Laserfiche WebLink
gV'g COIN? <br /> �Q4 rwz l , <br /> U� 7 <br /> * * Human Resources Department <br /> Cx 01, <br /> MEMORANDUM <br /> To: Board of Commissioners <br /> From: Lundee Covington, HR Director <br /> Johanna Ray, Health &Wellness Manager <br /> cc: Mike Downs, County Manager <br /> Megan Smit, Clerk to the Board of Commissioners <br /> Date: February 27, 2017 <br /> Subject: Health Insurance Renewal FY2018— March Meeting Agenda <br /> The County currently provides health coverage to over 1,000 employees and 1,400 covered <br /> lives offering two plans, a traditional "Open Access Plan" (OAP) with a Health Reimbursement <br /> Account (HRA) account and a Consumer Directed Plan with a Health Savings Account (HSA). <br /> Approximately 60% of our employees are on the OAP plan. This plan is currently the more <br /> expensive of the two plans. The health insurance budget for FY2017 was $9,758,278. The <br /> renewal quote provided by our broker, Mark IIII calls for a 7.08% increase for FY2018 taking this <br /> over the $10,000,000 level for the first time. <br /> We are proposing the following policy and plan changes to reduce the renewal rate: <br /> Proposal 1: New hires <br /> New employees with health plan coverage effective 7/1/17 or thereafter would be offered the <br /> Consumer Directed/Health Savings Account (HSA) plan as the only coverage option. Existing <br /> employees can continue to move between the two existing plans. <br /> Planned effect: This will potentially change the balance between the two plans with higher <br /> utilization of the more cost effective HSA plan. <br /> Proposal 2: Retiree Dependents <br /> Retirees participating in the County health plan will be required to select dependent coverage at <br /> the time of retirement. Beyond that point, dependents can only be dropped and not added. <br /> Planned effect. <br /> The goal is to minimize adverse selection on the plan and to preserve the benefit for employees <br /> and retirees at cost effective rates by limiting future claims with premium offset. <br /> 65 Church Street SE (28025) •P.O. Box 707 Concord, NC 28026-0707 <br /> Phone: 704.920.2200 • Fax: 704.920.2250 <br /> Website: www.cabarrusdb%"t number 1 \n <br /> F-7 Page 102 <br />