HomeMy WebLinkAboutAgenda - 05-08-2002 - 8f ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 8, 2002
Action Age a
Item No.
SUBJECT: Health Insurance Continuation Option for County Commissioners
DEPARTMENT: County Commissioners PUBLIC HEARING: (YA) Nc
Office/Personnel
ATTACHMENTS INFORMATION CONTACT:
1 - Draft Revision to Board Policy, Bent'Jacobs, Board Chair,
"County Comnbutian For Extension 2130
Commissioners' Benefits" Elaine Holmes, Personnel Director,
2—Report on Commissioner/Council Extension 2550
Health Insurance Continuation TELEPHONE NUMBERS:
Options at End of Tenn Hlllsbarough 732-6181
Chap it HIII 9684SD1
Durham 688-7331
Mebane 336-227.2031
PURPOSE: To consider providing an option for County Commissioners to continue to
participate in the County's group health insurance at the end of the Commissioner's term in
office by the Commissioner paying the full cost for such health insurance coverage.
BACKGROUND: Under the Board of Commissioners policy adopted effective July 1, 2000
(Attachment 1), Orange County provides health insurance benefits for County Commissioners.
At present, such coverage ends with the end of the Commissioner's term in office with the
option to continue coverage under the Federal COBRA law for up to 18-months by the
Commissioner paying the full coat.
The above coverage is the same as that provided for County employees except that County
employees who ere eligible under the County's names health insurance policy may continue on
the County health insurance and continue to receive the County health insurance contribution at
retirement.
At the request of the Board, Personnel surveyed surrounding cities and counties as to their
handling of Commissioner/Council members health insurance coverage at term and.
Attachment 2 summarizes the survey results. Of the eight cities and counties surveyed who
offer health insurance coverage to CommesionerslCouncil members,three(Alamance, Durham
and Wake Counties) offer a heath insurance continuation option in addition to COBRA:
• Alarmnce provides for continuation of group health coverage after two terms with the
Commissioner paying 50 percent of the cost.
Durham provides such coverage alter three terms with the County paying 100 percent of the'
cost.
Wake County provides such coverage at age 62 with the County paying 50 percent of the
cost if the Commissioner serves one term and 100 percent of the cost if the Commissioner
serves two or more terms.
On Attachment 1 in bold type are shown proposed amendments to the Board's Policy on
Benefits for Orange County Commissioners that would provide the option for Commissioners to
continue to participate in the County's group hearth insurance coverage at term end, after one
term of service, by paying the full cost of such coverage.
For the County to offer such option for Commissioner coverage, it Is necessary for the County's
health insurance providers to agree to amend the County's contract to include this continuation
option. The NCACC health insurance trust(offering the County's two Blue Crass plans) has
advised orally that it would be willing to extend such coverage.
FINANCIAL IMPACT: None. The County Commissioner electing to participate in this
continuation option will pay the full cost of health insurance coverage.
RECOMMENDATION) The Manager recommends that the Board adopt the amended
Policy on Commissioners Benefits as shown in Attachment 1 affaci lve July 1, 2002.
Attachment 1
POLICY: County Contribution for Commissioner's Benefits
(Pmposed Amendments Shown in Bold Type)
1. The Board of County Commissioners authorizes that the compensation of the County
Commissioners will include the County contribution for health insurance, dental
insurance, and life insurance that is provided for permanent County employees, provitletl
the Commissioners are eligible for this coverage under the insurance contracts and other
contracts affecting these benefds.
The Board fuller provides Net County Commissioners may continue to
participate in the County's group health insurance at term and by paying the full
cost of such coverage, provided such coverage Is available under the insurance
contracts affecting this benefit The covered! County Commissioner pays Orange
County 100 percent of the cost of required premiums monthly. If the
Commissioner Is age 55 or older, Medicare becomes the primary Insurer and group
health insurance ends.
2. The Board of County Commissioners further authorizes that the compensation of the
County Commissioners will include a County contribution for each Cornmissioner to the
Deferred Compensation (457) Supplemental Retirement Plan that is the same as the
County contribution for non-law enforcement County employees to the State 401(k) Plan.
3. The Board of County Commissioners directs the County Manager to incorporate in the
Budget Ordinance each fiscal year a County contribution amount for each
Commissioner's health, dental and life insurance equivalent to the County contribution
amount for Permanent County employees.
4. The Board of County Commissioners further directs the County Manager to incorporate
in the Budget Ordinance each fiscal year a County supplemental retirement contribution
for each commissioner that is the same as the County contribution for non-law
enforcement County employees to the State 401(k) Plan.
5. The Seem of County Commissioners adopts the County contribution for Commissioners'
health, dental and lie insurance and supplemental retirement for the fiscal year through
the adoption of the Budget Ordinance for that year
d
Attachment
Survey of Commissioner/Council
Health Insurance Continuation Options At Term End
Health Insurance Health Insurance
Offered to Continuation Options Paid by Medicare
CiirCounty Councilor at Me end of term supplement
Commissioners?
Alamance County Yea Yes after 2 terms 50%County 50%County
50%Commissioner 50%Commissioner
Carfl orm No NIA N/A N/A
Cog Yes Only COBRA N/A N/A
Chapel HIM No N/A N/A N/A
Chatham Coumtv Yes 0i COBRA NIA N/A
Durham City Yee Onl COBRA NIA NIA
Durham COUM Ves Yes aXer3terme
100%County 100% County
Owes Cou Yes - Onl COBRA N/A NIA
Rehear Yes Clnt COBRA NIA NIA
If under age 62, COBRA
Wake County Yes onl 100%Commissioner NIA
A er age 62 eligible as
retiree.
With 1 term in office 50%County 50%County
50%Commissioner 50%Commissioner
With plus terms 100% Coun 100% County