Minutes 03-17-2015 - Laserfiche WebLink

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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 in 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. Commissioner porosin asked if it is accurate to say that the rate of dental coverage is going up 15 percent, and $70,000 more needs to be put in to cover this increased rate. Brenda Bartholomew said the County contribution for this will be $40,000, and the other $30,000 will be from the employees. She said this increase will equate to $5 per month for individuals and $10 per month for families. Commissioner porosin said this sort of straightforward explanation is what he needs to see. Wesley Grigston said the last piece of the discussion is regarding the shortened 6 month plan year. He said this creates the challenge of what to do with people who have begun tracking, or have met their deductible as of July 1 st. He said with United Healthcare there are two options: 1) give credit for the deductible they have already met or begun to meet; or 2) do not give credit, and reset back to zero. He said this cost is projected by looking at 6 months of the previous plan year and the money spent towards deductibles. He said this number for the PPO plan, in network, was $89,000. He said this cost would be projected to be roughly the same for the upcoming year. He said the recommendation is to roll the deductible amounts over into the next plan year. Brenda Bartholomew said this was a reiteration of a discussion with the County Manager about making the employees whole after the decision was made to transition to a fiscal year. She said this is why money is being put into the budget to mitigate the possibility of people having to pay two deductibles. Bonnie Hammersley said the hope was to have a full 18 month plan, but that was not feasible. She said lowering the deductible to half would have harmed the employees by raising premiums. She said this was a way to fix this issue without affecting the employees' premiums. Commissioner Rich asked if this locked the County into using United Healthcare (UHC) for the next 18 months. Brenda Bartholomew said the plan is to look at the 2016-17 enrollment period as the time for Gallagher to pursue new quotes.