Agenda - 09-09-2008- 4 - Laserfiche WebLink

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5 This option would result in an increase for the County of approximately $195,660 for FY 08-09. The increase in premiums for employees would be a significantly lower amount than renewing the plan with no change. Advantages and disadvantages of the renewal and options are shown on Attachment 5. A more detailed breakdown of the current plan and each of the options are also included in Attachment 6. The County and employee premium rates continue the current 52.0% dependent subsidy. When applicable, this is based on the lower cost Plan. Continuation of the subsidy at this level maintains a "family friendly" policy offered by the County that is highly valued by the 45% of employees with dependent coverage, however, it does present an equity issue for employees without dependent coverage. This policy provides health insurance coverage for dependents (spouse, domestic partner, children, or entire family) more affordable, and thus, accessible. It particularly benefits lower salaried employees for whom dependent health insurance coverage is a significant cost. An added component of the health insurance for all options is Health Advisor, a CIGNA program which provides each healthy and at-risk employee with a health coach who can assist an employee in improving his or her health. This opportunity is incorporated into each option. Additionally, Orange County has partnered more closely with NCACC to resurrect the Wellness Committee and wellness activities. Because healthier employees have a higher quality of life, are more productive, and require less health care, wellness activities will continue to be an important benefit for County employees and retirees. FINANCIAL IMPACT: During this Work Session, the Human Resources Director plans to share fiscal information related to health insurance options. The 2009 Benefit Recommendations all meet the County budget for FY 08-09. Term Life: There is no budget impact. Premiums will remain the same for 2009. Dental: There is no budget impact in the FY 08-09 approved budget. Premiums will remain the same for 2009. The proposed changes will reduce the balance in the dental account over time. Projections for the use of funds for the next five years are provided in Attachment 2. This is a conservative projection, with assumptions of increases in both premiums and claims. No administrative increases are anticipated at this time. Flexible Spending Account: This is within the FY 08-09 approved budget. There is a potential for tax savings, based on the amount of contributions employees make of a minimum 7.65 cents savings for both the County and the employee for each $1.00 contributed). Losses are possible when an employee claims and receives funds prior to making the full contribution, and then leaves County employment prior to fulfilling their obligation to the Medical Spending Account for the plan year ($30.60/per employee contributing at the maximum). Employee Assistance Pro rq am: This is within the FY 08-09 approved budget. The contract renewal is at a rate of $1.61 per employee per month, which includes a 7 cents per month increase from the previous plan year. The estimated annual cost for the EAP is $15,456,