Orange County NC Website
23 <br /> 1 1) Authorize Orange County to enter into a Professional Services Agreement with HH <br /> 2 Architecture of Raleigh, NC for the design services for the Environment &Agriculture <br /> 3 Center capital project upon final review of the County Attorney; and <br /> 4 <br /> 5 2) Authorize the Chair to execute the initial Agreement and any subsequent design <br /> 6 amendments for contingent and unforeseen design requirements on behalf of the <br /> 7 Board. <br /> 8 <br /> 9 VOTE: Ayes, 6; Nays, 1 (Chair McKee) <br /> 10 <br /> 11 c. Recommendations for Employee Health Insurance and Other Benefits <br /> 12 The Board considered approving the Manager's recommendation to contract with <br /> 13 United Health Care regarding employee health and dental insurance and other employee <br /> 14 benefits effective July 1, 2016 through June 30, 2017. <br /> 15 Brenda Bartholomew, Human Resources Director, reviewed the following information: <br /> 16 <br /> 17 BACKGROUND: The County provides employees with a comprehensive benefits plan, <br /> 18 including health, dental and life insurance, an employee assistance program, flexible <br /> 19 compensation plan and paid leave for permanent employees. Additionally, the County <br /> 20 contributes to the Local Governmental Employees' Retirement System and a supplemental <br /> 21 retirement plan. <br /> 22 <br /> 23 Staff provided relevant information related to the recommendations of this abstract to the Board <br /> 24 of County Commissioners at the March 29, 2016 Work Session Meeting. <br /> 25 <br /> 26 The County has been self-funded since January 1, 2014 for medical and pharmacy plans and <br /> 27 continues to be self-insured for the dental plan. The County transitioned from a twelve-month <br /> 28 calendar plan year to a twelve-month fiscal plan year in 2015 aligning with the County's fiscal <br /> 29 year. In February 2015, the Board of County Commissioners approved Gallagher Benefit <br /> 30 Services (GBS) as Broker of Record for the administration of benefit programs, which include <br /> 31 health, dental, vision, and other voluntary programs for employees and retirees. <br /> 32 <br /> 33 Since the County's insurance plan is self-funded, the County uses a third party administrator <br /> 34 (TPA) to administer and manage claims. To take advantage of changing market dynamics and <br /> 35 services, the County periodically solicits proposals from companies offering TPA services. On <br /> 36 behalf of Orange County, Gallagher Benefit Services (GBS) conducted a competitive solicitation <br /> 37 for service consideration in FY2016-2017. <br /> 38 <br /> 39 Currently, UnitedHealth Care (UHC) is the Third Party Administrator (TPA) for the County's <br /> 40 Medical Plan. GBS conducted a TPA Marketing Analysis. UHC, Meritain/Aetna, CIGNA and <br /> 41 BCBSNC provided quotes to GBS for review and recommendation by the Manager. With <br /> 42 careful consideration of all proposals, it is recommended to continue TPA services with <br /> 43 UnitedHealth Care. <br /> 44 <br /> 45 The UHC renewal was negotiated from $41.50 per employee per month to $29.50 per <br /> 46 employee per month with a guaranteed fee for 2 years and a 3 percent rate cap for July 1, <br /> 47 2018's renewal; this equates to approximately $150,000 savings. The difference between the <br /> 48 top two competitors was $6,500 for annual fixed costs. The variable cost or the <br /> 49 utilization/claims costs were essentially identical between the top two competitors. <br /> 50 <br />