />