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Employer Increased Contribution for Both Silver & Gold - $40/$80 $1,256,160 Option 3 Employee Increased Contribution Gold Only - $40/$80 $1,054,080 Option 3 $2,310,240 Staff Summary Current funding for the health plan is provided by employer, employee and retiree contributions to the plan as well as OPEB funding. Current funding is not sufficient to keep up with rising health care costs and high cost claims. Plan design and premium contribution changes need to be made to adequately fund this important benefit. There was no clear consensus expressed at the employee Zoom meeting regarding how to distribute the additional $250K in additional employee funding or plan design changes. The Sheriff's union expressed support of obtaining additional funding through increasing employee premiums under the Premier Silver Plan (Premium Contribution Option 1 above). The Teamsters union does not support an employee increase for the Premier Silver Plan and supports Plan Design Option 2 and Premium Contribution B. There was no input received from the IAFF union. Staff is recommending funding requirements with the associated plan design change totaling $213K identified as Plan Design Option B above. The required additional required funding is $2,856,678. To provide adequate funding for Plan Design Option B, an additional $2,856,678 is needed. Staff is recommending Premium Contribution Option 3 above which provides an amount of funding that most closely meets the projected needs. Option 3 increases the employer contribution in the amount of $1,256,160 for both the Premier Silver and Premier Gold plans by $40 for single and $80 for family coverage. Based on plan experience, staff is recommending an increase in only the Premier Gold Plan employee premium contribution by $40 for single and $80 for family coverage. This provides $1,054,080 in additional funding. Staff recommends NO increase in the Premier Silver employee premium contribution because the Premier Silver Plan is performing well. The total increased contribution from both the employer and employee would provide additional funding of $2,310,240. The remaining projected shortfall of $546,438 would be funded from the insurance trust balance. Option 3B— FY20/21 Option 3B Monthly Premium Current Employee Premium Option 3B Employee Premium Current Employer Premium Option 3B Employer Premium Premier Silver Employee $715.00 $15.00 $15.00 $660.00 $700.00 Premier Silver Family $1362.50 $207.50 $207.50 $1025.00 $1105.00 Option 3B — FY 20/21 Option 38 Monthly Premium Current Employee Premium Option 38 Employee Premium Current Employer Premium Option 3B Employer Premium Premier Gold Employee $825.00 $85.00 $125.00 $660.00 $700.00 Premier Gold Family $1535.00 $350.00 ; $430.00 $1025.00 $1105.00 71