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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: October 9, 2007 <br />Action Age da <br />Item No. c~ - ~„ <br />SUBJECT: 2008 Employee Health, Dental and Life Benefits Recommendation <br />DEPARTMENT: Personnel PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />1) Participants in Health Plan <br />2) Health Care Claims Experience <br />3) Top 20 Drugs by Patients Use <br />4} Total Monthly Cost by Options <br />5) Total County Cost by Options <br />6) Total Employee Cost by Options <br />7) Rate Increase for Option I <br />8) Rate Increase for Option II <br />9) Rate Increase for Option III <br />10)Rate Increase~for Option IV <br />INFORMATION CONTACT: <br />Michael McGinnis, Personnel Director <br />Extension 2552 <br />Diane Shepherd, Benefits Manager <br />Extension 2558 <br />PURPOSE: To approve the 2008 Employee Health, Dental and Life Benefits Recommendation. <br />BACKGROUND: The County annually reviews and revises the employee benefit plans and <br />makes a recommendation to the Board. This recommendation includes health care, dental <br />care, and term life insurance. The County has requested and received renewal premium rate <br />options for the employee health care plan, dental care plan and life insurance for the plan year <br />effective January 1, 2008. Staff has requested a renewal option for the health care plan- that <br />represented making no changes in the coverage level and 3 additional options that make <br />minimal changes in the coverage while reducing the increases in total premiums. These 4 <br />options have increases in the total premium of 10.7% for no changes in coverage levels to a <br />4.9% increase in premium for copay increases in doctor and pharmacy copays. <br />The dental plan and premium rates will remain the same for 2008: The term life insurance <br />premium rate quoted by MetLife is a 22% decrease over 2007. All Benefit plan rates and the <br />increase in the health care expenditures are within the approved budget. The Manager <br />recommends that the Board approve the renewal of the health care option that increases the <br />health care premium by 8.7% with the increase of doctor copays: The Manager further <br />recommends the approval of dental and life insurance plans. Additional information is provided <br />below. <br />Staff reviewed changes with the Employee Relations Consortium (ERC) and requested <br />feedback from members on preferences relating to changes the members would support for <br />2008. Responses received were fairly split between accepting increases in pharmacy copays <br />and accepting an increase in physician copays. <br />