4-4-22 BOC Regular Meeting - Laserfiche WebLink

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Motion Result: Passed VI.0 Lee County Health Insurance Program Mark Browder, Mark Ill Benefits Consultant, provided information about the County's health insurance program. At the Commissioners'Budget Retreat in January, the County Manager communicated that due to impacts from the COVID-19 pandemic, the County's health insurance claims were running at a very high rate. The Manager communicated to the Board that he anticipated the renewal to be an increase of 12 to 15 percent. Two proposals were provided by Mr. Browder. The fully insured plan would be a renewal of 13.1%. A quote for a self-insured plan was 15.1%, however the County will not pay all of these claims in year one. Mature claims typically run 60 days behind. As we set up a health insurance fund to help pay for the plan, this cash flow will be realized in the first year and provide an immediate fund balance to help with future claims. In addition, a self-insured plan allows the County to modify the plan, where a fully insured plan is one that Blue Cross Blue Shield (BCBS) dictates. This flexibility is important as we begin to further address the heath and wellness of employees. Another issue that came up at the Board's Budget Retreat was the cost the employees are paying for health insurance coverage. In researching other local government jurisdictions, the County's family coverage was the highest in the area at $820 per family in the Health Savings Account (HSA) plan. The average was $600, so the goal over the next two years is to lower the family plan costs to under $700. This coming year the cost will be $720. All other costs to employees will be held at the FY 21-22 amount. One of the advantages of going to a self-insured plan is the County can change the levels of coverage. Staff recommended the addition of a spouse only level of coverage. The reason for this is the need to add more lives to be covered in the plan for efficiency. Lowering the costs and adding the spouse coverage will hopefully make the HSA plan more attractive to employees and prospective employees. Being self funded gives substantially more flexibility for dependent premiums from the County and participant side. The recommendation is that the County transition to being self funded from being fully insured. County Manager John Crumpton said going self insured gives the County more flexibility in rates and allows the County to be more competitive. Motion: Motion to authorize the Chair to sign the contract with Blue Cross Blue Shield of North Carolina approving the County to become a self-insured plan effective August 1, 2022 through July 31, 2023, approve the addition of employee and spouse to listed categories in the HSA plan, approve the rates for the PPO and HSA plans as presented and approve wellness incentives for employees participating in the County's wellness program. Mover: Cameron Sharpe Moved To: Approve For: 6 — Dr. Andre Knecht, Robert Reives, Cameron Sharpe, Kirk Smith, Bill Carver, Mark Lovick Absent: 1 — Arianna Lavallee Motion Result: Passed VI.D Amendment to Resolution for Establishment of Policy and Procedures for Appointments to County Boards, Commissions, Committees or Authorities RESOLUTION - Amendment to Bd Appoint. Policy - #2016-2.pdf AMENDED RESOLUTION FOR ESTABLISHMENT OF POLICY AND PROCEDURES FOR APPOINTMENTS TO COUNTY BOARDS - Final.docx