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6 <br />plan and each of the options. Advantages and disadvantages of the renewal and options are <br />shown on Attachment 9. <br />FINANCIAL IMPACT: <br />During this Work Session, the Human Resources Director will share fiscal information related to <br />health insurance options. The 2009 Benefit Recommendations all meet the County budget for <br />FY 2008-09. <br />Term Life: There is no budget impact. Premiums will remain the same for 2009. <br />Dental: There is no budget impact in the FY 2008-09 approved budget. Premiums will remain <br />the same for 2009. The proposed changes will reduce the balance in the dental account over <br />time. Projections for the use of funds for the next five years are provided in Attachment 2. This <br />is a conservative projection, with assumptions of increases in both premiums and claims. No <br />administrative increases are anticipated at this time. <br />Flexible Spending Account: This is within the FY 2008-09 approved budget. There is a <br />potential for tax savings, based on the amount of contributions employees make of a minimum <br />7.65 cents savings for both the County and the employee for each $1.00 contributed. Losses <br />are possible when an employee claims and receives funds prior to making the full contribution, <br />and then leaves County employment prior to fulfilling their obligation to the Medical Spending <br />Account for the plan year. The potential loss will be greater, depending on the number of <br />employees who enroll overall. <br />Employee Assistance Program: This is within the FY 08-09 approved budget. The contract <br />renewal is at a rate of $1.61 per employee per month, which includes a 7 cents per month <br />increase from the previous plan year. The estimated annual cost for the EAP is $15,456, <br />including a projected increase of $675 a year ($337.50 for FY 2008-09) for the added services. <br />The recommended changes are within the amount allocated in the FY 08-09 budget. <br />Health: Within the FY 2008-09 approved budget. With the Commissioners' input, the Manager <br />will be able to determine the fiscal impact of the recommended option for the FY 2008-09 <br />Budget. <br />Options County Cost (Calendar Year) <br />Renewal with No Changes $6,877,746 <br />Option I Buy Up Plan $6,604,372 <br />Option 2 One Plan $6,776,097 <br />RECOMMENDATION(S): <br />The Manager recommends that the Board of Commissioners receive an update on the status of <br />The Archer Company pay study and current and future employee benefits and provide <br />feedback on potential benefit recommendations for the January 1, 2009 plan year. A final <br />recommendation will be presented to the Commissioners on October 7. <br />