Agenda

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County Administrator's Report 14. 18.

BCC Regular Meeting

Budget & Finance Consent

Meeting Date:	10/03/2019
Issue: Group Medical Insurance
From:	Meke Posey
Department:	Human Resources
CAO Approval:

RECOMMENDATION:

Recommendation Concerning Group Medical Insurance - Paulette Stallworth, Interim Human Resources Department Director

That the Board takes the following action concerning the County’s Group Medical Insurance:

A. Approve the employee and retiree health insurance premiums for the Plan Year 2020;

B. Authorize a deposit of $600 per month into the Health Savings Account (HSA) for employees who have elected this Plan;

C. Authorize the rates for Plan Year 2019 Health Care Opt-Out Program ($200 a month) to remain the same for Plan Year 2020; and

D. Authorize these changes for Plan Year 2020. For Blue Option 3559, increase the co-pay for specialist from $30 to $50 per office visit and increase the employee premium by 8% due to the Per Employee Per Month cost running 125.1% more than Blue Option 3359.

[Funding Source: Fund 501, Internal Service Fund, Cost Center 150108, Object Code 54501]

BACKGROUND:

Plans 3359 and the HSA will not have any changes this year.

The forecasted increase for our plans this year is trending at 4.9%. USI went through the pharmacy Contract and found a savings of approximately 1.1 million dollars without affecting the employees.

The monthly employee contribution for Plan 3559 is shown in Attachment A. The monthly retiree contribution for retirees is shown in Attachment B. There is reflected an 8% increase in employee premiums on Plan 3559 due to a Per Employee Per Month cost, which is running 125% more than the 3359 Plan. This is based on the employee utilization of the Plan. It is suggested to even out “the net per employee per month cost” by changing the co-pay of the specialist ($30 to $50) as well as increase the premium by 8% for Plan 3559.

Our claims are trending this year at $21,993,481. Stop Loss and administrative fees are trending at $1,920,426.99. This does not include the staffing cost, the cost of the clinic, or any retirees that we have on Medicare Plan F, Pharmacy, or Medicare Advantage.

We are continually looking at ways to reduce costs through plan design, stop loss measures, and any other available measures. In the next year, the County will be actively looking at ways to reduce costs and still have a health plan that will be attractive to our employees.

The County will offer the existing plans and will provide individual supplement options during open enrollment for retirees that are Medicare-eligible.

BUDGETARY IMPACT:

Funds are available in Fund 501, Internal Service Fund, Cost Center 150108, Object Codes 53401 and 54501.

LEGAL CONSIDERATIONS/SIGN-OFF:

This is in accordance with Florida Statutes 112.09 and 112.0801.

PERSONNEL:

The Human Resources Department and all appointing authorities (payrolls) will have to make the appropriate adjustments to their payroll systems, Human Resources Information System, and work with Florida Blue to ensure changes are made in the respected systems.

POLICY/REQUIREMENT FOR BOARD ACTION:

N/A

IMPLEMENTATION/COORDINATION:

A Purchase Order will be the instrument utilized for making payment against the Contract. The Human Resources Department will coordinate with Legal, the Office of Purchasing, FRS, and the other appointing authorities to ensure all changes are made in the respected systems.

Attachments
2020 Plan Year Proposed Health Insurance Premiums Plan 3559