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

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^ County claims experience during the 2006 plan year to date. Orange County's net claims during the period of July 2005 through July 2006 were 2.8 percent lower than those incurred during the prior review period. ^ Overall reductions in claims cost on a per member/per month basis. ^ The County was at or below pool .averages in key areas including hospital facility services, inpatient. admissions, emergency room admissions, and hospital outpatient costs (including diagnostic testing). Additionally; the NCACC Health Insurance Trust included an increase in health plan administrative costs. In conjunction with the renewal, the NCACC Health Insurance Trust has advised that there will be no changes to the benefits structure or plan design for the Open Access Plus In-Network Co- Pay Plan, or the Open Access Plus Co-Pay Plan. Budget for Fiscal Year 2006-07 The County budget for fiscal year 2006-07 provides funding for up to a 16.0 percent health insurance increase effective January 1, 2007. In dollars, this is $374,168 budgeted for the projected increase. Based on the 1.9% quoted renewal rate for 2007, the cost of the County contribution for individual coverage and dependent coverage is well within the amount budgeted for health insurance for 2006-07. The budget savings yielded by the actual renewal rates quoted for fiscal year 2006-07 are about $321,761. County Contribution for Employee Health Insurance For the 2007 benefit plan year, the County's contribution for employee health insurance is the: ^ Full cost for individual employee coverage and ^ 52 percent of the cost of dependent coverage based on the Open Access Plus In-Network Co-Pay Plan rate. The County then applied the dollar amount of the dependent contribution calculated based on the Open Access Plus In-Network Co-Pay Plan rate to the Open Access Plus Co-Pay Plan. The County has maintained a dependent subsidy of 52 percent since the 2003 plan year. The draft monthly health insurance plan rates (Attachment 6) are based on renewal of the current plans with the continuation of the current 52 percent dependent subsidy, based on the Open Access Plus In-Network Co-Pay Plan. Continuation of the subsidy at this level maintains a key "family friendly" policy offered by the County that is highly valued by a large number of County employees. This is a.family friendly policy in that it makes health insurance coverage for dependents, whether spouse, domestic partner, children, or entire family more affordable, and thus, accessible. It particularly benefits lower salaried employees for whom dependent health insurance coverage is a significant cost.