The URL can be used to link to this page

Home My WebLink AboutAgenda - 03-16-2021; 6-a - Recommendations for Employee Health Insurance and Other Benefits 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 16, 2021 Action Agenda Item No. 6-a SUBJECT: Recommendations for Employee Health Insurance and Other Benefits DEPARTMENT: Human Resources ATTACHMENT(S): INFORMATION CONTACT: 1. Breakdown of the Total Health Brenda Bartholomew, Human Resources Insurance Budget by Enrollment Director, (919) 245-2552 PURPOSE: To approve the Manager's recommendations regarding employee health and dental insurance and other employee benefits effective July 1, 2021 through June 30, 2022. The Manager is recommending no increase in appropriations for the FY2021/2022 Health and Dental Budget and is also recommending that the County continues to participate as a member of the North Carolina Health Insurance Pool (NCHIP). BACKGROUND: The County provides employees with a comprehensive benefits plan, including health, dental and life insurance, an employee assistance program, flexible compensation plan and paid leave for permanent employees. Additionally, the County contributes to the Local Governmental Employee's Retirement System and a supplemental retirement plan. The County's health plan has been self-insured since 2014. On February 6, 2018, the Board of County Commissioners (Action Agenda Item 4-b) approved joining NCHIP and in FY2018/2019 the County became an inaugural member of the North Carolina Health Insurance Plan (NCHIP) as permissible under Article 23 of Chapter 58 of the North Carolina General Statutes (the "Local Government Risk Pool Act"). North Carolina Law allows local governments to enter into contracts to establish health insurance pools as a means of providing health insurance to employees and its membership offers economies of scale and risk pooling to members as a means in providing financial stability in the administration of health insurance programs. NCHIP operates with a Board of Directors with members having a vote and say in how NCHIP operates. Each local government member has representation on NCHIP's Board. The Executive Board is responsible for reviewing financials, evaluating vendor relationships, evaluating new members/partners, discussing trends and innovative strategies and planning stability in funding health insurance costs. Membership allows counties, cities and towns across North Carolina to work collaboratively in creating a stable, predictable, and sustainable health care program. NCHIP currently contracts with Blue Cross Blue Shield of North Carolina (BCBSNC) and Prime Therapeutics, a division of BCBSNC, to administer medical and prescription claims for its members. 2 In FY2019/2020 and FY2020/2021, the Board of County Commissions approved the County's continued participation in the North Carolina Health Insurance Pool with no increase to the Health Insurance Fund. A total health insurance budget of$13.3 million (including health savings account contributions) is based on current enrollments of employees and pre-65 retirees and the budget and its respective premium equivalent rates for health insurance for employees and pre-65 retirees have been maintained. The County has continued to maintain financial stability since the onset of NCHIP membership and subsequently there has been no increase to employees or to the County's Health Insurance budget. Further, the County has not increased insurance premium equivalents for employees since 2015; the County incurred the total funding responsibility of any premium equivalent increase. Health Insurance The following table summarizes the breakdown of the County and employee contribution relationship for both health insurance plans based on current enrollment for employees and pre- 65 retirees. Also, demonstrated on the table is the County contribution for $1,416 for health savings accounts for employees and pre-65 retirees enrolled in the High Deductible Plan. Attachment 1 shows more detail of this summary. NCHIP RATES ORANGE COUNTY(SUMMARY) July 1,2021-June 30,2022 Enrollment Enrollment Enrollment TOTAL COST EMPLOYEE EMPLOYER PPO HDP Total CONTRIBUTION CONTRIBUTION ACTIVE 721 197 918 $11,181,542 $1,206,319 $9,975,223 PRE-65 RETIREES 105 14 119 $1,400,467 $128,232 $1,272,235 TOTAL 1037 $12,582,009 $1,334,551 $11,247,458 Health Savings Account $1,416 ACTIVE $278,952 197 $278,952 $0 $278,952 PRE-65 RETIREES $19,824 14 $19,824 $0 $19,824 TOTAL $298,776 $0 $298,776 ACTIVE $11,460,494 $1,206,319 $10,254,175 PRE-65 RETIREES $1,420,291 $128,232 $1,292,059 TOTAL ENROLLMENT AND HEALTH SAVINGS ACCOUNT $12,880,785 $1,334,551 $11,546,234 3 The Monthly/Semi-Monthly rates are listed as follows: NCHIP ORANGE COUNTY July 1, 2021-June30,2022 Current PPO Plan Premium Monthly County Monthly Employee Semi-Monthly Semi Monthly Equivalent Cost Share Cost Share County Cost Share Employee Cost Share Employee Only $806.59 $806.59 $0.00 $403.30 $0.00 Employee+Spouse $1,631.71 $1,222.51 $409.20 $611.26 $204.60 Employee+Child(ren) $1,267.24 $1,037.34 $229.90 $518.67 $114.95 Employee+Family $2,293.71 $1,558.87 $734.84 $779.44 $367.42 Current PPO Plan Premium Monthly County Monthly Employee Semi-Monthly Semi Monthly Equivalent Cost Share Cost Share County Cost Share Employee Cost Share Employee Only $680.52 $680.52 $0.00 $340.26 $0.00 Employee+Spouse $1,369.50 $1,109.29 $260.21 $554.65 $130.11 Employee+Child(ren) $1,065.16 $916.04 $149.12 $458.02 $74.56 Employee+Family $1,922.26 $1,441.70 $480.56 $720.85 $240.28 Dental and Vision Insurance Delta Dental is the County's Dental provider and Community Eye Care provides the County's vision plan. The County will continue to provide coverage with Delta Dental and Community Eye Care. Vision premiums are paid 100 percent by employees and to date no increase has been proposed by Community Eye Care. The Board of County Commissioners approved an increase of funding totaling $92,236 (County contribution of $73,286) for the FY2020/2021 Dental Fund. The total Dental Fund budget is currently $670,596 and no increase is recommended. Monthly rates for dental coverage are listed below: Monthly Premium Monthly Orange Monthly Employee Semi Monthly Premium Tier Equivalent County Cost Share Cost Share Employee Cost Share Employee-Only $30.49 $30.49 $0.00 $0.00 Employee children $82.32 $34.58 $47.74 $23.87 Employee spouse $73.17 $33.85 $39.32 $19.66 Family $106.71 $36.51 $70.20 $35.10 FINANCIAL IMPACT: There are no additional appropriations for Health and Dental Insurance for FY2021/2022. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable to this item: • GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND INEQUITY The fair treatment and meaningful involvement of all people regardless of race or color; religious or philosophical beliefs; sex, gender or sexual orientation; national origin or ethnic background; age; military service; disability; and familial, residential or economic status. 4 • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY The creation and preservation of infrastructure, policies, programs and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. RECOMMENDATION(S): The Manager recommends that the Board approve an increase of $0 to the Health and Dental Insurance Fund and recommends the County continued participation as a member in the North Carolina Health Insurance Pool (NCHIP). 5 ATTACHMENT 1 Breakdown of the Total Health Insurance Budget by Enrollment NCHIP RATES ORANGE COUNTY(TOTAL) July 1,2021-June 30,2022 Current PPO Plan Premium Enrollment Monthly cost TOTAL EMPLOYEE EMPLOYER Equivalent COST CONTRIBUTION CONTRIBUTION Employee Only $806.59 561 $452,497 $5,429,964 $0 $5,429,964 Employee+Spouse $1,631.71 45 $73,427 $881,123 $220,968 $660,155 Employee+Child(ren) $1,267.24 187 $236,974 $2,843,687 $515,896 $2,327,791 Employee+Family $2,293.71 33 $75,692 $908,309 $290,997 $617,313 826 $838,590 $10,063,083 $1,053,453 $9,035,223 Premium TOTAL EMPLOYEE EMPLOYER Current CDHP Plan Equivalent Enrollment Monthly cost COST CONTRIBUTION CONTRIBUTION FY2020/2021 Employee Only $680.52 116 $78,939 $947,270 $0 $947,270 Employee+Spouse $1,369.49 19 $26,020 $312,244 $59,326 $252,918 Employee+Child(ren) $1,065.16 48 $51,128 $613,532 $85,893 $527,639 Employee+Family $1,922.26 28 $53,823 $645,879 $161,472 $484,408 211 $209,910 $2,518,925 $352,399 $2,212,235 1037 $1,048,501 $12,582,008 OMM $11,247,458 NCHIP RATES ORANGE COUNTY(Active) July 1,2021-June 30,2022 Current PPO Plan Premium Enrollment Monthly cost TOTAL EMPLOYEE EMPLOYER Equivalent COST CONTRIBUTION CONTRIBUTION Employee Only $806.59 481 $387,970 $4,655,637 $0 $4,655,637 Employee+Spouse $1,631.71 35 $57,110 $685,318 $171,864 $513,454 Employee+Child(ren) $1,267.24 175 $221,767 $2,661,204 $482,790 $2,178,414 Employee+Family $2,293.71 30 $68,811 $825,736 $264,542 $561,193 721 $735,658 $8,827,895 $919,196 $7,908,699 Premium TOTAL EMPLOYEE EMPLOYER Current CDHP Plan Equivalent Enrollment Monthly cost COST CONTRIBUTION CONTRIBUTION FY2020/2021 Employee Only $680.52 107 $72,815 $873,775 $0 $873,775 Employee+Spouse $1,369.49 17 $23,281 $279,376 $53,081 $226,295 Employee+Child(ren) $1,065.16 47 $50,063 $600,750 $84,104 $516,647 Employee+Family $1,922.26 26 $49,979 $599,745 $149,938 $449,807 197 $196,137 $2,353,646 $287,122 $2,066,524 918 $931,795 $11,181,541 $1,206,319 $95975,223 6 NCHIP RATES ORANGE COUNTY(Pre 65 Retiree) July 1,2021-June 30,2022 Current PPO Plan Premium Enrollment Monthly cost TOTAL EMPLOYEE EMPLOYER Equivalent COST CONTRIBUTION CONTRIBUTION Employee Only $806.59 80 $64,527 $774,326 $0 $774,326 Employee+Spouse $1,631.71 10 $16,317 $195,805 $49,104 $146,701 Employee+Child(ren) $1,267.24 12 $15,207 $182,483 $33,106 $149,377 Employee+Family $2,293.71 3 $6,881 $82,574 $26,454 $56,119 105 $102,932 $1,235,188 $108,664 $1,1265524 Premium TOTAL EMPLOYEE EMPLOYER Current CDHP Plan Equivalent Enrollment Monthly cost COST CONTRIBUTION CONTRIBUTION FY2020/2021 Employee Only $680.52 9 $6,125 $73,495 $0 $73,495 Employee+Spouse $1,369.49 2 $2,739 $32,868 $6,245 $26,623 Employee+Child(ren) $1,065.16 1 $1,065 $12,782 $1,789 $10,992 Employee+Family $1,922.26 2 $3,845 $46,134 $11,534 $34,601 14 $13,773 $165,279 $19,568 $1455711 119 $116,706 $1,400,467 $128,232 $1,272,235