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PRI <br />NY ER <br />Office of the <br />_ = INDIAN RIVER COUNTY <br />ADMINISTRATOR <br />ORIS <br />Joseph A. Baird, County Administrator <br />Michael C. Zito, Assistant County Administrator <br />MEMORANDUM <br />TO: Members of the Board of County Commissioners <br />FROM: Joseph A. Baird <br />County Administrator <br />DATE: April 29, 2016 <br />SUBJECT: Health Insurance Subsidy for Retirees <br />DESCRIPTION: <br />When the Board of County Commission made changes to the Health Insurance subsidy for <br />retirees on June 1, 2008, a policy was instituted that specified that a retiree who reached the <br />eligible age for Medicare would lose the County subsidy. The retiree would have the following <br />available options but could not continue to receive the County subsidy: 1) enrolling in the <br />B1ueMedicare Advantage Plan offered by the County (a fully insured Florida Blue product); 2) <br />continuing in the County's Health Insurance plan (a self-insured plan); or 3) enrolling in a <br />Medicare supplemental plan on the open market. Very few retirees take the BlueMedicare <br />Advantage Plan because of the limited network and the cost, which is currently $319.92 per <br />month per person. Retirees who had carried dependent coverage for a younger spouse or other <br />eligible dependents could continue to do so by remaining on the County's Health Insurance Plan <br />and paying 100% of the County's premium, which is currently $745 per month for the retiree <br />and dependents. This was an unintended consequence of this policy that we did not anticipate at <br />the time this change was made, and it was never our intent for this to happen. <br />ANALYSIS: <br />It is my opinion that the County should allow a retiree's dependents to remain on the county <br />health insurance plan when the retiree enrolls in Medicare and continue at the subsidized rate. <br />Allowing this change will most likely increase costs in Other Post Employee Benefits (OPEB) <br />85 <br />