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