Discussion and possible action to approve and implement recommendations from the Insurance Committee, regarding County's Employees Health and Retiree programs, which include changes to the current plan thereby necessitating the adoption of an adjusted benefit plan. This action by the Court, to take effect October 1st, (for County Contribution only), and January 1st, 2016, for the Employee contribution, and any other matters incident thereto, and authorizing the County Judge to sign and execute all relevant documents. [Requested by Cynthia Mares, Webb County Administrative Services Director, and Roger Garza, Insurance Consultant]
Issue: The County has experienced account deficits in both the Employee Health Plan and the Retiree Plan. Adjustments need to be made in order to secure reduced costs and in order to balance those funds so that the County reduces risk liability and thereby ensuring that those counts move from operating in deficit to positive balances for the upcoming fiscal year.
Solution: Insurance consultant and Administrative Services department were instructed by the court to look for options that would help the County move from the negative to the positive position. Consultant and staff worked diligently to look at current and past experience on these funds; worked Auditors an Budget officers, to gather data to be able to present viable options.
The Insurance committee met on September 23rd, to listen to presentations from staff, consultant, and representatives from TAC and Blue Cross/Blue Shield. Committee met for several hours to review data and recommendations on the table. The final analysis and consensus from the committee, that for the court to be solvent on these funds, "changes" to the rates and benefits plan are inevitable. The committee voted unanimously to present these options to the court at the September 28t meeting for their approval.
Recommendations:
1) Employee Health Plan:
a) Increase county contributions $517.50 (per month), effective October 1, 2015;
b) Increase the employee contribution tiers by 15%, (except the "employee +
Child tier" --that is at acceptable rate), effective January 1, 2016;
c) Adjust the "waiting period" for new employees from 30 days, to "90 calendar days" effective January 1, 2016;
d) Adopt an 80-20 benefit plan, that will make adjustments to: deductible, co-insurance and prescription co-pays;
2) Retiree Health Plan:
a) Increase the County Contribution to $430.00 (per month), effective October 1, 2015;
b) Adjust the retiree contribution to $381.00 (per month), effective January 2016.
Result: These recommended adjustments project an expected claims reduction of approximately, $.4 million, according t TAC estimates. An increase in employee and county contributions of approximately $1,000,000 are expected to help the county balance the current deficit situation.
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