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

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2 The County willcontinue to partner with representatives of the UNC Wellness @ Work program to offer health screenings to all employees.In the fall of2014, the Health and Human Resources Departments coordinated flu clinicsfor employeesand Human Resources held two Breast Cancer Awareness Days(for mammograms) at UNC Radiologyin Hillsborough. Staff will be working closely with Arthur J. Gallagher & Co. to conduct a feasibility study related to wellness and an employee clinic. Health Insurance Open Enrollment for benefits will be held in April 2015 for coverage effectiveJuly 1, 2015 through June 30, 2016.Arthur J. Gallagher & Co. worked with United HealthCare to obtain utilization data for medical and pharmacy cost projections for the FY2015/2016 budget. The data incorporated 24 months of claims utilization including periods of January 2014 through January 2015 (self-funded) and January 2013 through December 2013 (fully insured).After a detailed review, Gallagher is recommending that the premium equivalent remain the same, with no increase for medical and pharmacy costs. To date, nobenefit changesare anticipated for FY2015/16 coverage. Health benefits, co-pays, co-insurance and deductibles areexpected to remain the same. Arthur J. Gallagher & Co. will continue to work with Staff in analyzing all data relative to benefits and bring forwardany recommendations, if necessary, to the Manager and the BOCC for consideration and approval. Staff and the County Manager discussed with Gallagher ways to mitigate the potential of additional out-of-pocket expenses by some employees because of the plan year change from calendar to fiscal. It is estimated that approximately 18percentof employees and retireesmay have metor will meetsome or all of their deductible in the short plan year. Gallagher is in the process of obtaining historical deductible informationfrom UnitedHealthCarefor a complete analysisto determine what is best for Orange County employees and retirees. The projectionis approximately a $100,000 impact to the FY2015/16 budgetto credit employees for deductibles met during short plan year. Dental Insurance The County will continue providing dental coverage with Delta Dental. The premium rate charged for employees with dependent coverage has not increased since 2007, and the County’s reserve fund has been able to sustain increases in claims and administrative fees. The rate for dental coverage is expected to increase 15% forPlan Year 2015/16to sustain an adequate reserve for future claims.Attachment Breflectsthe increases. FINANCIAL IMPACT: The financial impact of a 15% rate increase for dental insurance is approximately $70,000.Further, the cost ofmitigating the impact of employees paying double deductibles and other out of pocket expenses is approximately $100,000. If approved by the Board, all costs will be part of the Manager’s Recommended FY 2015/16 budget. RECOMMENDATION(S): The Manager recommends that the Board discuss the recommendation of the rate increases proposed by Arthur J. Gallagher & Co. for health and dental coverage. Additionally, the Manager recommends that the Board discuss employee insurancebenefits for FY 2015/16.