8/20/1991 - Laserfiche WebLink

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Administrator Chandler noted that Mary Stanford is here today to present to the Commission the results of the analysis of the County's health benefits policy. The bottom line of the analysis is that we are looking at an increase of 22% rather than the 30% increase we had included in the proposed budget for fiscal year 1991-92, and, if the plan proceeds as we anticipate, we expect to be looking at a minimal increase in the following year also. Commissioner Scurlock understood then that the result of the study actually reduced the budget amount by $283,000 or 22%, and Administrator Chandler explained that the substantial reduction is due primarily to a change in bidding the policy and a vastly improved Preferred Provider Organization (PPO) program. The Request for Proposals asked the firms to bid in two ways; to look at the current benefit structure as well as an alternative in terms of a restructured benefit level derived from a vastly improved PPO program. The proposed change in benefits is based on whether or not the insured uses a PPO. Contracts have been negotiated this year with Indian River Memorial Hospital and Doctors Clinic. Commissioner Scurlock asked if they had looked again at the employee's contribution, and Administrator Chandler confirmed that they had looked at that quite closely to see whether or not to recommend an increase in the contribution the employee pays toward dependent coverage. As of now, the employee's contribution is $150 a year for dependent coverage, which, according to the surveys that have been done, is lower than the majority of surrounding counties. We did not pursue an increase in the employee contribution for dependent coverage for next fiscal year because of the expected savings from the PPO program that will be realized at the end of next fiscal year and the subsequent year. If this program does what we anticipate and are confident it will do, we will not be looking at the same cost 29 BOrK U4 AUG �9