Agenda - 10-21-2002 - 4 - Laserfiche WebLink

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2 Renewal Options The renewal quotes provide for three possible options: • Option 1 - Renewal of current plans with changes to the Blue-Cross PCP (Blue Care Plan 1) and Preferred Provider Plan (Blue Options Plan 1) as noted under Option 1 below and continuation of CIGNA. - • Option 2 — Renewal of the two Blue Cross Plans with an alternative benefits package (Blue Care Plan 2 and Blue Options Plan 2) and continuation of CIGNA. • Option 3 —The same as Option 2 (that is, renewal of the two Blue Cross Plans with an alternative benefits package — Blue Care Plan 2 and Blue Options Plan 2) with the elimination of CIGNA. Under this option, the NCACC Trust becomes the County's sole health insurance provider. Option 1 — Renewal of Current Health Plans (Blue Care Plan 1 and Blue Options Plan 1) The NCACC Health Insurance Trust renewal rate quotation for the current health plans provides for a 25 percent increase. The NCACC Trust advises that the increase arises from the trend in health insurance costs as well as the County's higher utilization experience over the past six months. The CIGNA renewal rate quotation provides for a 12.55 percent increase. With the renewal, the NCACC Trust and CIGNA also have advised of several changes to the plans. These are summarized in Attachment 1 and described in more detail in Attachments 2 and 3. A key change is that the NCACC Trust renewal provides for the County to change from the Blue Cross Personal Care Plan (PCP) to the new "Blue Care" Plan effective January 1, 2003. The Trust and Blue Cross advise that they are eliminating PCP and replacing it with the Blue Care Plan. Option 2 — Renewal With Alternative Benefits (Blue Care Plan 2 and Blue Options Plan 2) In its renewal proposal, the NCACC Trust has provided a quote for an alternative Blue Care Plan (Blue Care Plan 2) and Blue Options Plan (Blue Options Plan 2) at a renewal rate of a 16 percent increase rather than a 25 percent increase. These alternative benefits are summarized in Attachment 1 and described in more detail in Attachments 2 and 3. Option 3 — Renewal with Alternative Benefits (Blue Care Plan 2 and Blue Options Plan 2) with Blue Cross as Sole Provider The County requested that the NCACC Trust provide a sole provider quote for the Blue Cross plans through the Trust. If the County enters into a sole provider contract, this would mean discontinuing the current CIGNA plan effective January 1, 2003 and offering only the Blue Cross plans. For the sole provider option, the Trust has not offered any reduced rate for this if the County renews with the Blue Care Plan 1 benefits. If the County renews with the alternative benefits (Blue Care Plan 2 and Blue Options Plan 2),