Broward County Commission Regular Meeting


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AI-27269 91.       
Meeting Date: 08/14/2018  
Director's Name: George Tablack
Department: Finance & Administrative Services Division: Human Resources

Information
Requested Action
MOTION TO APPROVE proposed health insurance funding for calendar year 2019, to prepare for open enrollment, scheduled to begin on October 15, 2018.

ACTION:  (T-11:51 AM)  Approved.  (Refer to minutes for full discussion.)
 
VOTE: 8-0.  Commissioner Sharief abstained from voting, and was out of the room during the vote.
Why Action is Necessary
Board approval is necessary to amend the County’s insurance rates for plan year 2019.
What Action Accomplishes
Provides for continuation of health and pharmacy insurance for calendar year 2019 and approves the items necessary to prepare informational material for open enrollment, which is scheduled to begin on October 15, 2018.
Is this Action Goal Related
Previous Action Taken
None.
Summary Explanation/Background
THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT AND THE HUMAN RESOURCES DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTION.

To prepare for open enrollment for calendar year 2019, currently scheduled to begin on October 15, 2018, this item seeks the Board’s approval of the funding for health and pharmacy benefits with the following plan design changes:

All health plans:
  • No increase to 2019 Employee Contributions.
  • Continue funding the Health Savings Accounts for the HDHP Base and Out-of-Network (OON) plans at the HDHP Base Plan level for an additional year.
  • Reduce new hire/newly benefit-eligible waiting period to the 1st of the month following 30 days in a benefit-eligible position. Waiting period is currently the 1st of month following 60 days in a benefit-eligible position.
UnitedHealthcare Plans:

Implement Diabetes Health Plan for pre-diabetic and diabetic members. Incentivize members with diabetes or pre-diabetes who routinely follow independent, medically proven steps to help manage their condition (such as regular blood tests, routine exams, and preventative screenings and use wellness coaching). Enrollment will be automatic with an opt-out-provision.

• Incentives
  Office visits:
CDH High - no copay when visit is related to diabetes, pre-diabetes and/or high blood pressure and high cholesterol.
HDHP Base and Out of Network - no coinsurance (after annual deductible is met).
  Pharmacy:
CDH High - reduced or waived copays for generic and preferred tier medications and supplies related to diabetes. 
HDHP Base and Out of Network plans - after annual deductible is met, reduced or waived coinsurance for generic and preferred tier medications and supplies related to diabetes not currently covered under the HDHP Preventive Drug list. 

Community Care Plan - Narrow Network Plan:

Implement Qualified Care Coordination Program for diabetes, hypertension and asthma/COPD. Incentivize members who routinely follow independent, medically proven steps to help manage their condition (such as regular blood tests, routine exams, and preventative screenings and use wellness coaching).

• Incentives:
   Office Visits:
 Lower out of pocket maximum
 Primary care visit copay reduced from $25 to no cost
 Specialist visit copay reduced from $50 to $25
 Virtual visit copay reduced from $40 to $20
 MDNow Urgent Care Clinic copay reduced from $25 to no cost
 
  Pharmacy:
Reduced or waived copays for generic and preferred tier medications and diabetic supplies
 
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 12 months to receive County-funding in their 2019 Health Savings Account (HSA) or Health Reimbursement Account (HRA), if not eligible to participate in a Health Savings Account.
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 2019.
Source of Additional Information
David Kahn, Director, Human Resources, Finance and Administrative Services Department, (954) 357-6005

Fiscal Impact
Fiscal Impact/Cost Summary:
The group health insurance agreement on a self-insured basis, based on the proposed plan designs, is estimated to cost $44 million in the expected case, dependent on claims. The estimated cost is made up of the following components: health claims of $39.1 million, retention (including administrative fees, network access, disease management, wellness, and taxes/fees) of $2.8 million, and stop loss coverage of $2.1 million.

The group pharmacy agreement on a self-insured basis, based on the current plan designs, is estimated to cost $13.6 million, dependent on claims. For a total group health and pharmacy cost of $57.6 million.

Based on employee premiums recommended in this item, the County’s estimated cost for health insurance and pharmacy expenses is $53.5 million of the total $57.6 million premium/plan cost (employee contributions are $4.1 million with no shift in enrollment).

In addition, the County’s cost for the incentivized Health Savings Account is estimated to total approximately $9.1 million for 2019 with no shift in enrollment. Also, $2.2 million is estimated for funding for employees who “opt out” of County health insurance (with proof of other group health coverage) at an amount of $3,100 per “opt out” of insurance. The estimated total cost to the County of the health-related benefits for 2019 is therefore $64.8 million.

Funds are included in the Fiscal Year 2019 recommended budget to support this Agreement and programs.

The funding source for the self-insured health and pharmacy coverage:
Health:
5050 023 8221 4515 - Claims
5050 023 8221 4951 - Admin Fees

Pharmacy:
5050 023 8221 4549 - Prescription Plan Self-Insured

Requisition No. PE12171500000000001; Folder No. 14125304
PeopleSoft requisition No. HRS0000037
Attachments
Exhibit 1 - 2019 Health Plan Funding


    

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