Orange County NC Website
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1 <br />2 <br />3 <br />4 <br />5 <br />6 <br />7 <br />8 <br />9 <br />10 <br />11 <br />12 <br />13 <br />14 <br />15 <br />16 <br />17 <br />18 <br />19 <br />20 <br />21 <br />22 <br />23 <br />24 <br />25 <br />26 <br />27 <br />28 <br />29 <br />30 <br />31 <br />32 <br />33 <br />34 <br />35 <br />36 <br />37 <br />38 <br />39 <br />40 <br />41 <br />42 <br />43 <br />44 <br />45 <br />46 <br />47 <br />48 <br />49 <br />19 <br />Individual member 5 -year history (chart) <br />Financials for Orange County <br />What's in it for Orange County <br />• Ownership <br />o Help drive the decisions of NCHIP. Become owner /partner of NCHIP. <br />• More buying power <br />• Enhanced PBM contracts. Enhanced stop -loss. Buying power on non - medical <br />lines. <br />• Orange will have access to deals of 5,000+ life groups as opposed to 1,000+ life <br />stand- alone <br />• Predictable budgets <br />• Volatile claims over $40K become a fixed cost — the banded layer. <br />• Annual spend determined before plan year <br />• No reserves /internal service fund <br />o $2 million in reserves goes back into General Fund. <br />• No penalties to withdraw, only requires 1 year commitment <br />• Retain your plan design <br />• Your peers <br />5 -Year Projections — 7.5% (chart) <br />Commissioner Burroughs referred to slide 10, where it says $2 million will go back into <br />the general fund. She asked if this could be explained a bit further. <br />Gregg Aleman said after the County runs out the United Health Care contract, there will <br />be monies freed up to go in other areas. He said these funds were identified out of the <br />County's Comprehensive Annual Financial Report (CAFR). <br />Bonnie Hammersley said if these funds are available, they would only be so one time, <br />and the BOCC would identify use for these one time funds. She said based on the CAFR, and <br />what it actually is, staff would let the Board know what that is. <br />Commissioner Price asked if Gallagher already has contracts. <br />Gregg Aleman said they already have commitments from communities, and are working <br />on more to come. He said Blue Cross /Blue Shield (BCBS) will be the medical provider to this <br />cooperative for a minimum of three years. He said the goal is to eventually be able to get best <br />in show on everything you do, with this pool being as large as some of the largest private sector <br />employers in North Carolina. He said this leads to greater leverage in the marketplace, and <br />better deals year after year. <br />Commissioner Price asked if this is already in existence now. <br />Gregg Aleman said it will start on July 1, 2018. <br />Commissioner Price asked if the plan design would change. <br />Gregg Aleman said the plan design would not change as it is written. <br />Brenda Bartholomew said the County is with United Healthcare now, and changing is a <br />big decision. She said a few years ago this decision arose, and the County remained with <br />United Healthcare. She said staff has run a disruption report, and there will be very little <br />disruption if the County moves to BCBS. She said the County would still have the ability to <br />speak and advocate on anyone's behalf if there is a disruption in service. She said it is not just <br />United Healthcare to BCBS, it is also taking the Envision Rx back to Prime Therapeutics, all <br />under the umbrella of BCBS. She said the staff has stressed to Gallagher Services that the <br />