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CONSENT INDIAN RIVER COUNTY MEMORANDUM TO: Jason Brown County Administrator FROM: Suzanne Boyll Human Resources Director DATE: June 28, 2019 SUBJECT: Approval of Blue Medicare Advantage Renewal BACKGROUND: Under Florida Statute, retirees of the County are eligible to continue health insurance under the County's self-insured Group Medical Insurance Program. Beginning in 2008, retirees who attain age 65 are provided the option to enroll in the Blue Medicare Advantage Plan. The Board of County Commissioners approved the current Blue Medicare Group PPO 2 RX 1 plan in August 2018 at a monthly premium of $316.55. Two retirees are insured under this plan. The County provides a health insurance subsidy of 54% for one retiree and 60% to the other retiree at an annual cost of $4,330.40 per year. Staff received a renewal evaluation for the plan year beginning October 1, 2019, reflecting a decrease in the monthly premium from $316.55 to $295.11. In order to provide the same level of benefits to covered retirees that results in a premium savings to both the retirees and the County, staff is recommending renewal of the current plan at a monthly premium of $295.11. The retirees' share of the monthly premium would be reduced from $145.61 to $135.75 and $126.62 to $118.04 respectively and maintain current benefit levels. The County's cost would reduce from $4,330.40 to $4,037.16 annually — a savings of 6.77%. FINANCIAL IMPACT: A breakdown of the financial impact of the renewal proposal is listed below: PPO2Rx1 MAP Plan Monthly Premium Annual MAP Premium Annual Retiree Premium Annual IRC Subsidy Current $316.55 $7,597.20 $3,266.76 $4,330.44 Renewal $295.11 $7,082.64 $3,045.48 $4,037.16 $ Change ($21.44) ($514.56) ($221.28) ($293.28) % Change 6.77% 6.77% 6.77% 6.77% 66