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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: July 12, 2017 <br />SUBJECT: Approval of Blue Medicare Advantage Renewal <br />N <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 Blue Medicare Advantage Plan. The Board of <br />County Commissioners approved the current Blue Medicare Group PPO 2 RX 1 plan at its <br />August 16, 2016 meeting at a monthly premium of $365.54. This plan provided the lowest <br />monthly premiums and increased out-of-pocket maximums (from $1,000/$2,000 to <br />$2,000/$4,000) and increased copays (currently ranging from $10 to $150 increasing to $20 to <br />$250). Three retirees are insured under this plan. The County provides a health insurance <br />subsidy of 54% for one retiree and 60% for two retirees totaling $7,632.48 per year. <br />Staff received a renewal evaluation for the plan year beginning October 1, 2017, reflecting a <br />slight decrease of 0.4% in the monthly premium from $365.54 to $363.97. Staff was also <br />provided two additional renewal alternatives for consideration. See attached Alternative #1 <br />and Alternative #2. <br />Alternative #1 is a 10.6% decrease in premiums and includes a prescription deductible of $75 <br />for brand drugs as well as increases pharmacy copays (from $10/$40/$70 to $15/$45/$85). <br />Alternative #2 is an increase of 8.7%. This the plan that was in place prior to the current plan. <br />This alternative has reduced out-of-pocket maximums (from $2,000 to $1,000) and reduced <br />copays (currently ranging from $20 to $250 and reducing to $10 to $150). <br />FINANCIAL IMPACT: <br />A breakdown of the change in the annual subsidv for each renewal DroDosal is listed below: <br />Option <br />Monthly <br />Premium <br />Annual IRC <br />Subsidy <br />Increased <br />Subsidy Amount <br />Percent <br />Current PPO 2 RX 1 <br />$365.54 <br />$7,632.48 <br />n/a <br />n/a <br />Renewal PPO 2 RX 1 <br />$363.97 <br />$7,599.69 <br />($32.78) <br />-0.4% <br />Alternative 1 PPO 2 RX 2 <br />$326.64 <br />$6,826.51 <br />($805.97) <br />-10.6% <br />Alternative 2 PPO 1 RX 1 <br />$397.46 <br />$8,298.96 <br />$666.49 <br />8.7% <br />P75 <br />