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CONSENT <br />INDIAN RIVER COUNTY <br />MEMORANDUM <br />TO: Jason Brown <br />County Administrator <br />FROM: Suzanne Boyll <br />Human Resources Director <br />DATE: August 9, 2016 <br />SUBJECT: Approval of B1ueMedicare Advantage Renewal <br />BACKGROUND: <br />Under Florida Statute, retirees of the County are eligible to continue health insurance under the <br />County's self-insured Group Medical Insurance Program. Beginning in 2008, retirees who attain <br />age 65 are provided the option to enroll in the BlueMedicare Advantage Plan. The Board of <br />County Commissioners approved the current plan at its September 15, 2015 meeting at a monthly <br />premium of $319.92 which was a substantial reduction from the 2014/2015 plan premium of <br />$379.99 per month. Three retirees are currently insured under this plan. The County provides a <br />health insurance subsidy of 54% for one retiree and 60% for two retirees totaling $6,679.93 per <br />year. <br />For the plan year beginning October 1, 2016, staff received a renewal evaluation reflecting an <br />increase in the monthly premium to $402.01 which is an increase of 25.7%. Staff requested <br />additional renewal alternatives to this increase and was provided Alternative 1 and Alternative 2 <br />(attached). Staff also requested if there were other plan options available in the market place. <br />ANALYSIS: <br />A breakdown of the increase in the annual subsidy for each renewal proposal is listed below: <br />Option <br />Monthly <br />Premium <br />Annual IRC <br />Subsidy <br />Increased <br />Subsidy Amount <br />Percent <br />Current <br />$319.92 <br />$6,679.93 <br />n/a <br />n/a <br />Renewal <br />$402.01 <br />$8,393.97 <br />$1,714.04 <br />25.70/) <br />14.3% <br />Alternative 1 <br />$365.54 <br />$7,632.48 <br />$952.55 <br />$211.93 <br />Alternative 2 <br />$330.07 <br />$6,891.86 <br />3.2% <br />While Alternative 2 provides the lowest monthly premium, it includes increased out-of-pocket <br />maximums (from $1,000/$2,000 to $2,000/$4,000) and increased copays (currently ranging from <br />$10 to $150 increasing to $20 to $250). Alternative 2 also includes a reduced pharmacy benefit <br />and eliminates the incentive for mail order prescriptions. <br />Alternative 1 is a blend of the Alternative 2 medical benefit and the Current pharmacy benefit. <br />Under this alternative retirees will have increased out-of-pocket maximums and copays for <br />medical services, but will retain the current pharmacy benefit. In an effort to share in the impact <br />of the increase costs between the County and eligible retirees, staff believes Alternative 1 to be the <br />154 <br />