Agenda - 04-21-2015 - 6a - Laserfiche WebLink

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12 1 some or all of their deductible in the short plan year, and will then incur a second deductible in 2 FY 2015/16. AJG has projected a cost of$100,000 to mitigate the impact of deductibles paid by 3 employees because of the plan change from a calendar year to a fiscal year. These costs 4 represent making employees whole by giving credit to those who will have paid two deductibles 5 within the 18-month period (January 1, 2015 through June 30, 2016). 6 7 Dental Insurance 8 The County will continue providing dental coverage with Delta Dental. The premium rate 9 charged for employees with dependent coverage has not increased since 2007, and the 10 County's reserve fund has been able to sustain increases in claims and administrative fees. 11 The rate for dental coverage is expected to increase 15% for Plan Year 2015/16 to sustain an 12 adequate reserve for future claims. This is an increase of$70,000. 13 14 Commissioner Dorosin asked if it is accurate to say that the rate of dental coverage is 15 going up 15 percent, and $70,000 more needs to be put in to cover this increased rate. 16 Brenda Bartholomew said the County contribution for this will be $40,000, and the other 17 $30,000 will be from the employees. She said this increase will equate to $5 per month for 18 individuals and $10 per month for families. 19 Commissioner Dorosin said this sort of straightforward explanation is what he needs to 20 see. 21 Wesley Grigston said the last piece of the discussion is regarding the shortened 6 22 month plan year. He said this creates the challenge of what to do with people who have begun 23 tracking, or have met their deductible as of July 1st. He said with United Healthcare there are 24 two options: 1) give credit for the deductible they have already met or begun to meet; or 2) do 25 not give credit, and reset back to zero. He said this cost is projected by looking at 6 months of 26 the previous plan year and the money spent towards deductibles. He said this number for the 27 PPO plan, in network, was $89,000. He said this cost would be projected to be roughly the 28 same for the upcoming year. He said the recommendation is to roll the deductible amounts 29 over into the next plan year. 30 Brenda Bartholomew said this was a reiteration of a discussion with the County 31 Manager about making the employees whole after the decision was made to transition to a 32 fiscal year. She said this is why money is being put into the budget to mitigate the possibility of 33 people having to pay two deductibles. 34 Bonnie Hammersley said the hope was to have a full 18 month plan, but that was not 35 feasible. She said lowering the deductible to half would have harmed the employees by raising 36 premiums. She said this was a way to fix this issue without affecting the employees' premiums. 37 Commissioner Rich asked if this locked the County into using United Healthcare (UHC) 38 for the next 18 months. 39 Brenda Bartholomew said the plan is to look at the 2016-17 enrollment period as the 40 time for Gallagher to pursue new quotes. 41 Bonnie Hammersley said the first step in this process was a request for proposals (RFP) 42 for the broker of record, and this was awarded to Arthur J Gallagher. She said the next step is 43 to get RFPs in the competitive market for other providers. She said the timing is not good, so 44 the County will be with UHC for the next 12 months, and then an RFP will be distributed. 45 46 A motion was made by Commissioner Jacobs, seconded by Commissioner Pelissier to 47 approve the County Manager's recommendation of no increase for medical and pharmacy 48 costs, $100,000 increase for mitigating the impact of employees paying double deductibles and 49 a $70,000 increase for dental insurance. 50