THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT AND THE HUMAN RESOURCES DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTIONS.
To prepare for open enrollment for calendar year 2018, currently scheduled to begin on October 16, 2017, this item seeks the Board’s approval of the funding for health and pharmacy benefits with the following plan design changes:
High Deductible Health Plan (HDHP) Base Plan
• Increase annual deductible by $50 for Employee Only coverage (to total $1,350) and by $100 for Employee Plus Dependents coverage (to total $2,700) consistent with Internal Revenue Service regulations for a qualified HDHP .
• Decrease coinsurance from 30% to 20%; Out of Pocket Maximum remains the same.
• Continue for an additional year the incentive to fund the annual deductible by tier of coverage to a HSA or Health Reimbursement Account (HRA).
• 2018 Employee Rates remain the same as 2017.
HDHP Out-Of-Network Plan
• Provide Health Savings Account (HSA) funding equal to funding given to the HDHP Base Plan.
• Decrease coinsurance for in-network benefits from 30% to 20%; Out of Pocket Maximum remains the same.
• 2018 Employee Rates remain the same as 2017.
Consumer Driven Health (CDH) High Plan
• No changes in plan design or employee rate for 2018.
Consumer Driven Health (CDH) Low Plan
• Eliminated and replaced with a Narrow Network (described below).
Narrow Network (NEW)
• As discussed at the Budget Workshop on August 22, 2017, and pending reaching a mutual agreement on terms, the County would eliminate the CDH Low Plan and implement a new, Narrow Network health plan through Community Care Plan (CCP), a third party administrator, through a most reasonable source designation.
• The Narrow Network plan would be limited to physicians, facilities and hospitals in the Memorial Healthcare System, North Broward Hospital District, Holy Cross Hospital and Cleveland Clinic Florida – Weston.
• The plan would offer employees a higher benefit level (similar benefits to the CDH High Plan) at an employee rate similar to the CDH Low Plan but limited to the narrow network.
• This recommendation is contingent on reaching a mutual agreement with CCP that can be approved by the Board at its October 10, 2017 meeting to ensure timely inclusion for open enrollment. If a mutual agreement is not reached or approved by the Board at its October 10, 2017 meeting, then the CDH Low Plan will not be eliminated and will have no changes in plan design or employee rate for 2018.
• In addition to education during the open enrollment period, in an attempt to ensure that employees who select this new plan have a full understanding of the Narrow Network, staff will meet with these employees after open enrollment closes. These employees will be allowed to change plans prior to January 1, 2018, if they determine the new Narrow Network plan is not the right plan for their health care needs.
This recommendation also includes the continuation of the following health program initiatives:
1. The annual waiver credit of $3,100 for employees who opt-out of the County’s health insurance program with proof of other group coverage;
2. The $20 bi-weekly surcharge for working spouses/domestic partners who have health coverage available from their employers, but chose to enroll in the County health plan;
3. The Engagement Incentive with the requirement that employees (and spouses/domestic partners enrolled in a County health plan) must complete a designated preventive screening within the prior twelve months to receive County-funding in their 2018 Health Savings Account (HSA) or Health Reimbursement Account (HRA);
4. The interactive, on-line enrollment decision support tool, ALEX; and
5. Increased education and advocacy for employees.
Exhibit 1 reflects the actuarial health and pharmacy insurance premiums, County contribution amounts, net employee cost, and Health Savings Account amounts for each plan and tier of coverage for plan year 2018.
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