Agenda - 02-06-2018 6-c - Recommendations for Employee Health Insurance and Other Benefits

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K The current fiscal year budget for dental coverage is $305,856. Based on current enrollment, the County share for the FY2017/2018 budget is projected year end at $420,952; representing a budget shortfall of $115,096. The County's expenditure for the FY2018/2019 dental budget is projected at $431,377. The additional funding is partly driven because of an increase in the enrollment for dental coverage. By accounting for the increased enrollment and the current budgetary shortfall for FY2017/2018, an increase of $125,521 is projected for the FY2018/2019 budget. Attachment 1 demonstrates further the breakdown of the County and employee contribution relationship for dental insurance. Monthly rates for dental coverage are listed below: Current Dental plan Premium Equivalent FY2017/2018 Premium Equivalent FY2018/2019 Employee Only $29.76 $30.49 Employee +Child(ren) $80.31 $82.32 Employee +Spouse $71.39 $73.17 Employee +Family $104.11 $106.71 FINANCIAL IMPACT: The proposed FY2018/2019 Health Insurance appropriation increase is $750,000, and the proposed FY2018/2019 Dental Insurance appropriation increase is $125,521. • SOCIAL JUSTICE IMPACT: The following two Orange County Social Justice Goals are applicable to this agenda item: • GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND INEQUITY The fair treatment and meaningful involvement of all people regardless of race or color; religious or philosophical beliefs; sex, gender or sexual orientation; national origin or ethnic background; age; military service; disability; and familial, residential or economic status. • GOAL: ENSURE ECONOMIC SELF - SUFFICIENCY The creation and preservation of infrastructure, policies, programs and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. RECOMMENDATION(S): The Manager recommends that the Board approve the Manager's recommendations regarding employee health and dental insurance and other employee benefits effective July 1, 2018 through June 30, 2019, which will require a $750,000 funding increase funding for the FY2018/2019 Health Insurance appropriation, and a $125,521 funding increase the FY2018/2019 Dental Insurance appropriation; and maintaining current premium equivalent rates for health insurance and dental coverage for employees and pre -65 retirees.