Agenda - 6-b - Resolution Authorizing the Participation in the North Carolina Health Insurance Pool (NCHIP)

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I►: local government member has representation on the Pool's Board which is vital to the long -term success of the pool. The Executive Board will be responsible for reviewing financials, evaluating vendor relationships, evaluating new members /partners, discussing trends and innovative strategies in planning stability in funding health insurance costs. Members of NCHIP retain the right to create and change their plan designs. Additionally, Orange County may have the possibility of collaborating with local Fire Districts and smaller municipalities to encourage participation in the pool. Other benefits of NCHIP participation include: • No reserves are needed for an internal service fund. • No penalty to withdraw from the pool; only a one -year commitment is required. • Full transparency and reconciliation provided by independent accounting and auditing firms selected by the NCHIP Board. • Volatile claims over $40,000 become a fixed cost offering more predictable and stable budgeting. • Ownership /partnership of NCHIP allows Orange County to help drive decisions. • Participation on the onset of co -op allows input to the structure of the by -laws. • Orange County pays the same monthly bill to NCHIP (approximately $1.1 million); offering more stability in cash flow and the pool administers payment of claims. • Return of savings as dividends directly to Orange County. • Possibility of targeting dividends to Other Post - Employment Benefits (OPEB) funding. With NCHIP vendor partners would include BlueCross BlueShield of North Carolina (BCBSNC) for network and claims administration and BCBS Prime Therapeutics for pharmacy benefits management for three years. Thereafter, additional vendor /partnership relationships can be considered and recommended to the BOCC. Stop loss coverage is currently out to bid. NCHIP leverages partners for best -in -show contracts and pricing. Overall, participation in NCHIP would mean the County would terminate its current vendor relationships with UnitedHealth care and Envision Rx. NCHIP is fundamentally different than the North Carolina Association of County Commissioners (NCACC) insurance pool participation in that: • NCHIP is member - driven, giving its members the authority to make decisions to drive the pool forward. • NCHIP believes a long -term partnership with BCBSNC is foundational to the success of the pool while, at the same time, allowing NCHIP members the flexibility to offer additional network and pharmacy solutions if there is a need to do so. Numerous local governments across the State are currently in the process of evaluating their participation in NCHIP. FINANCIAL IMPACT: An increase of $750,000 in the FY2018/2019 Health Insurance appropriation. SOCIAL JUSTICE IMPACT: The following two Orange County Social Justice Goals are applicable to this agenda item: