HomeMy WebLinkAboutAgenda - 10-06-1998 - 8cOrange County
Board of Commissioners
Action Agenda Item Abstract
Meeting Date: October 6, 1998
Subject: Employee Health Insurance Rates for 1999
Department: Personnel
Attachment(s):
Draft Monthly Health Insurance Rates,
Including Total, County and Employee Premiums
Action Agenda
Item No. S— C.
Public Hearing: Yes No X
Budget Amendment
Needed: Yes No X
Information Contact:
Elaine Holmes, Personnel Director
Extension 2550
Telephone Number:
Hillsborough 732 -8181
Chapel Hill 968 -4501
Durham 688 -7331
Mebane 227 -2031
Purpose: To consider approval of the 1999 employee health insurance rates.
Background: In the September 1, 1998 meeting, the Board:
❑ Approved renewal of the current employee health insurance plans with the North
Carolina Association of County Commissioners ( NCACC) Health Insurance Trust and
Healthsource effective January 1, 1999 and
❑ Directed staff to return with specific rates (County contribution and employee cost) for
the Board's consideration.
Attached are the draft monthly health insurance rates for 1999. This shows the Total
Premiums, County Contribution and Employee Premium.
1999 Rates Changes
As reported in September, the NCACC Health Insurance Trust and Healthsource renewal
rate quotations effective January 1, 1999 reflect the following rate increases:
Plan
Rate
Increase
Employees
Enrolled
Blue Cross Preferred Provider
24.0%
61
Blue Cross Personal Care
10.7%
343
Healthsource
13.0%
166
i
t_
2
Budget for Fiscal Year 1998 -99
Also as reported in September, the County budget for fiscal year 1998 -99 provides funding
for up to a 20 percent health insurance increase effective January 1, 1999. In dollars, this
is about $210,000 for the projected increase.
Based on the quoted renewal rates for 1999, the cost of the County contribution for
individual coverage and dependent coverage are within the amount budgeted for
health insurance for 1998 -99. The budget savings yielded by the actual renewal rates
quoted over the amount budgeted is about $100,000 in 1998 -99.
Two Blue Cross Rates Versus Single Rate
In the past, the NCACC Trust has quoted a single or so called fully blended rate for the
Blue Cross plans. This means the premiums for the Blue Cross Preferred Provider Plan
and the Blue Cross Personal Care Plan have been the same. For 1999, the Trust has not
quoted a fully blended rate because of the County's significantly higher claims experience
for the Preferred Provider Plan. Instead of the single Blue Cross rate, the Trust has quoted
two partially blended rates for the plans. This means that each of the two plans has a
different rate.
County Contribution and Employee Cost
In the past the County has established its contribution for employee health insurance as the
full cost for individual employee coverage and 40 percent of the cost of dependent
coverage based on the Blue Cross rate. The County then has applied the same dollar
amount of the dependent contribution as calculated based on the Blue Cross rate to the
Healthsource plan.
In calculating the County's contribution and employee cost for the 1999 renewal, the same
procedure has been followed. However, since two Blue Cross rates have been quoted, the
County has based its calculation of the dependent subsidy on the rate for the Blue Cross
Personal Care Plan.
Recommendation: The Manager recommends the Board approve the attached employee
health insurance rates for 1999.
(KAHea1th\Agen9899. Doc)
i
ATTACHMENT
1999 Monthly Health Insurance Rates
Blue Cross Personal Care Plan
Employee Only
y
Paid by the
Paid by the
8}:
Total Cost
$ -
Types of Coverage
County
Employee
New
F ld '
New
ON
New
151.35
=237 Ofl
369.277
,
262.51
!
106.76
Blue Cross Personal Care Plan
Employee Only
y
$214.44
191.3372
8}:
$ 191.33
$ -
Employee /Child(ren)
413.86
7,1)
Employee /Child(ren)
151.35
=237 Ofl
369.277
fl
262.51
!
106.76
Employee /Spouse
�T
452.454
5
276.28
176.17
409.00
Employee /Spouse
M
'e 132.72
403.71
249 52v
276.28
�,K
127.43
{}
344.39
298.91
582.0011(=
-1
344.39
237.61
Employee/Family
573.99
:311.04::
344.39
229.60
Blue Cross Preferred Provider Plan
Employee Only
$214.44
$;72'y:°
$ 214.44
$ -
Employee /Child(ren)
413.86
7,1)
262.51
151.35
=237 Ofl
262.51
121.49
Employee /Spouse
�T
452.454
5
276.28
176.17
409.00
t - ;:249.52:
M
'e 132.72
Employee/Family
643.3011
{}
344.39
298.91
Healthsource Plan
Employee Only
$182.00
$.161:00 ;
$ 182.00
Employee /Child(ren)
384.00
=237 Ofl
262.51
121.49
�T
rt
Employee /Spouse
409.00
t - ;:249.52:
276.28
'e 132.72
Employee/Family
582.0011(=
344.39
237.61
(K:\HealtMB en -rate. xls)
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