Agenda - 10-03-2006-5e - Laserfiche WebLink

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effective July 1, 2006. On February 6, 2006, the NCACC Executive Director responded to the Manager's concerns.by letter stating that CIGNA had agreed to honor all of the current plan designs used by Orange County members and that current benefits of member employees received would remain the same (Attachment 1). With this commitment in place, the County proceeded to partner with NCACC and CIGNA to prepare employees for the transition. On March 24, 2006, employees were notified of 22 sessions at various locations in the County where representatives from CIGNA and NCACC would provide an overview of the transition process (Attachment 2). In addition, full information packets from CIGNA were mailed to employees' homes, and were available in the Personnel Department by late May. Post-CIGNA Transition Actions After the July 1, 2006 transition to CIGNA, the Personnel Department identified and reported to the Manager the initial problems that Orange County employees, retirees and their dependents were experiencing utilizing their health and pharmacy benefits.. On July 27, 2006, the Manager addressed his deep concern over the problems encountered during the transition to CIGNA (Attachment 3). On August 10, 2006, the NCACC Executive Director addressed those concerns and provided an information attachment on "What's Enhanced/What's Different" (Attachment 4). The senior management team was provided a copy of the NCACC's letter and on August 23, 2006, the Benefits Manager and HR Director met with the employee consortium to hear their concerns and provide them with an update on the transition. During that meeting the number one reported concern related to vision care. A subsequent meeting with department heads to update them on the transition revealed the same concern. A meeting was coordinated with NCACC and CIGNA to address the issue of vision care, and, on September 21, 2006, an email was sent to all employees with the NCACC response to vision benefits concerns (Attachment 5). During the first 90 days of the transition from BCBSNC to CIGNA, there has been a determined effort to address and resolve employee health benefit concerns and problems resulting from the transition. During this initial period, the Personnel Department met with Department Heads, the Employee Consortium and individual employees to identify and resolve any outstanding health benefit related issues. Finally, several requests had been made in July and August for NCACC to provide the Personnel Department with the renewal rate quotation. The NCACC believed that the rate was normally not provided until October. This was incorrect. The renewal rate quotation was provided only after a meeting in which the Personnel Department provided historical documentation to show that the rate had been provided in early September. This abstract is submitted for the October 3, 2006 consent agenda to keep us on administrative track in developing benefits packets for the October 20, 2006 -November 3, 2006 Open Enrollment. Current Status The County has received a renewal rate quotation for employee health insurance effective. January 1, 2007. The renewal rates quoted by the NCACC Health Insurance Trust represent a 1.9 percent increase. The budget outlined for the 2006 plan year is based on a 16.0 percent increase in expenditures. The Manager recommends that the Board approve the renewal of the County's contract for health insurance coverage with the North Carolina Association of County Commissioners Health Insurance Trust, and that the Health Insurance Budget for the 2006 plan year be adjusted to 1.9 percent. Additional information is provided below.