Action 11.
Regular Board of Supervisors Meeting
Human Resources
- Meeting Date:
- 03/08/2016
- Title:
- CCT FY 16/17 Benefits
- Submitted By:
- Kelley Jones, Human Resources
- Department:
- Human Resources
Presentation:
PowerPoint
Recommendation:
Approve
Document Signatures:
BOS Signature NOT Required
# of ORIGINALS
Submitted for Signature:
Submitted for Signature:
0
NAME
of PRESENTER:
of PRESENTER:
James Vlahovich
TITLE
of PRESENTER:
of PRESENTER:
County Administrator
Mandated Function?:
Not Mandated
Source of Mandate
or Basis for Support?:
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 2016-17.
Background:
Cochise County has been a participating entity in the Cochise Combined Trust (CCT) since July 1, 2002. The Cochise Combined Trust is administered through Erin Collins & Associates. AmeriBen is the third party administrator for the CCT medical plan. Each year since 2002 (with the exception of FY 06/07), the Board of Supervisors has approved to absorb the increases in the health insurance premiums and have not increased the employee's contribution to the health insurance. Employees had a slight decrease in health insurance premiums in FY 07/08 and continue to pay that same premium. On January 27, 2016 at their annual retreat, Cochise Combined Trust (CCT) board members voted unanimously to approve and adopt the FY 16/17 CCT annual schedule of benefits and rates. Based on the information received from the Trust administrators, in order to stay fiscally balanced next plan year, medical rates needed to be increased 5.6%, but were recommended to be increased 11.2%. Structural plan changes were adopted by the CCT Trustees to reduce costs across the plan and based on those changes, medical rates were increased only 3%. As a result of past years' performance of the Trust, approximately $5.1 million exists in our reserve. Retirees will pick up the full amount of the medical increase. The County Administrator is recommending that the County absorb the "employee only" medical rate increase, but that employees pay the proposed rate increases for dependent coverage (spouse, child and family tiers). Those costs are outlined in the attached. Although the Trust administrators are not proposing a dental rate increase for FY 16/17, the County Administrator is recommending that the rate increase from 14/15 be reflected in the employee paid dental premiums for FY 16/17, rather than continuing to take the difference from CCT reserve funds. Effective July 1, 2016, the County's third party administrator for vision services will change from EyeMed to Ameritas, however Ameritas will continue to use the EyeMed provider network. There are no proposed increases for employee paid vision insurance. More information regarding FY 2016/17 benefit changes are listed in the attached presentation.
Department's Next Steps (if approved):
The County's open enrollment process will commence April 1, 2016 through April 30, 2016. Employees will be notified of these changes during open enrollment. Changes will be effective July 1, 2016.
Impact of NOT Approving/Alternatives:
Pending updated information from County Administration.
To BOS Staff: Document Disposition/Follow-Up:
No follow up required by BOS staff.
Fiscal Impact
- Fiscal Year:
- FY 16/17
- 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):
Estimated cost increase for FY 16/17: $304,128 total($202,762 GF and $101,366 SRF)