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Minutes 04-06-2017
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Minutes 04-06-2017
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5/3/2017 10:47:27 AM
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BOCC
Date
4/6/2017
Meeting Type
Budget Sessions
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Minutes
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Agenda - 04-06-2017 - Agenda
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\Board of County Commissioners\BOCC Agendas\2010's\2017\Agenda - 04-06-2017 - Budget Work Session CIP
Agenda - 04-06-2017 - 1 - Discussion of Manager's Recommended FY 2017-22 Capital Investment Plan (CIP)
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\Board of County Commissioners\BOCC Agendas\2010's\2017\Agenda - 04-06-2017 - Budget Work Session CIP
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2 <br /> In FY2016/2017, the Board of County Commissions approved the recommendation of the <br /> County Manager to continue with UnitedHealth Care (UHC) as the County's Third Party <br /> Administrator for health insurance programs and granted authority to the County Manager to <br /> renew the Third Party Administrator contract with 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. UnitedHealth Care will also fund $25,000 for FY 2017/2018 for wellness <br /> programs. <br /> Health Insurance <br /> The FY2016/2017 total adopted budget for health coverage for employees is $8,645,863 and <br /> $2,189,174 for retirees. The net increase for FY2017/18 is $524,433 based on the current <br /> enrollment of employees and participating pre-65 retirees. The net increase assumes that the <br /> pharmacy services will be independent of the UnitedHealth Care contract as described below. <br /> The increase represents 5.05 percent to the County's health insurance appropriation. <br /> An addition to the current plan design is trans-inclusive health care coverage effective July 1, <br /> 2017. Trans-inclusive health coverage includes benefit coverage for the treatment of gender <br /> dysphoria, a condition when a person's gender at birth is contrary to the one with which they <br /> identify. The coverage for the treatment of gender dysphoria allows member access to medical <br /> services based on gender identity and is not restrictive to services associated by a member's <br /> gender at birth. More specifically, services will include cross-sex hormone therapy administered <br /> by a medical provider, genital surgery, and pharmacy therapy, laboratory testing to monitor the <br /> safety of continuous cross-sex hormone therapy, and mental health services including <br /> psychotherapy and associated psychiatric diagnoses. <br /> All other health benefits, co-pays, co-insurance and deductibles will remain the same. The <br /> County Manager is recommending no increase in premium equivalent for employees or <br /> participating pre-65 retirees for FY2017/2018. <br /> The County participated in a Pharmacy Benefit Manager (PBM) Bid Comparison to "carve out" <br /> pharmacy coverage with another PBM for July 1, 2017 coverage. The County evaluated the <br /> PBM marketplace to accomplish two goals: 1) review the current contract with UHC-Optum Rx <br /> and 2) review proposals from other PBM vendors for consideration of changing pharmacy <br /> coverage effective July 1, 2017. <br /> Eights bids were received and two vendors were interviewed, the current vendor UHC-Optum <br /> Rx and Envision Rx. Staff provided the analysis for review and recommendation by the County <br /> Manager. The County Manager is recommending contracting with Envision Rx for pharmacy <br /> benefits. Envision Rx will offer the following: <br /> • Expenditure reduction of$141,000 annually is projected compared to the current <br /> contract with UHC-Optum Rx. <br /> • The County will only be responsible for paying an administrative fee for each <br /> prescription. <br /> dispensed offering more transparency to actual cost because there is no undisclosed <br /> revenue. This is defined as a 100% pass-through offer. <br /> • If Envision Rx negotiates deeper rates with network pharmacies during the contract, the <br />
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