02/09/2016 (3) - Laserfiche WebLink

Home Browse Search

Board of County Commissioners Page 4 of 4 January 25, 2016 Summary and Conclusion The total loss for fiscal year 2014/15 ($2,763,295) equates to $150/month per employee. Based upon the projected increase- of 9.0%, the County's healthcare expenses are projected to reach $19.7 million in fiscal year 2015/16 (up $1.6 million). This increase will be partially offset by the $30/month increase in the employer premium approved by the Board for this year ($460,000 in additional revenue). Therefore, staff projects a loss of $3.9 million for fiscal year 2015/16. Without any changes, a premium increase of about $210/month would be needed to eliminate the shortfall. There are essentially three ways to reduce the impact of the shortfall on the County—and resultantly, the taxpayer; 1.) shift costs to the employee, 2.) make efforts to reduce overall costs, or 3.) a combination of 1.) and 2.). Staff recommends that any measure to reduce the overall costs be taken prior to shifting costs to the employees. However, due to the magnitude of the shortfall, both measures will be needed to accomplish this task. Please see a listing of potential cost-saving measures and adjustments that may be considered to make necessary changes to the County health plan: 1. Consumer -directed health plans 2. Basic plan design changes (multiple plan levels, co -pay, deductible increases, increased tiers) 3. Premium increases (employer and employee) 4. Employee Wellness Clinic 5. Wellness initiatives 6. Pharmacy Benefit Manager (PBM) 7. International Prescription Provider 8. Optional Supplemental Products (e.g. HRA's, HSA's, PERP) The solution will likely be a combination of several items listed above. Staff has presented several options that can be researched further and presented to the Board as a potential plan to ensure the long- term financial stability of the County health plan. It may be necessary to take a phased approach to implement multiple changes as well. This would afford additional time for the County to provide the necessary education and outreach to assist employees through the process. Recommendation Staff recommends that the Board of Commissioners provide direction to staff regarding which options should be explored further for a future presentation and recommendation to the Board. Attachments Health Insurance Premium Summary APPROVED AGENDA ITEM: / Joseph A. Baird County Administrator OR: February Q, 2016 Indian River County Approvgd Date Administrator County Attorney Budget I ZZ 16 Department a 7 Risk Management 78