Agenda - 09-22-2008 - 3 - Laserfiche WebLink

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Attachment 9 ADVANTAGES ~.:J DISADVANTAGES RENEWAL OF CURRENT PLAN No change to plan design. Continues to increase the cost to the County and to the 45% of employees with dependent covera e. No cost for employees with employee only Requires HMO participants with dependent covera e. covera e to a hi her remiums than in ast. Begins to address the difference in value/cost Does not provide employees with plans that of the separate plans. represent a significant difference in cost and benefit level. May shift employees with dependents to the PPO plan because cost of dependent coverage in PPO is less than HMO. OPTION I "BUY UP PLAN" Addresses inequity between the cost of two Affects 877 HMO employees who must all plans pay for the HMO or change to the PPO at no cost. Allows choice of plan best meeting employee The County saves but the employees' benefits needs are reduced in the no-cost o tion. Controls claims by cost sharing (paying fora Increases the costs for HMO dependents more premium or co-insurance) because more than the renewal rate. attention is aid to out of ocket costs. OPTION 2 "ONE PLAN" The cost of dependent coverage is the same for Affects all employees. all employees. PPO would have decrease in co-insurance 877 employees/retirees in HMO would have a from $1,000 to $500. 5% co-insurance to a maximum of $500 vs. current $0 co-insurance. This will affect members with medical claims other than office visits/prescriptions. (Projections indicate 10- 14% of members would be affected.) Cost increase to employees with dependents is Cost to County is slightly higher than Option the lowest of all options. 1. 877 HMO members would gain access to out of network roviders. Cost to Count is lower than renewal rate.