Agenda - 10-03-2000-8g - Laserfiche WebLink

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The NCACC Trust advises the 15.8 percent rate increase results from the increasing trend in health insurance costs generally and the County's awn claims experience. This compares to increases in past years as follows: Year NCACC Trust CIGNA 2000 4.5% 5%-14.8%* 1999 10% (PCP) 24% (PPO) 13% 1998 0.3% 2%-3%* 1997 5.8% -6.0% 1996 -15.5% 2.4% *Depending on coverage type. County Contribution for Employee Health Insurance Attached are the draft monthly health insurance rates for 2001. This shows the Total Cost, County Cost and Employee Cost for each coverage type. In the past the County has established its contribution for employee health insurance as the: • Full cost for the individual employee coverage • 40 percent of the cost of dependent coverage based on the Blue Cross Personal Care plan rate. The County then has applied the dollar amount of the dependent contribution calculated on the Blue Cross person Care Plan rate to the Blue Cross Preferred Provider and CIGNA plan rates. The attached rates have been calculated in this same manner. Budget for Health Insurance The cost of the proposed County contribution far individual coverage and dependent coverage is within the amount budgeted for health insurance for 2000-01. The Gounty budget for fiscal year 2000-01 provides funding for up to a 20 percent health insurance increase effective January 1, 2001. In dollars, this is about $2fi0,000 for the fiscal year. The estimated cost of the actual renewal rates fog the fiscal year is about $190,000 or about $70,000 less than projected. Sole Provider Option The County also requested that the NCACC Trust provide a "sole provide' 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, 2001 and offering only the Blue Crass plans. Far the sole provider option, the NCACC Trust quoted rates that represent about a 12.3 percent increase over the current rates as compared to the 15.8 percent increase if the County retains the CIGNA plan as well as the Trust. It is estimated this would yield a savings of about $40,000 in fiscal year 2000-01 over the renewal rate quoted and about $70,000 on an annual basis.