HomeMy WebLinkAbout2012-440 HR - ABC Board MOU Health Insurance Benefits for Employees of the OC Alcoholic Beverage Control Board511- /,&
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MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding ( "MOU ") entered into this the 4 day of
2012 between Orange County, a local political subdivision of the State of North Carolina ( "County "), and the
Alcohol Beverage Control Board of Orange County, a public corporate North Carolina entity ( "ABC "),
referred to collectively as the Parties, to authorize access of ABC's employees to the Orange County
Employee Benefit Plans.
Whereas, ABC is a public corporate entity located in Orange County and authorized by statute to
assist the State of North Carolina in regulating intoxicating beverages; and
Whereas, on April 17, 2012 the Chair of the ABC caused a letter to be sent to Orange County
Commissioner Earl McKee requesting that County explore the option of adding ABC's 30 employees and six
retirees to County's Employee Benefit Plans as a subgroup, and
Whereas, at the May 1, 2012 Orange County Board of Commissioners' regular meeting the Orange
County Board of Commissioners approved ABC participation in County's Employee Benefit Plans and
directed Orange County staff to develop this MOU to outline the terms of such ABC participation; and
Whereas, the County and ABC desire to define the conditions under which ABC will have access to
the County's Employee Benefit Plans.
NOW THEREFORE, the County and ABC agree to the following:
1. The County authorizes access to the County's Employee Benefit Plans for ABC's participating
employees and retirees, and this MOU shall be effective, July 1, 2012.
2. ABC will pay the full cost of the benefit plan for ABC's participating employees and retirees and
no costs will be subsidized by Orange County.
3. County will retain access to the United Healthcare database for ABC employees and retirees.
ABC will not have access to Orange County employee information. Orange County will enter
enrollments, changes to coverage, and terminations of coverage on behalf of ABC.
4. ABC shall be responsible for paying invoiced costs directly to United Healthcare and for
administering COBRA eligible members.
5. ABC shall direct its employees and retirees to participate in wellness activities such as health
assessments and biometric screenings to improve health and reduce claims utilization.
6. ABC will continue to have access to the County's Employee Benefit Plans so long as there are no
adverse effects on the County's premiums or Benefits Plans.
7. Should County convert from fully insured to self- insured ABC shall be responsible for the full
costs of its claims and its employees' and retirees' claims.
8. The term of this MOU shall be two years from the effective date.
9. This MOU may be extended for additional terms of one year upon mutual written agreement of
the Parties.
10. The County will review the effects of ABC's participation in the County's Employee Benefit Plans
on an annual basis and may terminate this MOU upon one year's written notice if such review
demonstrates ABC's participation in the County's Employee Benefit Plans adversely impacts the
County's overall costs of coverage.
11. Either party may otherwise terminate this MOU upon one year's written notice.
This MOU is effective the day and date first above recorded.
FOR THE COUNTY:
Frank W. Clift n, Jr., County Manager
FOR ABC:
I
Tony Du ois, General Manager