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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: October 3, 2006 <br />Action Agenda <br />Item No. ,5 - ~ <br />SUBJECT: Employee Health Insurance for 2007 <br />DEPARTMENT: Personnel PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />1) 2/6/06 NCACC Letter to County <br />Manager <br />2) 3/24/06 Benefits Manager Memo to <br />County Employees <br />3) 7/27/06 County Manager Letter to <br />NCACC <br />4) 8/10/06 NCACC Response Letter to <br />County Manager <br />5) 9/21/06 Personnel Director Email to <br />County Employees Addressing <br />Employees' Vision Benefits Concerns <br />6) Health Insurance Estimated Costs for <br />2006-07 (Chart) <br />7) 2007 Health Insurance Rates (Chart) <br />INFORMATION CONTACT: <br />Tyrone Jackson, Personnel Director <br />(919) 245 - 2550 <br />Michael Edmonds, Benefits Manager <br />(919) 245 - 2558 <br />PURPOSE: To consider renewal of employee health insurance plans through the North <br />Carolina Association of County Commissioners (NCACC) Health Insurance Trust effective <br />January 1, 2007. <br />BACKGROUND: <br />Notification of Change in Plan Administrators for Health and Pharmacy Services <br />In December 2005, the County Manager was notified of the Group Benefits Pool Board of <br />Trustees' decision to end the Pool's service contract with Blue Cross and Blue Shield of North <br />Carolina (BCBSNC) effective June 30, 2006. The Manager was further notified that effective <br />July 1, 2006, the Pool's Board had chosen CIGNA and Caremark to serve as the new plan <br />Administrators for health and pharmacy services. This notification arrived following Orange <br />County's contract renewal with the North Carolina Association of County Commissioners Health <br />Insurance Trust (NCACC), and had not been discussed during the renewal process. At the time <br />Orange County renewed its health insurance contract with the NCACC, BCBSNC served as the <br />third party administrator. <br />Pre-CIGNA Actions <br />On February 1, 2006, the County Manager and key staff met with the NCACC Marketing <br />Representative to discuss the alternative platform the Group Benefits Pool would have in place <br />