Orange County NC Website
_ 4 <br /> each employee. These would be funds an employee could receive as reimbursement for <br /> medical expenses such as the cost of dependent care premiums, prescription drug co-pays or a- <br /> deductible (if the County plan provided for a health insurance deductible). <br /> Implementation Meetings and Schedule <br /> Given the changes in the Blue Cross PCP and PPO plans under any of the renewal options, <br /> Personnel plans to include meetings with all employees on health insurance as part of open <br /> enrollment. To meet the payroll and enrollment deadlines, these meetings are planned for the <br /> first week in November. <br /> Recommendation <br /> After assessing the options, the Manager recommends the Board adopt Option 1 — Renewal <br /> through the NCACC Trust with Blue Care Plan 1 and Blue Options Plan 1 and continuing to <br /> offer CIGNA. The Manager also recommends the Board temporarily increase the subsidy for <br /> dependent health insurance for 2003 to 52 percent based on Blue Care Plan 1 to mitigate the <br /> cost impact on employees. This recommendation most fully mitigates the cost impact on <br /> employees of the health insurance cost increase. Attachment 6 shows the draft monthly health <br /> insurance rates with Option 1 and recommended dependent subsidy. <br /> FINANCIAL IMPACT: The County budget provides funding for up to an 18 percent health <br /> insurance increase effective January 1, 2003. The estimated additional general fund cost over <br /> the amount budgeted to renew with Option 1 is about $85,000. The additional cost to increase <br /> the health insurance dependent subsidy to 52 percent is about $99,000. Of the total additional <br /> amount required ($184,000), $145,000 can be funded using the Employee Pay and Benefits <br /> Contingency Fund that the Board established for 2002-03. As to the remaining cost of$39,000, <br /> staff will identify the specific funding source for this as the Board makes decisions regarding the <br /> use of sales tax revenue over the next few months. <br /> RECOMMENDATION(S): The Manager recommends that the Board: <br /> 1. Approve renewal of the County health insurance plans with the benefits outlined for Blue <br /> Care Plan 1 and Blue Options Plan 1. <br /> 2. Authorize the Chair to sign the implementing Interlocal Agreement with the NCACC Health <br /> Insurance Trust, subject to the review of staff and the County Attorney. <br /> 3. Approve the Attachment 6 health insurance rates for coverage effective January 1, 2003, <br /> including the temporary increase in County contribution for dependent health insurance. <br /> 4. Appropriate $145,400 from the Employee Pay and Benefits Contingency Fund to fund the <br /> cost of health insurance and increasing the dependent subsidy for 2002-03. <br />