HomeMy WebLinkAboutResolutions - 2024.09.05 - 41459
AGENDA ITEM: Benefit Plan Modifications Effective January 1, 2025
DEPARTMENT: Human Resources
MEETING: Board of Commissioners
DATE: Thursday, September 5, 2024 9:42 PM - Click to View Agenda
ITEM SUMMARY SHEET
COMMITTEE REPORT TO BOARD
Resolution #2024-4400
Motion to adopt the following modifications to county benefits plans effective January 1, 2025:
• Increase prescription co-pay to $10/$30/$50
• Align the prescription formulary with provider standard, eliminating the "grandfathered drugs"
list
• Begin removing 26-year-old dependents at the end of their birth month versus at the end of
the calendar year;
further, to approve the cost of implementing these additions, which has been included in the
proposed Fiscal Year 2025 Fringe Benefit Fund appropriation.
ITEM CATEGORY SPONSORED BY
Resolution Brendan Johnson
INTRODUCTION AND BACKGROUND
The Human Resources Department is requesting approval to implement certain modifications to
county benefits programs. Seven (7) collective bargaining agreements currently contain language to
adopt these changes. The remaining two (2) collective bargaining agreements are in negotiations
and will come before the Board of Commissioners for approval.
In 2021, the Board of Commissioners was presented with a five-year strategic benefit plan that
provides for modifications to county benefits over time. The Human Resources Department requests
approval to implement the following modifications effective 01/01/2025:
• Increase prescription co-pay to $10/$30/$50
• Align the prescription formulary with provider standard, eliminating the "grandfathered drugs"
list
• Begin removing 26-year-old dependents at the end of their birth month versus at the end of
the calendar year
Here is the link for the document that was provided back in October of 2021:
https://oaklandcomi.v8.civicclerk.com/Meetings/Agenda/ItemFiles?id=4803
POLICY ANALYSIS
The Human Resources Department is requesting approval to modify employee benefit plans,
effective January 1, 2025, as follows:
• increase prescription co-pays to $10 for generic; $30 for formulary and $50 for non-formulary.
• Eliminate the grandfathered drug list by aligning the formulary prescription list to provider
standard
• Begin removing 26 year-old dependents from insurance at the end of their birth month
These proposals are part of the County's 5-year plan to support cost savings. You can review more
information about the strategic 5-year plan in the attached presentation which will be given at
today's meeting.
BUDGET AMENDMENT REQUIRED: No
Committee members can contact Barbara Winter, Policy and Fiscal Analysis Supervisor at
248.821.3065 or winterb@oakgov.com or the department contact persons listed for additional
information.
CONTACT
Heather Van Poucker
ITEM REVIEW TRACKING
Aaron Snover, Board of Commissioners Created/Initiated - 9/5/2024
AGENDA DEADLINE: 09/15/2024 9:42 PM
ATTACHMENTS
1. FY 2025 Benefits changes 2
COMMITTEE TRACKING
2024-08-20 Legislative Affairs and Government Operations - Recommend to Board
2024-09-05 Full Board - Adopt
Motioned by: Commissioner Brendan Johnson
Seconded by: Commissioner Linnie Taylor
Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Kristen
Nelson, Christine Long, Philip Weipert, Gwen Markham, Marcia Gershenson, Yolanda Smith
Charles, Brendan Johnson, Ajay Raman, Ann Erickson Gault, Linnie Taylor (15)
No: Angela Powell, Charles Cavell (2)
Abstain: None (0)
Absent: William Miller III, Robert Hoffman (2)
Passed
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
Brendan Johnson, Chairperson of the Legislative Affairs and Government Operations Committee
FROM: Sunil Asija, Director of Human Resources
Heather Van Poucker, Deputy Director of Human Resources
RE: Benefit Plan Modifications Effective 1/1/25
DATE: August 5, 2024
PREVIOUSLY PLANNED BENEFIT MODIFICATIONS
The Board of Commissioners previously received a five-year strategic benefits plan (summary attached) that
provides for modifications the county benefits program over time. We request approval from the board to
implement the following modifications for all non-union employees effective 1/1/2025 as laid out in the five-year
plan.
1. Implementing prescription co-pay increase to $10/$30/$50 effective 1/1/2025.
2. Internal Control Change: aligning prescription formulary with provider standard (no longer utilizing the
“grandfathered drugs” list.)
3. Internal Control Change: removing 26-year-old dependents at the end of their birth month versus at the
end of the calendar year.
NOTE: All but two union contracts currently contain language permitting these changes. Labor Relations sent
notification of these implementation items on 7/26/24. No further action is needed related to those contracts.
Two contracts are in negotiations and will come before the board for approval prior to 10/1/24.
Attachments: 5 Year Benefits Road Map