Okaloosa County BOCC — July 19, 2016 — FY 17 Benefits Renewal — agenda request

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: July 19, 2016 TO: Honorable Chairman and Members of the Board FROM: Laura Porter SUBJECT: FY 17 Benefits Renewal DEPARTMENT: Risk Management BCC DISTRICT: ALL STATEMENT OF ISSUE: Request approval to proceed with finalizing a new contract with Florida Blue for group health insurance and approval of employee benefit plans renewals for FY17. BACKGROUND: As part of the overall compensation and benefits package, the County provides individual group health and dental insurance with family plan options paid 100% by the employees. In addition, the County provides $25,000 of basic life insurance with AD&D insurance to full time employees with additional optional coverage available to employees and their families paid 100% by employees. The County provides a basic long term disability (LTD) benefit to employees with a buy-up option paid 100% by employees. A group vision product is available to full time employees, paid 100% by employees. The County also provides employees with a flexible spending account (FSA). This program allows employees to take advantage of tax saving on qualifying medical expenses. The administration fees associated with this program are paid by the County, but the accounts are funded by the employees through payroll deduction. The employees of the Clerk of Circuit Court, Supervisor of Elections and Property Appraiser currently participate in these group insurance programs. Employees of the Tax Collector participate in the county’s dental, life, long term disability, flexible spending account and vision insurance programs, but do not participate in the county’s group health insurance program. Earlier this year, the county solicited proposals for the group health insurance benefits (RFP RM 51-16). Florida Blue and United Health responded and provided proposals. The selection committee reviewed the proposals and recommends the bid submitted by Florida Blue. Florida Blue has been the group health insurance provider for the county since 2008. While the proposal with Florida Blue requires a 6% increase in premiums in order to maintain the same coverage levels, it provides for renewal of the 100% Proshare agreement. The Proshare agreement has provided in excess of $5.5 million dollars back to the county in returned premiums over the past 10 years. The Proshare rebates have been used to provide premium offsets for employees and pay increases during difficult financial times for the county. The County added an integrated Health Reimbursement Account (HRA) in fiscal year 2015 - 2016 for employees who are covered by another health plan and opt out of the group insurance benefit. The County will continue to provide the $1,200 annual benefit to employees qualified to participate in the HRA. The Standard Insurance Company provided a 5-year rate guarantee for life, AD&D and LTD insurance; therefore there will be no rate increase for these benefits for FY17. An optional group vision insurance program through Standard is available to employees at their cost. The rates for this program will remain unchanged. Metlife is the provider of dental coverage for county employees. Staff is negotiating a renewal rate at this time, not to exceed 25% (estimated $54,416 annual increase across all BCC funds to retain current plan coverage). OPTIONS: Approve/Disapprove RECOMMENDATIONS: In order to finalize budget estimates and conduct employee open enrollment meetings in August, we are requesting conceptual approval of the benefits package. Staff recommends the following employee benefits package which may be approved in aggregate or separate motions. Upon finalization, new and renewing contracts that require approval will be brought back to the Board for final action and signature.  pprove health insurance with Florida Blue at 6% rate increase.