Agenda - 10-03-2005-9a - Laserfiche WebLink

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Plan Year Percentage Increase 2005 -3.6% 2004 13,8% 2003 25.0% 2002 8.0% 2001 18.9% 2006 Rate Quote The NCACC Health Insurance Trust has provided renewal rate quotations effective January 1, 2006 for the current health plans as follows: Plan Rate Increase Blue Cross Blue Care Plan 22.3% Blue Cross Blue O tN ions, Plan 22.3% The increase in rates for the Bltae Cross Blue Care and Blue Options Plans is due largely to the County's claims experience during the 2005 plan year to date. There were overall increases in utilization frequency and in cost per occurrence. The County was at or above pool averages in key areas including outpatient hospital services (including diagnostic testing), and prescription drug utilization. In addition, the NCACC Health Insurance Tnist has included an increase in health plan administrative costs, resulting from an increase in its administration charges from Blue Cross. Attachment 1 provides additional information on Orange County's health insurance experience and an update on the employee wellness program now getting underway. In conjunction with the renewal, the NCACC Health Insurance Trust has advised of the following updates to the Blue Cross plan benefits: ^ Addition of four obesity assessment visits per benefit period. ^ Addition of coverage for FDA approved weight loss drugs for the long-term treatment of obesity. ^ Availability of six nutritional visits per benefit period for members who are enrolled in a Blue Cross Blue Shield disease management program (such as cardiac disease), or weight management program, ^ Specified self-injectable drugs (such as Imitrex far migraines) only will be covered through pharmacy benefits, Employees will not be allowed to have self-injectable dn~gs administered in a physician's office, Budget for Fiscal Year 2005-06 The County budget for fiscal year 2005-06 provides funding for up to a 15,9 percent health insurance increase effective January 1, 2006. In dollars, this is $361,024 budgeted for the projected increase.