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

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Based on the 22.3 percent quoted renewal rate for 2006, the cost of the County contribution for individual coverage and dependent coverage is greater than the amount budgeted for health insurance for 2005-06. In dollars, this is an increase of $517,817 for 2005-06 or an increase of $156,792 over the budgeted amount of $361,024, Available Options to Reduce Proposed Rate Increase Recognizing the overall cost of the rate increase quote provided by the NCACC and the significant amount over the 2005-06 health insurance budget, staff conferred with our health insurance providers to identify possible strategies for reducing the amount of the County's rate increase, while simultaneously preserving the high quality of our health plans, There are several options available for reducing the renewal rate increase quoted by the NCACC Health Insurance Trust, These are summarized below. More detailed information as to cost is provided in Attachment 2: 1. Option 1 -Renew the Contract with the NCACC Health Insurance Trust As Is This option would continue County health insurance benefits at their present level, This option requires a 22.3 percent budget increase. This exceeds the amount budgeted far 2005-06 and would require $156,792 in additional funding. 2, Option 2 -Increase the Physician Office Visit Co-Pays With this option, the co-pay for a primary care physician office visit increases from $10 to $20, and far a specialist visit from $20 to $30 for both plans, This option requires a 20.3 percent budget increase. This exceeds the budget for 2005-06 and requires $110,350 in additional funding. This option affects all physician visits by covered employees and their dependents, 3, Option 3 -Increase the Prescription Co-Pay Tiers With this option, the co-pay tiers for prescription drugs increase from $5 (generic)/$15 (preferred brand name)/$30 (non-preferred brand name) to $10/$20/$35 respectively for both plans. Option 3 requires a 19.1 percent budget increase. This exceeds the amount budgeted for 2005-06 and requires $82,485 in additional funding, This option affects all prescriptions obtained by covered employees and their dependents. 4, Option 4 -Increase Both Physician Office Co-Pam and Prescription Co-Pay Tiers This option combines Options 2 and 3 above, affects both plans and requires a 17,2 percent rate increase. Option 4 exceeds the amount budgeted far 2005-06 and requires $38,366 in additional funding, This option affects all physician office visits and all prescriptions obtained by covered employees and their dependents. 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