Orange County NC Website
18 <br /> 1 The Board agreed by consensus. <br /> 2 <br /> 3 c. Recommendations for Employee Health Insurance and Other Benefits <br /> 4 The Board considered approving the Manager's recommendations regarding employee <br /> 5 health and dental insurance and other employee benefits effective July 1, 2019 through June <br /> 6 30, 2020. The Manager is recommending no increase in appropriations for the FY2019/2020 <br /> 7 Health and Dental budget and is also recommending that the County continue to participate as <br /> 8 a member of the North Carolina Health Insurance Pool (NCHIP). <br /> 9 <br /> 10 Brenda Bartholomew, Human Resources Director, introduced David Costa from <br /> 11 Gallagher. <br /> 12 Brenda Bartholomew is recommending no increase. She reviewed the information <br /> 13 below: <br /> 14 <br /> 15 BACKGROUND: The County provides employees with a comprehensive benefits plan, <br /> 16 including health, dental and life insurance, an employee assistance program, flexible <br /> 17 compensation plan and paid leave for permanent employees. Additionally, the County <br /> 18 contributes to the Local Governmental Employee's Retirement System and a supplemental <br /> 19 retirement plan. <br /> 20 <br /> 21 The County has been self-funded since January 1, 2014 for medical and pharmacy plans and <br /> 22 continues to be self-insured for the dental plan. The County also transitioned from a twelve- <br /> 23 month calendar plan year to a twelve-month fiscal plan year in 2015 aligning with the County's <br /> 24 fiscal year. In February 2015, the Board of County Commissioners approved Gallagher Benefit <br /> 25 Services (GBS) as Broker of Record for the administration of the benefit programs, which <br /> 26 include health, dental, vision, and other voluntary programs for employees and retirees. <br /> 27 <br /> 28 In FY2016/2017, the Board of County Commissioners approved the County Manager's <br /> 29 recommendation to continue with UnitedHealth Care (UHC) as the County's Third Party <br /> 30 Administrator for health insurance programs and granted authority to the County Manager to <br /> 31 renew the Third Party Administrator contract with UnitedHealth Care. UnitedHealth Care also <br /> 32 provided $25,000 for wellness programs. <br /> 33 <br /> 34 In FY2017/2018, the Board of County Commissioners approved "carving out" pharmacy <br /> 35 coverage from UnitedHealth Care and contracted with Envision Rx as the County's Pharmacy <br /> 36 Benefit Manager (PBM). This resulted in an expenditure reduction of$141,000 annually for <br /> 37 FY2017/2018. The FY2017/2018 total County budget for health insurance for employees and <br /> 38 pre-65 retirees was approximately $11.6 million dollars. <br /> 39 <br /> 40 For FY2018/2019, the Board of County Commissioners approved the County's participation in <br /> 41 the North Carolina Health Insurance Pool (NCHIP), which included Blue Cross Blue Shield as <br /> 42 the health care provider, and approved increasing Health Insurance funding (County share) by <br /> 43 $750,000 and the Dental Insurance funding (County share) by $125,521. The County <br /> 44 maintained current premium equivalent rates for health insurance and dental coverage for <br /> 45 employees and pre-65 retirees. The total FY2018/2019 budget was projected to be <br /> 46 approximately $13.3 million (including health savings account contributions) based on <br /> 47 increases to current enrollment of 1,068 employees and pre-65 retirees. The County <br /> 48 contribution was projected at $11.9 million; representing a 5.9 percent increase. <br /> 49 <br /> 50 Health Insurance <br /> 51 <br />