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  County Administrator's Report     11. 2.    
BCC Regular Meeting Budget & Finance Consent  
Meeting Date: 10/06/2016  
Issue:    Group Medical Insurance
From: Thomas Turner
Department: Human Resources  
CAO Approval:

RECOMMENDATION:
Recommendation Concerning Group Medical Insurance - Thomas G. "Tom" Turner, Human Resources Department Director

That the Board takes the following action concerning the County’s Group Medical Insurance (PD 08-09.042, Group Medical, Life, and Disability Insurance):

A. Approve the provided employee and retiree health insurance premiums which reflects a 14% across-the-board increase for both the County and employees.  Attachment 1 shows premiums reflecting a $20 discount for employees who do not use tobacco; 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; and 

B. Authorize staff to deposit $600 into the Health Savings Account (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 and a one-time start-up fee of $22 for each new employee who enrolls.  The cost is included in the total cost estimate.   
     
[Funding Source:  Fund 501, Internal Service Fund, Cost Center 150108, Object Code 54501.]
 
BACKGROUND:
The County is in its first year of self-funding with health care and based on the recommendation of AON Hewitt and Florida Blue, premiums should increase by 14% across the board to cover health care costs for the next plan year. For Fiscal Year 15-16, the County is expected to spend about $18,500,000 in health care costs and is expected to spend $21,954,006 in Fiscal Year 16-17.
The number provided relates to the unknown factors (i.e. trend) as well as expected medical inflation. The County is actively 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 supplemental options during open enrollment for retirees that are Medicare-eligible.

Funding for dental insurance administrative service will remain level. We were able to maintain our administrative cost and keep a network that services the majority of the employees. Any additional cost to dental will come from employees using the plan (i.e. claims). The County went out to bid for life insurance and reduced the cost to the County by approximately $80,000 each year for three years.
 
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 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 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 in the respected systems.

Attachments
Health Rates Jan 17 through Dec 17
Retiree Rates 2017

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