Okaloosa County BOCC — August 4, 2015 — Employee Benefits Renewal — agenda request — reading text

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: August 4, 2015 TO: Honorable Chairman and Members of the Board FROM: Laura Porter SUBJECT: Employee Benefits Renewal DEPARTMENT: Human Resources BCC DISTRICT: All STATEMENT OF ISSUE: Renewal rates for health, dental, life, long term disability (LTD) insurance benefits. BACKGROUND: The County provides employees with health, dental, life and LTD benefits. For the 2015-2016 year, there will be an increase of 3% in employee health insurance rates with Florida Blue as reflected in the table below. Florida Blue has also agreed to renew the 100% Proshare agreement currently in place. Okaloosa County BCC retirees are provided with two health care options: the traditional plan and a Medicare supplement option administered by Florida Blue. For the 2015-2016 fiscal year, retirees on the Medicare supplement plan will benefit from a 4.8% decrease in premiums. FL BLUE BASE PLAN 03769 Old Rate New Rate Paid by (Monthly) (Monthly) EMPLOYEE ONLY SINGLE $738.34 $760.49 BCC FAMILY $388.61 $400.27 Employee RETIREES SINGLE $738.34 $760.49 Individual FAMILY $1,126.95 $1,160.76 Individual FL BLUE BUY UP PLAN 03559 FULL TIME EMPLOYEE $738.34 $760.49 BCC EMPLOYEE SINGLE $50.75 $52.27 Employee CONTRIBUTION FAMILY $466.06 $480.04 Employee RETIREES SINGLE $789.09 $812.76 Individual FAMILY $1,204.40 $1,240.53 Individual BLUEMEDICARE SINGLE $346.60 $330.05 Individual The County changed the dental program in 2014, and it is currently administered by MetLife. Employee response has been positive. As outlined in the contract, the dental rates will increase by 5% for the 2015-2016 year. MET LIFE DENTAL Old Rate New Rate Paid By (Monthly) (Monthly) FULL-TIME SINGLE $20.84 $21.88 BCC EMPLOYEE FAMILY $39.61 $41.59 Employee RETIREES SINGLE $20.84 $21.88 Individual FAMILY $60.45 $63.47 Individual The Standard Company provided a 5-year rate guarantee for life and LTD insurance. The county pays for $25,000 in life insurance coverage per employee, and additional insurance at age- banded rates may be purchased by employees for them and their families. STANDARD INSURANCE Old Rate New Rate Paid by (Monthly) (Monthly) LONG TERM DISABILITY (50%) $3.50 $3.50 BCC LIFE W/ AD&D $25,000.00 Insured $3.25 $3.25 BCC LONG TERM DISABILITY (60%) $2.99 $2.99 Employee The County provides employees with a Flexible Benefits program. This program allows employees to take advantage of pre-tax savings on qualifying insurance premiums and expenses. The administrative fees associated with this program are paid by the County, but the accounts are funded by the employees through payroll deduction. The County realizes an overall savings by providing these benefits; it is estimated that the County saved over $38,000 in matching FICA taxes for the 2014-2015 year. Lockard and Williams is the company currently administering this program. This service was put out to bid, and the committee has recommended continuing with Lockard and Williams. Approval will be requested in a separate agenda item for the contract renewal for this benefit. In the past, the County has offered a stipend to employees who are covered by another health plan and opt out of the group insurance benefit. Due to changes in federal laws related to health care benefits, a change to this program is required. For the 2015-2016 year, the County will be adding an integrated Health Reimbursement Account for qualifying employees. The county would continue to provide $1200 annually to these employees; however, it would be offered through a qualified IRS Section 125 Cafeteria Plan. From a practical perspective, it would operate for the employees the same as the current Flexible Spending Account Program which may be spent on qualified health, dental and vision expenses. An optional group vision insurance program through Standard is available to employees at their cost. The rates for this program will remain unchanged. Formal approval, including any contractual documents requiring signatures for these changes, will be presented to the Board at the next meeting. As the employee open enrollment period begins early August, and group meetings have been scheduled, we are requesting conceptual approval of the benefits package as outlined above. The outlined rates have been included in the FY16 budget proposal. OPTIONS: Approve the renewal rates as outlined above. RECOMMENDATIONS: Request approval of the overall benefits package and rates as outlined above. RECOMMENDED BY: APPROVED BY: John Hofstad, County Administrator