Agenda 8-a - Minutes - Laserfiche WebLink

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 22 contributes to the Local Governmental Employee's Retirement System and a supplemental retirement plan. The County has been self- funded since January 1, 2014 for medical and pharmacy plans and continues to be self- insured for the dental plan. The County transitioned from a twelve- month calendar plan year to a twelve -month fiscal plan year in 2015 aligning with the County's fiscal year. In February 2015, the Board of County Commissioners approved Gallagher Benefit Services (GBS) as Broker of Record for the administration of the benefit programs, which include health, dental, vision, and other voluntary programs for employees and retirees. In FY2016/2017, the Board of County Commissioners approved the recommendation of the County Manager to continue with UnitedHealth Care (UHC) as the County's Third Party Administrator for health insurance programs and granted authority to the County Manager to renew the Third Party Administrator contract with UnitedHealth Care. UnitedHealth Care will also fund $25,000 for FY 2017/2018 for wellness programs. For FY2017/2018, the Board of County Commissioners approved "carving out" pharmacy coverage from UnitedHealth Care and contracted with Envision Rx as the County's Pharmacy Benefit Manager (PBM). This resulted in an expenditure reduction of $141,000 for FY2017/2018. The FY2017/2018 total adopted budget was increased by $524,433 or 5.05 percent for the County's health insurance appropriation. The FY2017/2018 total County budget for health insurance for employees and pre -65 retirees is approximately $11.6 million dollars. Health Insurance The total FY2018/2019 health insurance expenditure is projected to be approximately $13.3 million (including health savings account contributions) based on increases to current enrollment of 1,068 employees and pre -65 retirees. The County contribution is projected at $11.9 million assuming that no changes are made to the current employee contribution structure. This represents a 5.9 percent increase in the projected FY2018/2019 budget; or approximately $750,000 (County share). Dental and Vision Insurance Delta Dental is the County's Dental provider and Community Eye Care provides the County's vision plan. The County will continue to provide coverage with Delta Dental and Community Eye Care. In FY2018/2019 no increases in dental premiums for employees is recommended by the Manager. Vision premiums are paid 100 percent by employees and to date no increase has been proposed by Community Eye Care. 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. 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. Brenda Bartholomew presented the PPT below: Recommendations for Employee Health Insurance and Other Benefits