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Action 11.

Regular Board of Supervisors Meeting

Human Resources

Meeting Date:: 03/10/2020
Title:: Approve the proposed health care benefit cost share between Cochise County, its employees, and retirees for plan year 2020-2021
Submitted By:: Elda Orduno, Human Resources
Department:: Human Resources

Presentation:

PowerPoint

Recommendation:

Approve

Document Signatures:

BOS Signature NOT Required

# of ORIGINALS
Submitted for Signature:

NAME
of PRESENTER:

Elda Orduno

TITLE
of PRESENTER:

Human Resources Director

Mandated Function?:

Federal or State Mandate

Source of Mandate
or Basis for Support?:

11-251(50)

Docket Number (If applicable):

Information

Agenda Item Text:

Approve the proposed health care benefit cost share between Cochise County, its employees, and retirees for plan year 2020-2021 as recommended by the Human Resources Department and the County Administrator.

Background:

On January 17, 2020, the Cochise Combined Trust voted unanimously to a benefit and rate structure plan for plan year 2020-2021. The Trust adopted premium rate increases of 3% for the Exclusive Provider Organization (EPO) plan and a 5.7% increase for the EPO Buy-Up plan. The premium rates for the High Deductible Health (HDHP) and HDHP Buy-Up plans remain unchanged. In addition, the Trust adopted a number of administrative fee increases. After considering the increases in premium rates and fees, we are recommending that the Board approve the following:

County to pay the 3% EPO premium rate increase on behalf of employees enrolled in the plan;
Retirees enrolled in the EPO plan to pay the 3% premium rate increase;
Employees and retirees enrolled in the EPO Buy-Up to pay the 5.7% premium rate increase;
Increases in administrative fees will be paid by the County.

Department's Next Steps (if approved):

If approved, open enrollment will begin on April 1, 2020, and end on April 30, 2020. Informational presentations will begin in mid-March and run through mid-April. Employees will make changes to their benefits via ADP.

Impact of NOT Approving/Alternatives:

Open Enrollment will be delayed while alternative funding strategies are researched by Human Resources and then presented to the Board of Supervisors for consideration.

To BOS Staff: Document Disposition/Follow-Up:

Advise HR of the Board's final vote on the approval request.

Fiscal Impact

Fiscal Year:: 2020-2021

Fiscal Impact & Funding Sources (if known):

Will be budgeted for FY 20-21 if approved by the Board.

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