Approve the funding for the proposed schedule of benefits and rates adopted by the Cochise Combined Trust for fiscal year 2014-2015.

Cochise County has been a participating entity in the Cochise Combined Trust (CCT) since July 1, 2002. The Cochise Combined Trust has been administered through Erin Collins & Associates. Beginning July 1, 2013, AmeriBen became the third party administrator for the CCT after being awarded the contract through the request for proposal (RFP) process for a new TPA. Since July 1, 2002, the Board of Supervisors has approved, with the exception of FY 2006-2007, to absorb the increases in the health insurance premiums and have not increased the employees' contribution to the health insurance. The employees had a slight decrease in health insurance premiums in FY 2007-2008 and continue to pay that same premium. Based on the information received from the Trust adminstrators, they project an increase in the overall health insurance costs to the County of approximately $290,000 ($149,421 health insurance, $97,500 PPACA and $44,000 dental insurance) for FY 14/15. As a result of past years’ performance of the Trust, approximately $2.5 million is in reserves. Given this reserve amount, the County Administrator is recommending increasing the per member rate, but not increasing the amount paid into the Trust by either the County or employees. In essence, employees applying for coverage under COBRA and retirees would see an increase in their contribution amounts. A portion of CCT reserves would be used to cover the projected shortfall. On February 28, 2014 at their annual retreat, Cochise Combined Trust (CCT) board members voted unanimously to approve and adopt the FY 2014-2015 CCT annual schedule of benefits and rates. Beginning July 1, 2014, Minnesota Life will be awarded the contract through the request for proposal (RFP) process to administer the life insurance benefit plan for the CCT which will be replacing the current life insurance company, Standard Life Insurance. The overall savings to the County and employees will be approximately $31,000 annually. All County policy holders will be grandfathered in with the same amount of life insurance coverage currently in force as of June 30, 2014. Based on the dental insurance actuary information received from the Trust adminstrators, they project an increase in the overall dental costs to the County employees of approximately $44,000 for FY 14/15. This translates into an increase of approximately 14%. The County Administrator is recommending the use of CCT surplus to cover the increase in the per member rate but not increasing the amount paid into the Trust by employees. Effective July 1, 2014, the Sheakley Flexible Medical Benefit plan will implement the new rollover option of $500 annually which will eliminate the extended plan year through September 15th. On June 30, 2015, participating employees will be able to rollover up to $500 of their flexible medical balance into the next plan year eliminating the "use it or lose it" clause.

The County's open enrollment process will commence April 2, 2014 through April 30, 2014 with the changes in the benefits to take effect July 1, 2014. Employees will be notified during open enrollment of all benefit changes effective July 1, 2014 to include the change to the life insurance and Sheakley FSA programs.

Should the BOS not approve the increase in rates, the amount paid by employees on COBRA and Retirees would not cover the cost of their insurance and in essence the County would subsidize the difference of approximately $965.

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