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22 <br /> <br />• Member Driven <br />• Financial vehicle <br />• Conservatively funded and reserved <br />• Preserve plan design and vendor selection freedom <br />• Managed by the State’s preeminent public sector vendors <br />• Fully-transparent <br />• Stable, Budgetable, and Predictable <br /> <br />Wes Grigston presented this portion of the PowerPoint: <br /> <br />Making the unpredictable…predictable (graph) <br /> <br />Gregg Aleman presented this portion of the PowerPoint: <br /> <br />Banded Layer (chart) <br /> <br />Individual member 5-year history (chart) <br /> <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 />o Enhanced PBM contracts. Enhanced stop-loss. Buying power on non-medical <br />lines. <br />o Orange will have access to deals of 5,000+ life groups as opposed to 1,000+ <br />life stand- alone <br />• Predictable budgets <br />o Volatile claims over $40K become a fixed cost – the banded layer. <br />o 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 /> <br />5-Year Projections – 7.5% (chart) <br /> <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