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Action 11.

Regular Board of Supervisors Meeting

Human Resources

Meeting Date:: 03/24/2015
Title:: CCT Benefits FY 15-16
Submitted By:: Kelley Jones, Human Resources
Department:: Human Resources

Presentation:

No A/V Presentation

Recommendation:

Approve

Document Signatures:

BOS Signature NOT Required

# of ORIGINALS
Submitted for Signature:

NAME
of PRESENTER:

Julie Morales

TITLE
of PRESENTER:

Human Resources Director

Mandated Function?:

Not Mandated

Source of Mandate
or Basis for Support?:

Docket Number (If applicable):

Information

Agenda Item Text:

Approve the funding for the proposed schedule of benefits and rates adopted by the Cochise Combined Trust for fiscal year 2015-2016.

Background:

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.

On February 27, 2015 at their annual retreat, Cochise Combined Trust (CCT) board members voted unanimously to approve and adopt the FY 2015-2016 CCT annual schedule of benefits and rates.

As a result of past years’ performance of the Trust, approximately $6 million is in reserves. Given that there is a decrease in the insurance costs, a "rate pass" will be in effect for the FY 15/16 benefit plan year. This means that there will not be any change in the County member rate paid into the Trust by either the County or employees. Employees applying for coverage under COBRA will not have a rate change but retirees will see a slight increase in their contribution amounts.

In the current health insurance benefit plan year, the health insurance deductible and out-of-pocket maximum plan is based on a calendar year. As of July 1, 2015, the health insurance benefit plan year deductible and maximum out-of-pocket period will change to a fiscal year. The first year of this plan year covering eighteen (18) months will be July 1, 2015 through June 30, 2016.

Effective July 1, 2015, the Sheakley Flexible Medical Benefit plan maximum has been increased from $2,500 to $2,550.

Department's Next Steps (if approved):

The County's open enrollment process will commence April 1, 2015 through April 30, 2015. Employees will be notified of these changes during open enrollment. Changes will be effective July 1, 2015.

Impact of NOT Approving/Alternatives:

Essentially, there is a "rate pass" for the FY 15/16 which means that there will be no changes in the premiums paid by the County or the employees.

To BOS Staff: Document Disposition/Follow-Up:

None.

Fiscal Impact

Fiscal Year:: 2015-2016
One-time Fixed Costs? ($$$):
Ongoing Costs? ($$$):
County Match Required? ($$$):
A-87 Overhead Amt? (Co. Cost Allocation $$$):
Source of Funding?:

Fiscal Impact & Funding Sources (if known):

501-1400-1450-9-426.903 $7,408,174.00

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