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  Regular Agenda Item     4. G.    
Regular BOS Meeting
Meeting Date: 03/24/2020  
Submitted By: Jacque Sanders, Deputy County Manager/Librarian
Department: Deputy County Mgr/Library District  
Fiscal Year: 2021 Budgeted?: Yes
Contract Dates
Begin & End:
July 1, 2010-June 30, 2021 Grant?: No
Matching
Requirement?:
No
Fund?: Renewal

Information
Request/Subject
Establish employee contribution rates for employee and family coverage for FY 2021 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 2017, the total cost of the health insurance premiums increased approximately 5.66%.  In FY 2018, there was no increase in premiums; however, there was an increase in medical deductibles and co-pays. In FY 2019, there was a 10% increase in premiums, and in FY20 there was a 6% increase in premiums to cover the rising cost of claims to the AZLGEBT.

For FY2021, there will be no increase to premiums and no increases in medical deductibles or co-pays.
Evaluation
For FY21, there will be no increase to premiums and administration for all member counties in the AZLGEBT.

Once again, open enrollment for the AZLGEBT plan will take place in May and will be a ''passive enrollment" utilizing the web portal.  Employees who wish to change their benefit 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.

Other coverage changes are as follows:
  • Dental coverage increase annual maximum from $1,750 to $2,000
  • Life - transition from Mutual of Omaha to Securian- with a one time Voluntary Term Life opportunity during Open Enrollment (details on attachment).
  • Wellness Program will transition from Fitbit to MoveSpring for activity challenges, and transition from Sweet Savings Diabetes to Livongo for diabetes management, pre-disease management and hypertension management
No changes in deductibles or medical and prescription co-pays.

Staff from Erin Collins and Associates (ECA) will be on site in Gila County on April 22nd in Payson and April 23rd in Globe for presentations prior to open enrollment to meet with employees and answer questions.

In addition, there will be onsite Health Fair Days for employees on May 6th in Payson and May 7th in Globe. Representatives from the various vendors and HR will be providing information and answering 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.
Recommendation
Staff recommends the following for FY 2021:
  • No increase to insurance premiums.  Combined rates will remain flat for a total of $81.50 per month for employee only coverage, and $374.50 per month for family coverage, with a continuation of the $20 per month discount for all employees who participate in the annual HRA.
  • 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.
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, 2020, as follows:  Adopt Schedule A - Employee Insurance Contributions FY 2021 attached to this agenda item.  (Jacque Sanders)

Attachments
Schedule A Employee Insurance Contributions FY2021
AZLGEBT Summary Changes FY2021

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