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Home My WebLink AboutAgenda - 09-01-1998 - 9dOrange County Boartl of Commiasionere Ac0on Agenda Item Abetraet Meeting Oate: September 1, 1988 Acdon Agentl a J Ibm No. ~_ BubJect Employes Heahh lnsunnee /or 1999 OeparhnenL Personnel Public Haaring: Yes_NO x Butlgel Amentlment Neatletl: Ves No x AtlachmengsJ: Informatlon ContacF. Elaine Holmes, Personnel Director Ez[ension 2550 Telephone Number: HilHborough ]32A181 Chapel Hill 889<501 Durham 688-7331 McDana 22]-2031 Purpwa: To wnsitler renewal of employee health insurance plans thrwgh the North Carolina Auociation of County Commiuionare (NCACC) Heagh Insurance Trust antl HeaBhscurce egedive January 1,1999. Baekgrountl: Summary In summary, Me County hoe reeelvetl renewal nb quotefbw for employes hesDh insunrlw eflectlva Janwry 1,1988. The renewal rates quoted ere wlihln the amount Dudgated for heslih Iwunnce for 1889. Additlonal irdomuMOn Is Provitled below. Current Hultlr Plans Cuwntly Orange County offers three heakh Insurance plans: o Blue Crou Prefertetl Provitler Plan o Blue Cress Personal Care Plan o HealMaource of North Carolina, Inc. BoM Blw Cross plans are conbactetl Mrough Me NCACC Health Insurance Trust The County entered into the Intetlocal Agreement with the Trust elfec5ve January 1, 1998. z The Blue Cross Preferred Provider Plan is a ype of traditional heakh insurence plan. TM1e Blue Cross Personal Care Plan and Healthsource are health maintenance organizations (HMOs). 1888 Rates The NCACC Health Insurance Tmat and HealMSOUrce have provketl renewal reh quotations effective January 1, 1999 for the currern health plans as follows: Plan Rate Increase Blue Cross Prehrretl Provider Plan 24.0 Blue Cross Personal Care Plan 10.7 % Healthsource Plan 13.0 Two Blue Croav Raba Venue Single Rob In the pest, the NCACC Trust has quoted a single or so called July blended rate for the Blue Crosa plane. This means the premiums for the Blue Cross Preferred Provider Plan and the Blue Crosa Personal Care Plan are the same. For 1899, the Trust has not quoted a fuly bleMed rate because of the Couny's signi9candy hgher claims experience for the Preferted Provider Plan. Instead of the sirgh Blue Crosa reh, the Trust hea quoted Nro partially bonded retes for the plans. This means Mat each of the lwa plena has a tliRarent rah. The County hoc retaiired the Blue Crosa Prefertetl Provider Plan beceuse k provides the option for the employee to choose out of network providers. In terms of retiree heats Insurence, Me Preterted Provider Plan abc provides the option for out of area heakh insurence ceverege in Me case where Me retiree is not lacatetl in an area cevered by the HMO plane. County ConWbutlonfor Employee HwIM Insurance In the past the County' has esbDliahed its mntdDUtion for employee heakh insurence as Me: o full ces[for individual employee ceverege and 0 40 percent of the cost of dependent coverege based on [he Blue Crosa rate. The County then has applied the dotter amount of the dependent contribution celculatetl based on [he Blue Crosa rete to the Healthsource plan. Budget for Fineal Vear 1898-99 The County butlget for Tscal year 1998-99 provitles footling for up to a 20 percent health inaurnce increase effective January 1, 1999. In tlollers, [his is about $210,000 for the prolegetl increase. Based on tlla quoted renewal robe for 1899, Na cost of Me County eontributlon for individual coveroge antl dependant coverage are within the amount budgsbd for healtll insurance for 1998-89. The budget savings yieltled by the equal renewal retes quctatl over the amount budgetetl ranges from about $80,000 to $100,000 in fiacel year 1998-99. Sole Provider Optlon The County also requested the NCACC Tmst provitle a "sole provitlel' quote for the Blue Cross Plans Mrough Ne Tmat. If Me County enters into a sale Provitler mntreq, this wouM mean tliscoMinuing the curtaM Hea9hsouroe plan aRecBVS January 1, 1999 antl offering Doty the Blue Cross Plane. Employees enrolled in Heatthsource wouM have to change to eiNer the Blue Cross Preferretl Provitler Plan or Ne Blue Cmsa Personal Care Plan effegive January 1. For Ne sole provider aptron, Me NCACC Trust quoted retes which repreceM no change in the renewal rete quoted br the Prefenetl Provitler Plen antl about a five percent decrease (a 8J percent increase rather than a 10] percent increase) for the Personal Care Plen. It is estimatetl thin wouM yield a savings of about $40,000 in 1998-99 over Me regular renewal quoted or about $80,000 on en annual basis. In the peat, the County has conaitleretl the sole Provitler option, but hea tlecitletl not to pursue it because of the strong employee interest in maintaining choice in healM insurance plans and Eeing able to access Duke physigana antl hospdal through an HMO plan, as is offeretl by Hea9hscurce. Plan Enrollment For iMOrmalion, the current enrollment in the haehh insurance plans and the waiver option is as follows: 4 Plan Emolovees Enrolletl Blue Gross Preferretl Provider Plan 61 Blue Cross Personal Care Plan 343 Healihsource Plan 186 Health Insurance Waiver Option 26 Staff Direetlon 4Md\ this repoR, 5dH is seeking the direction of the Boats as to whether to accept the ewrent health inaurence renewals as quotetl by the NCACC Health Insurance Trust antl Headhsource. If the Board wishes to accept renewal of Me current health insurance plans, stall will reNm at the OCOber6 Boats meeting wkh specific aces (County mMdbulion and employee cast) for Board consideration and action. Recommendatlon: The Manager rewmmends the Board approve ranewel of employee health insurance wiHM the NCACC Health Insurance Trust and Headhaource aM direct staitto relum wdh specific rates (COUnN wnbibution and employee cast) br the BoaM's consideration. (N \EnmllmelEnrvllmeUbfba98.0001 Augmt04, 1990