The URL can be used to link to this page

Home My WebLink AboutReports - 2023.06.15 - 38263 AGENDA ITEM: Recommendation for Medical and Prescription Benefit Coverage for Non- Represented Employees DEPARTMENT: Human Resources MEETING: Board of Commissioners DATE: Thursday, June 15, 2023 7:00 PM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2023-3030 Motion to approve the medical and prescription benefit coverage plans for non-represented employees as identified in Schedule A, effective January 1, 2024. ITEM CATEGORY SPONSORED BY Resolution Gary McGillivray INTRODUCTION AND BACKGROUND Oakland County has an IRS Section 125 Cafeteria Plan for employee benefits, which is administered by the County Executive / Human Resources Department. Medical and prescription contracts were due for the request for proposal bid processes. The bid process resulted in the recommendation to proceed with the proposed medical and prescription benefit coverage to be contracted with Blue Cross Blue Shield. The plan designs, effective January 1, 2024, would be applied as identified in Schedule A. The modifications proposed to the plans have no budget impact. The Human Resources Department will work with union leadership to ascertain represented employees’ interest in pursuing a letter of agreement to adopt the plan designs identified in Schedule A. Background: Employees are currently provided with the following plans with noted carrier options for medical coverage and Navitus for prescription coverage: • PPO1 with ASR with Flexible Spending Account Option • PPO2 with BCBS with Flexible Spending Account Option • PPO3 with ASR with Flexible Spending Account Option • HMO with HAP with Flexible Spending Account Option • Grandfathered (BCBS Plan, no new enrollments) POLICY ANALYSIS The proposed plans are for non-represented employees. The goal of the HR Department is to secure Letters of Agreement from those unions who wish to adopt the new plan options by August 1st so they can effectively deliver educational/informational opportunities to employees about the new plans. If a union does not sign a Letter of Agreement prior to Open Enrollment, those employees will have the choice of PPO1 or PPO2, which will not change in design or cost, just provider (PPO1 changes from ASR to BCBS.) The contract term with BCBS is 3 years. The contract is estimated to be cost-neutral based on no changes to plan design. BUDGET AMENDMENT REQUIRED: No Committee members can contact Michael Andrews, Policy and Fiscal Analysis Supervisor at 248.425.5572 or andrewsmb@oakgov.com, or the department contact persons listed for additional information. CONTACT Heather Van Poucker Stephanie Bedricky ITEM REVIEW TRACKING Gary McGillivray, Board of Commissioners Created/Initiated - 6/15/2023 AGENDA DEADLINE: 06/25/2023 7:00 PM ATTACHMENTS 1. HR - Benefits SCHEDULE A 2. HR - BenefitsMemo 3. Board Presentation HR Benefits June 2023 COMMITTEE TRACKING 2023-06-06 Legislative Affairs & Government Operations - Recommend to Board 2023-06-15 Full Board - Approve Motioned by: Commissioner Robert Hoffman Seconded by: Commissioner Angela Powell Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Kristen Nelson, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson, Janet Jackson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson (17) No: None (0) Abstain: None (0) Absent: Ajay Raman, Gary McGillivray (2) Passed *Only plan design change is HMO Employee cost share reduced to align with former PPO3 option. SCHEDULE A: HEALTHCARE AND PRESCRIPTION (Rx) PLANS ADMINISTERED BY BLUE CROSS BLUE SHIELD RETAINED PLAN DESIGNS MODIFIED PLAN NEW PLAN CLOSED COST (PRE-TAXED) PPO1 PPO2 HMO HDHP TRADITIONAL Bi-Weekly Employee $42 $52 $26 $10 $62 Bi-Weekly Employee +1 $75 $80 $45 $15 $99 Bi-Weekly Family $85 $95 $55 $25 $104 Annual Employee $1,092 $1,352 $676 $260 $1,612 Annual Employee + 1 $1,950 $2,080 $1,170 $390 $2,574 Annual Family $2,210 $2,470 $1,430 $650 $2,704 DEDUCTIBLES NOTE: ALL PLANS INCLUDING HDHP provide preventive care like annual physicals, routine prenatal visits, well-child visits, immunizations, routine screenings, and more AT NO COST (no deductible/co-insurance apply) Deductible Employee $200 $100 None $1,600* $200 Deductible Family $400 $200 None $3,200* *Current IRS Minimum *IRS Sets Limits Annually $400 COINSURANCE Coinsurance None for most services. 10% after deductible. 