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SUBJECT : Retirees ' Premiums <br /> Staff requests consideration of the following information at the July 17, 2001 , regular meeting of the <br /> Board of County Commissioners. <br /> Background <br /> Last year the Health Insurance Consultant reviewed the county ' s health insurance plan and <br /> recommended that retirees contributions be increased due to the cost of health care increasing at an <br /> annual rate of 8% to 12 % . The Board approved increasing premiums of retirees under age 65 to <br /> equal 100% of total premium paid by the county. The premiums for retirees age 65 and older were <br /> increased to equal 40% of total premium paid by the county. <br /> Due to the escalating cost of health insurance, the total premium paid by the county is increasing for <br /> fiscal year 10/01 /01 - 09/30/02 by approximately 15 %. Therefore, either the county or the retirees <br /> will have to absorb these additional costs. The attached chart reflects current and proposed <br /> premiums for the retirees . <br /> Recommendation <br /> Based on the aforementioned, staff recommends increasing retirees ' premiums applying the same <br /> percentage method as last year. In addition, staff requests Board approval to apply the percentage <br /> method in subsequent years if health insurance costs continue to increase. <br /> Chairman Ginn asked about making an adjustment for those retirees under the age of <br /> 65 , possibly based on the number of years worked . <br /> Commissioner Adams believed we will see a doubling of the insurance costs in the <br /> next 5 to 7 years . <br /> Assistant Administrator Joe Baird stated that the insurance cost to the County is <br /> $ 900 , 000 , with only $ 250 , 000 absorbed by the employees . The County is able to keep the <br /> premiums lower for those retirees who are over the age of 65 because Medicare picks up <br /> their primary insurance coverage . The County is absorbing a great deal of the cost for the <br /> premiums and individuals would not be able to purchase personal insurance for the rates they <br /> are being charged . The main reason retirees over 65 remain in the County ' s insurance plan <br /> is for the prescription benefits . <br /> Chairman Ginn commented that she had a number of calls on these premiums at the <br /> time they were increased and she had requested that the callers come to the budget meetings <br /> and address the Board . However, no one appeared at the budget meetings and she has not <br /> received any further calls . <br /> JULY 179 2001 B PG 0 6 7 <br /> - 16 - <br />