Agenda - 03-17-2015 - 7a - Laserfiche WebLink

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1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 17, 2015 Action Agenda Item No. 7 -a SUBJECT: Updates and Recommendations for Emplovee Benefits Effective July 1, 2015 DEPARTMENT: Human Resources ATTACHMENT(S): 1. Benefits Highlights I•Si:Cxlfii� l 019 aiitl1:�- �. PUBLIC HEARING: (Y /N) No INFORMATION CONTACT: Brenda Bartholomew, Human Resources Director, (919) 245 -2552 Diane Shepherd, Benefits Manager, (919) 245 -2558 PURPOSE: To receive information and consider the Manager's recommendations regarding employee health insurance and other benefits effective July 1, 2015 through June 30, 2016. BACKGROUND: The County provides employees with comprehensive benefits including health, dental, life insurance and access to an Employee Assistance Program. The County has been self- funded since January 1, 2014 for medical and pharmacy plans and continues to be self- insured for the dental plan. The County pays an administrative fee and all claims incurred by members enrolled in the United Healthcare and Delta Dental programs. The United Healthcare administrative fee of $143.53 per member per month includes stop -loss coverage of $100,000 per person. Further, the County is currently transitioning from a twelve -month calendar plan year to a twelve -month fiscal plan year, July 1 through June 30. Therefore, a one time, six -month plan year was implemented effective January 1, 2015 through June 30, 2015. A twelve -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 recommended, and the Board of Commissioners approved, the selection of Arthur J. Gallagher & Co. (AJG) as the Broker of Record at the March 3, 2015 regular meeting. Overall, enrollment numbers for the six -month benefit period which were effective January 1, 2015 have remained consistent, with a slight decrease in the High Deductible Health Plan membership compared to FY 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 1 shows benefits enrollments as of February 16, 2015.