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

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Employee Assistance Program (EAP) Magellan Behavioral Health provides the County's EAP for County employees and their dependents. This benefit includes a number of services such as confidential assessment and counseling services, 24/7 emergency services, and legal consultation. .Several changes that would greatly enhance the EAP can be made with an increase in cost of 7 cents per month per employee which would bring the overall cost to $1.61 per employee per month. The 2009 recommendation includes increasing the number of counseling sessions from three to five, the removal of the LifeManagement Resource and Referral Service, and the addition of financial consultation services to the legal consultation services. The Resource and Referral Service provides members with referrals for dependent or senior care, and is duplicated by County departments. Increasing the number of counseling sessions will allow employees more treatment and a greater continuity of care in dealing with personal, emotional and financial issues. The EAP is a complement to services provided through the County Health Plan at no cost to employees. Health Currently the County offers two fully insured health insurance plans. Both health plans are contracted through the NCACC Health Insurance Trust and administered by CIGNA. One plan is a Health Maintenance Organization (HMO) that requires participants to use a vendor network of physicians and facilities. The second plan is a Preferred Provider Organization (PPO) that allows both in and out of network services. When using out-of-network services, the employee pays a higher portion of the cost. Both plans offer an in-network wellness benefit at no cost, which includes physicals, health screenings and immunizations. The current number of employees enrolled in each plan, past rate changes, and past plan changes to the health insurance are shown on Attachment 5. Staff has considered several options for the 2009 plan year that will stay within the 8% increase budgeted for FY 2008-09. The health care trend (percentage increase in claims costs that actuaries expect to see in the next 12-month period) would require a premium increase of 10- 12% over the 2008 rates. Because Orange County's actual medical experience in health care claims in FY 2007-08 was under this 10-12% trend, staff was able to negotiate the renewal rate to a lower rate than the annual trend. Considerations used in preparing the renewal rates, including claims information, are provided on Attachment 6. The County currently pays the entire monthly premium for employee and retiree only coverage for both the HMO and PPO plans. The County also subsidizes the premium cost for the employee's dependent coverage at 52%, based on the lower priced plan (which has been the HMO plan for the past several years). This practice provides affordable and thus, accessible health insurance coverage for dependents (spouse, domestic partner, children, or entire family) to employees, particularly lower salaried employees for whom dependent health insurance coverage is a significant cost. Continuation of the subsidy at this level maintains a "family friendly" feature that is highly valued by the 45% of employees with dependent coverage, however, it does present an equity issue for employees without dependent coverage. By paying the dependent subsidy, total compensation for employees with dependents is greater than for those without dependents. 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. Additionally, Orange County has partnered more closely with NCACC to enhance the Wellness Committee and wellness activities. Because