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Agenda - 04-05-2016 - 7-c - Recommendations for Employee Health Insurance and Other Benefits
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Agenda - 04-05-2016 - 7-c - Recommendations for Employee Health Insurance and Other Benefits
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BOCC
Date
4/5/2016
Meeting Type
Regular Meeting
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Agenda
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7c
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Minutes 04-05-2016
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\Board of County Commissioners\Minutes - Approved\2010's\2016
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2 <br /> Currently, UnitedHealth Care (UHC) is the Third Party Administrator (TPA) for the County's <br /> Medical Plan. GBS conducted a TPA Marketing Analysis. UHC, Meritain/Aetna, CIGNA and <br /> BCBSNC provided quotes to GBS for review and recommendation by the Manager. With <br /> careful consideration of all proposals, it is recommended to continue TPA services with <br /> UnitedHealth Care. <br /> The UHC renewal was negotiated from $41.50 per employee per month to $29.50 per employee <br /> per month with a guaranteed fee for 2 years and a 3 percent rate cap for July 1, 2018's renewal; <br /> this equates to approximately $150,000 savings. The difference between the top two <br /> competitors was $6,500 for annual fixed costs. The variable cost or the utilization/claims costs <br /> were essentially identical between the top two competitors. <br /> Wellness funding by the TPA was also considered and UHC was the most competitive. UHC <br /> will fund $25,000 each year for the next three years. The closest competitor was $12,500 <br /> respectively. <br /> Health Insurance <br /> Gallagher Benefit Services (GBS) estimates no change in the FY2016-2017 health care budget. <br /> In addition, no plan design changes are recommended. All covered benefits, co-pays, co- <br /> insurance and deductibles are expected to remain the same. Administrative fees and claims <br /> utilization are considered when setting premium equivalent rates. The administrative fee <br /> savings of $150,000 represents approximately 1.29 percent of the current FY budget ($11.6 <br /> million). The administrative fee reduction is projected to be absorbed within claims utilization; <br /> therefore the Manager is not recommending a change to the current year budget or premium <br /> equivalents for FY2016-2017. <br /> Almost all full time and part time benefited employees participate in the County's group health <br /> insurance plan. As of January 16, 2016, the plan covered 871 employees and 160 County <br /> retirees under the age of 65. Attachment 1 provides information on benefit enrollment for years <br /> 2011 through 2016 and an overview of voluntary enrollment and participation. Attachment 2 <br /> provides monthly premiums for medical programs as well as the cost share between employees <br /> and the County. <br /> Dental and Vision Insurance <br /> Delta Dental is the County's current dental provider and Community Eye Care provides the <br /> County's vision plan. As part of three year contract, the County will continue providing dental <br /> coverage through Delta Dental. The current budget for dental insurance coverage is <br /> approximately $320,000 annually. No increase in premium is recommended for FY 2016-2017. <br /> In fact, the County will improve the dental plan design by removing diagnostic and preventative <br /> services from the annual maximum of $1,200 of covered services to promote preventative oral <br /> health care. The monthly employee cost share of dental and vision premiums is also provided in <br /> Attachment 2. <br /> Other Employee Programs <br /> The County will continue to offer health screenings to all employees. In the fall of 2016, the <br /> Health and Human Resources Departments coordinated flu clinics for employees and Human <br />
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