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

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P� 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. The County will continue to partner with representatives of the UNC Wellness @ Work program to offer health screenings to all employees. In the fall of 2014, the Health and Human Resources Departments coordinated flu clinics for employees and Human Resources held two Breast Cancer Awareness Days for mammograms at UNC Radiology in Hillsborough. Staff will be working closely with AJG 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 effective July 1, 2015 through June 30, 2016. AJG 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, AJG is recommending that the premium equivalent remain the same, with no increase for medical and pharmacy costs. To date, no benefit changes are anticipated for FY2015/16 coverage. Health benefits, co -pays, co- insurance and deductibles are expected to remain the same. AJG will continue to work with Staff is analyzing all data relative to benefits and will bring forward any recommendations, if necessary, to the Manager and the BOCC for consideration and approval. Staff and the County Manager discussed with AJG ways to mitigate additional deductible expenses for some employees because of the plan year change from calendar to fiscal. It is estimated that approximately 18 percent of employees and retirees may have met or will meet some or all of their deductible in the short plan year, and will then incur a second deductible in FY 2015/16. AJG has projected a cost of $100,000 to mitigate the impact of deductibles paid by employees because of the plan change from a calendar year to a fiscal year. These costs represent making employees whole by giving credit to those who will have paid two deductibles within the 18 -month period (January 1, 2015 through June 30, 2016). 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% for Plan Year 2015/16 to sustain an adequate reserve for future claims. This is an increase of $70,000. Attachment 2 reflects the increases. FINANCIAL IMPACT: There is no increase for medical and pharmacy costs. However the cost of mitigating the impact of employees paying double deductibles is $100,000. The financial impact of a 15% rate increase for dental insurance is $70,000.