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24 <br /> contributes to the Local Governmental Employees' Retirement System and a supplemental <br /> retirement plan. <br /> Staff provided relevant information related to the recommendations of this abstract to the <br /> Board of County Commissioners at the March 29, 2016 Work Session Meeting. <br /> The County has been self-funded since January 1, 2014 for medical and pharmacy plans and <br /> continues to be self-insured for the dental plan. The County transitioned from a twelve-month <br /> calendar plan year to a twelve-month fiscal plan year in 2015 aligning with the County's fiscal <br /> year. In February 2015, the Board of County Commissioners approved Gallagher Benefit <br /> Services (GBS) as Broker of Record for the administration of benefit programs, which include <br /> health, dental, vision, and other voluntary programs for employees and retirees. <br /> Since the County's insurance plan is self-funded, the County uses a third party administrator <br /> (TPA) to administer and manage claims. To take advantage of changing market dynamics and <br /> services, the County periodically solicits proposals from companies offering TPA services. On <br /> behalf of Orange County, Gallagher Benefit Services (GBS) conducted a competitive <br /> solicitation for service consideration in FY2016-2017. <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 <br /> employee per month with a guaranteed fee for 2 years and a 3 percent rate cap for July 1, <br /> 2018's renewal; this equates to approximately $150,000 savings. The difference between the <br /> top two competitors was $6,500 for annual fixed costs. The variable cost or the <br /> utilization/claims costs 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 <br /> budget. In addition, no plan design changes are recommended. All covered benefits, co-pays, <br /> co-insurance and deductibles are expected to remain the same. Administrative fees and <br /> claims utilization are considered when setting premium equivalent rates. The administrative <br /> fee savings of $150,000 represents approximately 1.29 percent of the current FY budget <br /> ($11.6 million). The administrative fee reduction is projected to be absorbed within claims <br /> utilization; therefore the Manager is not recommending a change to the current year budget or <br /> premium equivalents for FY2016-2017. <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- <br />