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Departmental Matters
<br />Indian River County %
<br />Inter -Office Memorandum _.1..
<br />Office of Management and Budget
<br />To: Members of the
<br />Board of County Commissioners
<br />Date: June 8, 2016
<br />Subject: Health Insurance - Summary of Cost Saving Re
<br />From: Jason E. Brown - Director, Management & Budget
<br />Background v
<br />Indian River County utilizes a self-insured group health insurance program. Program expenses for
<br />health insurance claims and program administration are paid from contributions from employer and
<br />employee contributions. Extraordinary claims are addressed through reinsurance. Program participants
<br />include full-time employees and retirees of the Board of County Commissioners and the respective
<br />Constitutional Officers (Sheriff, Property Appraiser, Tax Collector, Clerk of Courts, and the Supervisor of
<br />Elections).
<br />On February 9, 2016, staff provided a presentation to the Board of County Commissioners regarding the
<br />County's health insurance fund. A brief update of the Health Insurance Fund was provided, along with
<br />details about increasing healthcare expenses which have led to losses in recent years. Various options
<br />to address these losses were presented. Following'the presentation, the Board discussed various
<br />alternatives and received input from the public. Staff was tasked with researching alternatives further
<br />and providing a recommendation back to the Board of County Commissioners. Please find the
<br />requested information below.
<br />Alternatives & Analysis
<br />As discussed previously, the County's healthcare costs, both in terms of health claims incurred and the
<br />impacts of medical inflation, have increased significantly over the last couple of years. The following
<br />graph shows the net revenues of the self-insured health program from FY09 through FY17 (projected).
<br />Health Program Net Revenues
<br />$4,000,000,— _.FYO9_=F_Yl6 P_r-ojected) _ __
<br />53,032,903 --� --
<br />$3,000,000 �
<br />$2,000,000 —
<br />_ $1,761,580
<br />:,":�� ----—
<br />$1,250,302 $993,336-- ---.— _—T_—..
<br />$1,000,000
<br />x•77 - ( , } u .T--_ _i'-
<br />-$1,000,000 FY09 — FY10 _ FYllFY12 FY13--F-Y1J4 F•Y16__ FY�17
<br />-$2,000,000 ----------------- {51,375.479)— ', — tPr�oj) (P. ©j
<br />-$3,000,000 {$2,300,000)
<br />-$4,000,000 ---- -- ---- — --- ($2,763,295) _-
<br />— -- ($31-9001-000)
<br />-$5,000,000 i— — --- _ _ —-------- f
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