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County Administrator's Report 15. 16.
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| BCC Regular Meeting |
Budget & Finance Consent |
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| RECOMMENDATION: |
Recommendation Concerning Group Medical Insurance - Thomas G. "Tom" Turner, Human Resources Department Director
That the Board take the following action concerning the County’s Group Medical Insurance (PD 08-09.042, Group Medical, Life, and Disability Insurance):
A. Approve a three-month extension of the present Contract to December 31, 2014, without a premium increase and authorize a contribution of $150 into the HSA (Health Savings Account) of each employee who elects the HSA coverage for the period of October 1, 2014, through December 31, 2014;
B. Accept the third-year renewal with Florida Blue, for the last year of a three-year Pro Share Agreement, from January 1, 2015, to December 31, 2015, to provide health insurance coverage, in the form of plans Blue Option 1352, Blue Option 1552, Health Saving Accounts (HSA), and Blue Medicare and Group Rx for retirees who are Medicare-eligible;
C. Approve the employee and retiree health insurance premiums; the provided Attachment "1" shows premiums reflecting a $20 discount for employees who do not use tobacco; the provided Attachment "2" shows the health insurance premiums for the County’s retirees; retirees will be responsible for paying their full premium, whether they are Medicare-eligible or not;
D. Authorize staff to deposit $600 into the HSA account of each employee who elects the HSA Plan; this will assist the employee in paying the higher deductible ($2,100 or $4,200); the deposit will be reviewed each year at renewal time; along with monthly administrative fees of $2.50 per member, a one-time start-up fee of $22 for each new employee who enrolls; the cost is included in the total cost estimate;
E. Approve a three-year Wellness incentive of $150,000 from Florida Blue, with the understanding that if the Board cancels coverage before 2017, the County would forfeit and return $100,000 or if the County cancels coverage before 2018 the County will forfeit and return $50,000; and
F. Authorize the County Administrator to sign the Employer Application and the BLUEMEDICARE Group Master Agreement upon review by the Legal Department.
[Funding Source: Fund 501, Internal Service Fund, Cost Center 140609, Object Code 54501] |
| BACKGROUND: |
Based on our demographic data and claims versus premiums experience, Florida Blue will extend our contract until December 31, 2014 with no premium increase. Our initial premium increase for the upcoming year was forecast for 6%. Through further negotiations and our utilization (claims versus premiums) we received an increase of 4% to our health insurance cost with no changes to our present health insurance plans for the period of January 1 to December 31, 2015.
In this year’s contract, Florida Blue has offered a $150,000 grant to further our Wellness programs with a contingency that if we cancel coverage before 2017, we would forfeit and return $100,000 or if we cancel coverage before 2018 we would forfeit and return $50,000.
Presently, we are in a three year Pro Share Agreement that expires December 31, 2015. The estimated refund accrual that we would receive through May 30. 2014, is approximately $2,235,000. Changes in this amount will depend on claims experience through December 31, 2015.
Attached is a letter from the Florida Blues Strategic Account executive, Public Sector, Dave Sanna with the terms relating to our renewal.
The estimated cost, including the increase, is $21,000,000. This includes active employees and retirees.
The County will offer the other existing plans and will provide individual supplement options during open enrollment for retirees that are Medicare-eligible.
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| BUDGETARY IMPACT: |
Funds are available in Fund 501, Internal Service Fund, Cost Center 140609, Object Code 54501.
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| 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, HRIS (Human Resources Information System) and work with Florida Blue to ensure changes are made in the respected systems. |
| POLICY/REQUIREMENT FOR BOARD ACTION: |
| BCC Regular Meeting, County Administrator Report Car 14-24 of June 10, 2013 and BCC Regular Meeting, County Administrator Report Car II-15 of July 25, 2013. |
| IMPLEMENTATION/COORDINATION: |
A voucher 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.
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