Agenda - 09-20-2005-9b - Laserfiche WebLink

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4 5, Option 5 -Add Annual $250 Per Member / $750 Per Family Deductible to the Blue Cross Blue Care Plan The $250 deductible applies to inpatient and outpatient hospital services including surgical procedures, and certain diagnostic procedures (such as Magnetic Resonance Imaging Scans -MRIs) for the Blue Care plan, The Blue Options plan benefits would not change, Option 5 requires an overall 16.5 percent budget increase (16.2 percent actual increase in the Blue Care plan and 21,6 percent for Blue Options). This option slightly exceeds the amount budgeted for 2005-06 and requires $19,212 in additional funding over the amount budgeted, This option does not affect primary care and specialist physician office visits, or pharmacy services. 6. Option 6 -Make All Changes in Options 2, 3, 4 and 5 Above This option combines all changes presented in Options 2, 3, 4, and 5 above and has the greatest impact on the benefits provided through the County's health plans. Option 6 includes increases to physician co-pays, prescription drug co-pays, and include a $250 deductible for inpatient/outpatient surgical procedures and diagnostic procedures, This option requires an overall 11,3 percent increase (11,1 percent for the Blue Care plan and 13,2 percent for Blue Options), is within the parameters of 2005-06 health insurance budget and is $101,699 less than the amount budgeted, Manager Recommendation After careful consideration of the proposed rate increase from the NCACC Health Insurance Trust and the options for rate reduction, the Manager recommends implementation of the $250 per member/$750 per family annual deductible for inpatient hospital services and outpatient hospital services (Option 5 above) for the Blue Care plan, The Manager recommends Option 5 for the following reasons: ^ A lessened impact on the County workforce and their dependents as a whole when compared to the other options available. This option will not affect employees on a day-to- day basis, as would increases in physician office co-pays and prescription drug co-pays, This deductible would only be activated for inpatient and outpatient hospital services including surgical procedures, and certain diagnostic procedures such as Magnetic Resonance Imaging Scans (MRIs), ^ This option, as a single item, would have the greatest impact in reducing the proposed increase provided by the NCACC Health Tn~st (from 22.3 percent to an overall 16,5 percent), This reduction would bring the County very close to the amount budgeted for the 2005-06 plan year and would require only $19,212 in additional funding. ^ Given the pace of health insurance increases it is necessary that the County take action to address these rapidly growing costs, Of the available options, this best balances the County and employee needs, Employees have been heavily impacted by gasoline price increases, as has the County. Even with the reduction in the rate increase from 22.3 percent to 16,2 percent far the Blue Care plan, employees with dependent coverage still will experience a 16.2 percent increase in their cost, For many employees the four percent salary increase provided by the Board will not take place until late in 2005 or in 2006. Meanwhile employees must deal with these escalating costs.