HomeMy WebLinkAboutAgenda - 04-06-2010 - 4m 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 0, 2010
Action Agenda
Item No. 4- _ty]
SUBJECT: Health care Assessment Update
DEPARTMENT: Human Resources PUBLIC HEARING: (YIN) No
ATTACHMENT(S): INFORMATION CONTACT:
Michael McGinnis, HR Director, 245-2552
Diane Shepherd, Benefits Manager, 245-2558
Annette Moore, Staff Attorney,- 245-2317
PURPOSE: To update the Board of Commissioners on the status of current employee Health
Assessment and to recommend an amendment to the 2010 health insurance renewal.
BACKGROUND: Currently, the County offers two fully insured health insurance plans
contracted through the North Carolina Association,of County Commissioners (NCACC) Health
Insurance Trust and administered by CIGNA. On September 15, 2009, Commissioners
approved the 2010 health insurance renewal with the County paying the full cost of employee
coverage through March 2010. Employees were to be charged a $10.00 monthly premium
beginning April 2010; however, employees who completed a confidential Health Assessment by
March 8, 2010 would be exempted from paying the premium.
The Health Assessment was developed by the University of Michigan as the result of over 25
years of development and data analysis. It included questions related to an individual's health
(weight, blood pressure, cholesterol) and behavior (smoking, drinking, exercise, and driving
habits). Other questions addressed specific health conditions, such as arthritis, cancer,
disease, stroke and other conditions.
The intent of the County's program was to: (1) help individuals learn about their own health
issues and how to improve their health; and (2) promote better health practices among
employees that would help reduce the medical liability expense that the County now bears and
will bear in the future. The goal was that no employee would be charged the $10.00 premium.
Staff undertook initiatives to promote the Health Assessment and achieve this g oal. As of
March 8, 2010, 807 individuals, or more than 91% of employees and retirees, completed the
Health Assessment. 744 employees (91.4%) and 123 retirees (93.2%) completed the
assessment, leaving only 72 employees and 9 retirees who would not be exempt from paying
the premium.
At time of renewal, all options were discussed with NCACC and CIGNA. NCACC and CIGNA
representatives encouraged the approved recommendation. Between late October 2009 and
March 2010, additional discussions regarding the Health Assessment occurred. Based on the
information presented; staff believes the County can better meet its goals by not imposing a
$1.0.00 monthly premium.
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Staff proposes that the $10.00 premium be suspended for all employees and retirees, including
the 81 who did not complete it before March 8, 2010. This will make completion of the Health
Assessment completely voluntary.
FINANCIAL IMPACT: Because staff anticipated most employees would choose to complete
the Health Assessment, no revenues were included in FY 2009-10 budget based on the $10.00
monthly premium. There is no financial impact with approval of the $10.00 premium
suspension.
RECOMMENDATION(S): The Manager recommends that the Board accept this report and
amend the approval of the 2010 Health Insurance Renewal to continue providing employees
with health insurance at the same rates as in January 2010 and not impose a $10.00 monthly
premium for employees who did not complete a Health Assessment.