Agenda Package - 4-16-2012 Budget and Regular Meeting

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Ci9 LEE COUNTY COO (94CJ 'ODD OQ 0 Committed Today for a Better Tomorrow LEE COUNTY BOARD OF COMMISSIONERS ITEM ABSTRACT ITEM NO. V. B. Information Meeting Date: April 16, 2012 XX Action Item Consent Agenda SUBJECT Changes to Lee County Health Insurance Plan DEPARTMENT Human Resources CONTACT PERSON Joyce McGehee, SPHR, Human Resources Director REQUEST Approve proposed health insurance recommendations and authorize the Chairman to sign the Application and Contract for Blue Cross and Blue Shield for Health Insurance effective August 1, 2012 through July 31, 2013. SUMMARY It is recommended that Lee County stay with BCBS of North Carolina for the upcoming year. It is recommended that the current PPO health insurance benefits remain the same for FY 2012 -13. The PPO Plan is a basic co -pay plan of $20 for office visits and pharmacy co -pays of $4, $40 and $55. The monthly cost to the employee will increase from $54.63 per month to $67.71 per month effective August 1, 2012. It is recommended that the current HSA Plan remain the same with a $1,000 contribution by the County to staff that participate in this Plan. The County's contribution is made to the HSA Plan to help defray costs because the HSA Plan does not have co -pays for office visits and pharmacy. Employees are responsible for 100% of charges up to $1,500 before BCBS pays anything. The employee contribution will remain at $0. It is recommended that retirees who are pre -65 years of age have the option of choosing between the PPO and the HSA. It is recommended that post -65 retirees remain on the MAPD Plan which is expected to increase in January 2013 by 12 %. BUDGET IMPACT Health Insurance costs increase to the County would be would 11.29% with an overall increase of 12.05 %. ATTACHMENT(S) Costs worksheet PUBLIC HEARING No PRIOR BOARD ACTION N/A RECOMMENDATION Approve proposed health insurance recommendations and authorize the Chairman to sign the Application and Contract for Blue Cross and Blue Shield for Health Insurance effective August 1, 2012 through July 31, 2013.