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19 <br /> 1 Slide #13 <br /> FY 202+ -27 Expenditure Budget <br /> Personnel Related Cost Assumptions <br /> Wage Adjustment-$930,000 for each 1% <br /> Merit Performance Awards-$455,000 <br /> Increase of Employer Health Insurance Contribution - 13%or$1.7 million <br /> Increase of Employer Retirement Contribution Rate-6% per LGERS rate stabilization program -$1 million <br /> Increase to Retiree Health-9%at$400,000 <br /> Increase to Sheriff Separation Allowance -$250,000 <br /> �T — <br /> ORANGE COUNTY <br /> 13 NORTH CAROLINA <br /> 2 <br /> 3 Vice-Chair Fowler asked what the Sheriff's separation allowance is. <br /> 4 Travis Myren said it is based on years of service and salary up to age 62. He said it is a <br /> 5 state requirement. <br /> 6 Vice-Chair Fowler asked if it is only for the Sheriff. <br /> 7 Travis Myren said it is for all Sheriff's Office employees. <br /> 8 <br /> 9 Slide #14 <br /> FY 202+ -27 Expenditure Budget <br /> Health Insurance Cost Drivers <br /> Consecutive years of 5%+cost increases with no change in benefits Rate Increases for Health Insurance <br /> or costs to employees-premiums,deductibles, ca-pays 915W000 <br /> 3.15.090.00 <br /> Cost drivers for medical benefits 514.00000 51305 <br /> Cancer treatment cost increasing 34%-50%based on new 313.00990 <br /> treatments being put into use and aging population a 312.900.99 <br /> Musculoskeletal surgery cost increasing 11%9 511.0011 00 433 <br /> Psychiatry costs increasing 12'%-specialist utilization above �519.090.00 s10.621 <br /> industry standard 31°'1$2 <br /> � 39.090.W 59.57959.57959.529 <br /> S9.136 <br /> 58.099.00 <br /> x <br /> Cost drivers for pharmacy benefits 52,0NOD <br /> Pharmacy costs up 41% 56.90000 <br /> 2019 x020 3°21 2022 N71 2034 2025 2026 2922 <br /> Use of GLP-1's for weight toss has increased by 5 times-coverage r-A Yee, <br /> adds$1.1 million to the cost of the health plan <br /> -Employee ONA Tcetlrtwnal hen <br /> Gther employers that cover GLP-1's have also required a"catch- <br /> up"adjustment due to high demand `^ <br /> 14 ORARN HE COUNTY <br /> 10 <br />