Agenda - 03-16-2021; 6-a - Recommendations for Employee Health Insurance and Other Benefits

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1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 16, 2021 Action Agenda Item No. 6-a SUBJECT: Recommendations for Employee Health Insurance and Other Benefits DEPARTMENT: Human Resources ATTACHMENT(S): INFORMATION CONTACT: 1. Breakdown of the Total Health Brenda Bartholomew, Human Resources Insurance Budget by Enrollment Director, (919) 245-2552 PURPOSE: To approve the Manager's recommendations regarding employee health and dental insurance and other employee benefits effective July 1, 2021 through June 30, 2022. The Manager is recommending no increase in appropriations for the FY2021/2022 Health and Dental Budget and is also recommending that the County continues to participate as a member of the North Carolina Health Insurance Pool (NCHIP). BACKGROUND: The County provides employees with a comprehensive benefits plan, including health, dental and life insurance, an employee assistance program, flexible compensation plan and paid leave for permanent employees. Additionally, the County contributes to the Local Governmental Employee's Retirement System and a supplemental retirement plan. The County's health plan has been self-insured since 2014. On February 6, 2018, the Board of County Commissioners (Action Agenda Item 4-b) approved joining NCHIP and in FY2018/2019 the County became an inaugural member of the North Carolina Health Insurance Plan (NCHIP) as permissible under Article 23 of Chapter 58 of the North Carolina General Statutes (the "Local Government Risk Pool Act"). North Carolina Law allows local governments to enter into contracts to establish health insurance pools as a means of providing health insurance to employees and its membership offers economies of scale and risk pooling to members as a means in providing financial stability in the administration of health insurance programs. NCHIP operates with a Board of Directors with members having a vote and say in how NCHIP operates. Each local government member has representation on NCHIP's Board. The Executive Board is responsible for reviewing financials, evaluating vendor relationships, evaluating new members/partners, discussing trends and innovative strategies and planning stability in funding health insurance costs. Membership allows counties, cities and towns across North Carolina to work collaboratively in creating a stable, predictable, and sustainable health care program. NCHIP currently contracts with Blue Cross Blue Shield of North Carolina (BCBSNC) and Prime Therapeutics, a division of BCBSNC, to administer medical and prescription claims for its members.