10% after deductible None None 10% after deductible Coinsurance Max $1,000 per person $500 per person $1,000 per family N/A N/A $1,000 per person Annual out of Pocket Max $4,125 per person $10,250 per family $4,125 per person $10,250 per family $6,600 per person $13,200 per family $4,125 per person $10,250 per family $4,125 per person $10,250 per family EMPLOYEE COST SAVINGS OPTIONS Flexible Spending Account (FSA) Employee Funded IRS Max Limits $3,050 employee $7,750 family $3,050 employee $7,750 family $3,050 employee $7,750 family Not applicable $3,050 employee $7,750 family Health Savings Account (HSA) Tiered County Contribution CY 2024 - 2025 Employee retains 100% of HSA funds including County contributions; funds are immediately available and portable upon separation Not applicable Not applicable Not applicable CY 2024 & 2025 Employee +$1,000 Family +$2,000 CY 2026 Employee +$750 Family +$1,500 Not applicable HSA IRS Max Limits Not applicable Not applicable Not applicable $3,850 employee; $7,750 family Not applicable PRESCRIPTION DRUGS (RX) PLAN ADMINISTERED BY OPTUM/BLUE CROSS BLUE SHIELD Tier 1 – RETAINED $5 copay $5 copay $5 copay $5 copay $5 copay Tier 2 – RETAINED $20 copay $20 copay $20 copay $20 copay $20 copay Tier 3 – RETAINED $40 copay $40 copay $40 copay $40 copay $40 copay OAKLAND COUNTY EXECUTIVE DAVID COULTER Sunil Asija, Director Human Resources 2100 Pontiac Lake Road | County Executive Building 41W | Waterford, MI 48328 | OakGov.com TO: David T. Woodward, Chairman of the Board of Commissioners Gary McGillivray, Chairperson of the Legislative Affairs and Government Operations Committee FROM: Sunil Asija, Director of Human Resources Heather Van Poucker, Manager of Benefits and Compensation RE: 2024 Medical and Prescription Provider Selection DATE: May 24, 2023 The Request for Proposals (RFPs) were posted January 31, 2023, in anticipation of medical and prescription contracts expiring 12/31/2023. The process included medical coverage (active employees and pre-65 retirees) and prescription coverage (employees and all retirees) beginning January 1, 2024. Proposals were received from two current providers, ASR and BCBS, as well as from Priority Health and Aetna. It is important to note that retirees post-65 will remain with Trustmark. RFP goals and priorities: ✓ Ensure expansive networks & excellent coverage (including out-of-state) ✓ Preserve affordability and expand options to meet employees’ wide-ranging needs, ✓ Streamline and improve the customer experience, ✓ Enhance reporting, analytics, administrative processes, ✓ Access industry-leading innovations and align with a DEI-driven partner. Recommendations: • Acquire BCBS for medical (employee & pre-65 retirees) and prescription coverage (employee and all retirees) for all plans. • Retain PPO1 and PPO2 without plan modifications. • Retain HMO modified to lower employee bi-weekly contributions to reflect the most affordable current plan, $26/$45/$55 (reduced from $42/$75/$85). • Introduce a High Deductible Health Plan (HDHP) with employee contribution levels of $10/$15/$25 and County contribution to a Health Savings Account (HSA) of $1,000/employee and $2,000/family for CY2024 and CY2025, decreasing to $750/employee and $1,500/family for CY2026. CY2024 savings are anticipated to be $1.3M which will offset the cost of implementing the HDHP plan. These recommendations are budget neutral for CY2024. Future cost increases are reflected within the 3-year budget forecast. Employees will have all four options available to them during open enrollment that will begin in September 2023 and the new BCBS platform will begin on January 1, 2024. The Benefits team has worked closely with the employee Total Rewards Task Force throughout this process. HR/Labor Relations will similarly engage with union representatives to ascertain interest in adopting these additional plans of the HMO and HDHP plan recommendations through letters of agreement. Thank you for your consideration. 2024 Medical/Prescription Preserving Excellence in Employee Benefits •Contracts expiring •RFP Process undertaken early 2023 •Medical: Active & Pre-65 Retirees (Post-65 Retirees no change) •Prescription: Active & All Retirees •Proposals submitted by ASR, BCBS, Priority Health, Aetna •Final Recommendation: BCBS Platform Med/Rx 2 2024 Medical/Prescription §All BCBS Platform §Preserves PPO1 & PPO2 Plan Design §Preserves Plan Design of HMO §Aligns HMO employee contribution with most affordable option in current schedule §Introduces High Deductible plan option Next Steps •Following approval: Extensive employee outreach & education leading up to Fall Open Enrollment •Outreach to unions •“Benefits 101” educational sessions •HDHP + HSA specific training and education •Comprehensive communication strategy •On-site in-person enrollment consultation QUESTIONS? Stephanie Bedricky Benefits Supervisor bedrickys@oakgov.com (248) 520-2779 Heather Van Poucker Manager, Comp/Benefits vanpouckerh@oakgov.com (248) 821-9151 Sunil Asija Director, Human Resources asijas@oakgov.com (248) 464-9332 6