Agenda - 10-07-2008 - 6b - Laserfiche WebLink

Browse Search

Attachment 6 ~~ ADVANTAGES RENEWAL OF CURRENT PLAN DISADVANTAGES 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 remiurns than in ast. Addresses inequity between the cost of two plans (employees pay for the increased benefits rovided by the HMO) May shift employees with dependents to the PPO plan because cost of dependent coverage in PPO is less than HMO. OPTION 1 "BUY UP PLAN" Addresses inequity between the cost of two Requires employees to choose whether or not plans (employees pay for the increased to pay far employee only coverage benefits rovided by the HMO) Allows choice of plan best meeting employee Affects 877 HMO employees who must all needs pay for the HMO or change to the PPO at no cost. Controls claims by cost sharing (paying fora The employees' benefits are reduced in the no- premium or co-insurance) because more cost option. attention is aid to out of ocket costs. Saves approximately $102,000-$118,000 for Increases the costs for HMO dependents more the County compared to the renewal than the renewal rate. (annualized). OPTION 2 "ONE FLAN" Only one rate for dependent coverage(s). Affects 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 $54,000 more than the the lowest of all options. Renewal (annualized). 877 HMO members would gain access to out of network roviders. Cost of increases to employees is lower than renewal rate.