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Regular Agenda Item 3. K.
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| Regular BOS Meeting |
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| Information |
| Request/Subject |
| Establish employee contribution rates for employee and family coverage for FY 2022 for Arizona Local Government Employee Benefit Trust (AZLGEBT) plans. |
| Background Information |
Gila County joined the AZLGEBT on July 1, 1999. The AZLGEBT provides medical, prescription, dental, vision, disability, and life insurance coverage, as well as a wellness program for eligible Gila County employees and dependents. Over the past 22 years, there have been various changes and modifications to the plan and to the County’s responsibility for administering the plan. Changes in federal law along with increasing costs associated with changes in the industry, limited options in rural Arizona, and specialty medications will continue to add layers of complexity to our administration of our self-insured trust.
In FY 2015, the AZLGEBT added a High Deductible Health Plan (HDHP), Health Savings Accounts (HSAs), and a buy-up dental plan. In FY 2016, AZLGEBT added a Flexible Spending Account (FSA) option to the plan. In FY 2021 there was no increase to premiums and no increases in medical deductibles or co-pays.
For FY2022, there will be a 2% increase to premiums, which will result in a $3.00 per month increase in single coverage premiums for employees and a $5.70 per month increase for family coverage premiums for employees. There will be no increases in medical deductibles or co-pays. |
| Evaluation |
For FY22, there is a 2% increase to premiums and administration for all member counties in the AZLGEBT.
Once again, open enrollment for the AZLGEBT plan will take place May 1 through 21,2021 and will be a ''passive enrollment" utilizing the web portal. Employees who wish to change their benefits selections or add other options will be able to make those changes during open enrollment. The Human Resources (HR) Department will be providing information to all benefit-eligible employees about open enrollment.
No changes in deductibles or medical and prescription co-pays. No changes to any other offerings or benefits.
Staff from Erin Collins and Associates (ECA) will be presenting via Zoom in Gila County on April 28th and May 5th for open enrollment to meet with employees and answer questions. |
| Conclusion |
Currently, the County subsidizes the premium costs at approximately 90% for single coverage and 75% for family coverage when the employee chooses to participate in the annual Health Risk Assessment (HRA). Without HRA participation, the County subsidizes the premium costs at 87% for single coverage and 74% for family coverage.
Because of the issues related to COVID-19 interrupting the HRA events, this year all insured employees will be receiving the additional HRA premium subsidy of $20 per month. |
| Recommendation |
Staff recommends the following for FY 2021:
- Medical rates will increase by $3.00 for a total for combined medical, vision, and dental coverage of $84.50 per month for employee-only coverage, and increase $5.70 for a combined medical, vision, and dental coverage total of $380.20 per month for family coverage, with a continuation of the $20 per month discount for all employees.
- Reconfirm the Gila County base contribution rates for the HSA system at $10 per month for single coverage and $25 per month for family coverage.
- Reconfirm the dollar-for-dollar matching contribution into the HSA system up to an additional $40 per month for single employee coverage and $75 per month for family coverage.
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| Suggested Motion |
| Information/Discussion/Action regarding premium rates in the Arizona Local Government Employee Benefit Trust for Gila County's employee insurance and benefit plans to be effective as of July 1, 2021, as follows: Adopt Schedule A - Employee Insurance Contributions FY 2022 attached to this agenda item. (Jacque Sanders) |
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