HomeMy WebLinkAboutResolutions - 2006.05.25 - 28260May 25, 2006
MISCELLANEOUS RESOLUTION (MISC. 106114)
BY: PERSONNEL COMMITTEE — GREG JAMIAN, CHAIRPERSON
IN RE: HUMAN RESOURCES - MODIFICATIONS TO EMPLOYEE AND RETIREE
MEDICAL PLANS
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS over the past several years the cost of medical care has been increasing at
significant rates nationwide; and
WHEREAS Oakland County has been proactive in making incremental changes to the
benefit and retirement plans for County employees and retirees over time; and
WHEREAS while these changes have placed Oakland County ahead of most other
municipalities in the effort to control costs, the rising costs of health care and retiree health care
obligations continue to outpace the impact of these changes creating budgetary pressure that
must be continually monitored and addressed; and
WHEREAS the vast majority of Oakland County's current health care programs are self-
funded which means the County pays for the actual claims incurred; and
WHEREAS Oakland County has experienced a compound annual growth rate in claims
paid of 9.2% from 2001 to 2004 and 12.7% from 2004 to 2005; and
WHEREAS the County's financial obligation to pre-fund retirement health care has
nearly doubled over the course of the past 3 years; and
WHEREAS in keeping with our effort to make incremental changes over time and
considering a significant change was made to the new hire benefit package in January, 2006
(Retirement Health Savings Account introduced for new hires), the County Executive is
proposing a modest change to active and retiree health care plans consistent with the attached
proposal; and
WHEREAS the Master Medical deductible will rise from $100/$200 (single/family) to
$200/$400 (single/family), and the office visit co-pay will rise from $10 to $20 for all Blue
Cross/Blue Shield plans (that provide for an office visit co-pay) and for Health Alliance Plan
(HAP), and the emergency room visit co-pay for HAP will rise to $25; and
WHEREAS the proposed changes will equalize the three tiered prescription co-payment
for active employees and retirees; and
WHEREAS employee bi-weekly contributions for calendar year 2007 will remain at
current levels under this proposal.
Personnel Committee Vote:
Motion carried on a roll call vote:
Jamian, Middleton, Moss, Patterson, Rogers, Scott, Suarez and Nash — yes
Hatchett — no
Coleman — absent
NOW THEREFORE BE IT RESOLVED the Oakland County Board of Commissioners
authorizes the following modifications to the medical and prescription drug plans for active
employees and retirees:
Increase the Master Medical deductible to $200 single/ $400 family for the Blue
Cross/Blue Shield Plan Traditional Plan and the Blue Preferred Plan (PPO).
Increase the office visit co-pay to $20 for the Blue Preferred Plan (PPO), Blue Choice
Plan (POS), and Health Alliance Plan (HAP).
Increase the HAP emergency room visit co-pay to $25.
Modify the three tier prescription drug co-payment plan for all retirees to reflect the
same rates paid by active employees ($5 generic, $10 brand name, and $25 non-
formulary brand name).
BE IT FURTHER RESOLVED that these proposed changes apply to all non-represented
employees, represented employees whose bargaining agreement provides for these changes and
for all retirees effective January 1, 2007.
Chairperson, on behalf of the Personnel Committee, I move the adoption of the foregoing
resolution.
FISCAL NOTE (MISC. 106114) May 25, 2006
BY: FINANCE COMMITTEE - CHUCK MOSS, CHAIRPERSON
IN RE: MODIFICATIONS TO EMPLOYEE AND RETIREE MEDICAL PLANS
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
Pursuant to Rule XII-C of this Board, the Finance Committee has
reviewed the above referenced resolution and finds:
1. The County Executive has proposed a modification to the
medical and prescription drug plans for active employees
and retirees.
2. The proposal includes an increase in the Master Medical
Deductible to $200 single/$400 family for Blue Cross/Blue
Shield Flan, Traditional Plan and Blue Preferred Plan
(FPO); increase office visit co-pay to $20 for Blue
Preferred Plan (PPO), Blue Choice Plan (POS) and Health
Alliance Plan (HAP); increase the HAP emergency room visit
co-pay to $25; and modify the three tier prescription drug
co-payment plan for all retirees to reflect the same rates
paid by active employees ($5 generic, $10 brand name, $25
non-fomulary brand name).
3. The proposed changes apply to all non-represented
employees, represented employees whose bargaining agreement
provides for these changes and all retirees, effective
January 1, 2007.
4. The proposed changes will result in a change to the Fringe
Benefit rates, which will be incorporated with the FY 2007
and FY 2008 budget during the budget process.
5. No budget amendment is necessary at this time.
FINANCE COMMITTEE
FINANCE COMMITTEE
Ayes: Palmer, Wilson, Jamian, Long, Rogers, Moss
Nays: Melton, Crawford, Coulter, Zack, Woodward
Resolution #06114
Moved by Jamian supported by Moss the resolution (with fiscal note attached) be adopted.
Discussion followed.
May 25, 2006
Vote on resolution:
AYES: Douglas, Jamian, KowaII, Long, Middleton, Molnar, Moss, Palmer, Patterson, Potter,
Rogers, Scott, Wilson, Bullard, Crawford. (15)
NAYS: Gershenson, Gregory, Hatchett, Melton, Nash, Suarez, Woodward, Zack, Coleman,
Coulter. (10)
A sufficient majority having voted in favor, the resolution (with fiscal note attached) was adopted.
,11!••
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Ruth Johnson, Clerk of the County of Oakland, do hereby certify that the foregoing re
accurate copy of a resolution adopted by the Oakland County Board of Commissioners on
the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of theCQunly.of
Michigan this 25th day of May, 2006.
ution is a true and
May 25, 2006, with
akland at Pontiac,
Ruth Johnson, County Clerk