Agenda - 03-05-2015 - 1 - Laserfiche WebLink

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1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 5, 2015 Action Agenda Item No.1 SUBJECT: Updatesand Recommendationsfor Employee Benefits Effective July 1, 2015 DEPARTMENT:Human ResourcesPUBLIC HEARING: (Y/N)No ATTACHMENT(S):INFORMATION CONTACT: A.BenefitsHighlights Brenda Bartholomew, Human Resources Director, (919)245-2552 B.Review of Health and Dental Rates Diane Shepherd, Benefits Manager, (919)245-2558 PURPOSE: To receiveinformation on the Manager’s recommendations regardingemployee benefit programs effective July 1, 2015through June 30, 2016. BACKGROUND: The County has been self-funded since January 1, 2014 for medical, pharmacyand dental claims. The County pays for all claims incurred by members enrolled in the UnitedHealthCare and Delta Dental programs. In addition, the County paysadministrative fees which includestop-loss coverageto UnitedHealthCare. The administrative fee is $107.03 permember per month includingthe stop loss coverage of $100,000 per person. Further, the County iscurrentlytransitioning from a twelve-month calendar plan year to a twelve-month fiscal planyear, July 1 through June 30. Therefore, a one time, six-month plan year was put in place effective January 1, 2015 through June 30,2015. Atwelve-month plan year will begin July 1, 2015 and end June 30, 2016 to align with the County’s fiscal year. In February 2015, the Health Insurance Advisory Committee, under the direction of County Purchasing Agent David Cannell, participated in the Request for Proposal (RFP) process for the selection of a Broker of Record for the administration of benefit programs which include but are not necessarily limited to health, dental, vision, and other voluntary programs for employees and retirees. The Manager made recommendation to the BOCC as per Action Agenda Item No. 7-a of the March 3, 2015 meeting toselect Arthur J. Gallagher & Co. as the Broker of Record. Overall, enrollment numbers for the six-month benefit periodwhich wereeffective January 1, 2015 haveremained consistent, with aslight decreasein the High Deductible Health Plan membership compared toFY 2014/15. The number of employees waiving health insurance coverage has increased primarily due to employees obtaining coverage elsewhere, usually a spouse’s benefit plan. Attachment A shows benefitsenrollments as of February 16, 2015. The County continues to administer voluntary benefit programs including vision coverage, short term disability, whole life insurance, critical illness and accident insurance available through the benefit of a payroll deduction. At this time, there are no plans to change the voluntary benefit programs.