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ORANGE COUNTY <br /> BOARD OF COMMISSIONERS APPENDIX A <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: October 21, 2002 <br /> Action Agenda <br /> Item No. 4 - a <br /> SUBJECT: Employee Health Insurance for 2003 <br /> DEPARTMENT: Personnel PUBLIC HEARING: (Y/N) No <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> 1 — Benefits Change Summary Elaine Holmes, Personnel Director, <br /> 2 — Benefits Changes (PCP/Blue Care Extension 2550 <br /> Plans) <br /> 3 — Benefits Changes (PPO/Blue TELEPHONE NUMBERS: <br /> Options Plans) Hillsborough 732-8181 <br /> 4 - Health Insurance Renewal Options — Chapel Hill 968-4501 <br /> Estimated FY 2002-03 County Cost Durham 688-7331 <br /> 5— Health Insurance Dependent Mebane 336-227-2031 <br /> Subsidy <br /> 6— Draft 2003 Health Insurance Rates <br /> PURPOSE: To consider renewal of employee health insurance plans through the North <br /> Carolina Association of County Commissioners (NCACC) Health Insurance Trust and CIGNA <br /> effective January 1, 2003. <br /> BACKGROUND: In summary, the County has received renewal rates for employee health <br /> insurance effective January 1, 2003. The NCACC Trust renewal rates for the Blue Cross plans <br /> provide for a possible range of increases from 13 to 25 percent, depending on the renewal <br /> option the County selects. The CIGNA renewal provides for a 12.55 percent increase. <br /> Each of the three renewal options is explained below. The Manager is recommending that the <br /> County renew its health insurance with Option 1. The Manager also is recommending that the <br /> Board authorize a temporary increase in the County subsidy for dependent coverage for 2003 <br /> to mitigate the employee impact of the health cost increase. <br /> Current Health Plans <br /> Currently Orange County offers three health insurance plans: Blue Cross Personal Care Plan <br /> (PCP), Blue Cross Preferred Provider Plan (PPO) and CIGNA. Both Blue Cross plans are <br /> offered through the NCACC Trust. Blue Cross PCP and CIGNA are health maintenance <br /> organizations (HMOs). The Blue Cross PPO is a type of traditional health insurance plan. The <br /> chart below shows the number of employees enrolled in each plan. <br /> Health Plan Employees Enrolled <br /> Blue Cross Personal Care Plan 497 <br /> Blue Cross Preferred Provider Plan 41 <br /> CIGNA 136 <br />