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Regular Agenda Item 4. E.
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| Regular BOS Meeting |
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| Information |
| Request/Subject |
| Establish employee contribution rates for employee and family coverage for Fiscal Year 2025 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 25 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 the 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 22 ,there was a 2% increase in premiums. In FY 23, there was a 6% increase in premiums. In FY24 there was a 10.71% increase to premiums.
For FY 2024, there was 2.5% increase to premiums, which resulted in a $1.75 per month increase in single coverage premiums for employees and a $10.01 per month increase for family coverage premiums for employees. There were no increases in medical deductibles or co-pays. |
| Evaluation |
For FY 2025, there is a 2.5% increase in premiums and administration for all member counties in the AZLGEBT.
Once again, open enrollment for the AZLGEBT plan will take place May 1, 2024, through May 31, 2024. It will be an ACTIVE ENROLLMENT using a new online portal called "Plan Source."
Employees who wish to continue their benefits selections or add other options will be able to make those changes during open enrollment. Enrollers from the Benefit Trust will provide education sessions, digital access to the platforms, and direct client support to Gila County's employees during this ACTIVE ENROLLMENT period.
A flyer will be going out to employees and offices with more information. In addition, the Human Resources (HR) Department will be providing information to all benefit-eligible employees about open enrollment. |
| Conclusion |
Currently, the County subsidizes the premium costs at 90% for single coverage and 76% for family coverage, for FY24 which includes the HRA subsidy.
For FY 2025, staff proposes continuing to subsidize the premium costs at 90% for single coverage and 76% for family coverage.
** Premium Reduction - As a reminder, AZLGEBT no longer ties premium reductions solely to Health Risk Assessment participation.
The "Employee Pays" Portion of premium reflects the $20 per month premium reduction eligibility for Employees registered in the Vitality Wellness Tracker program with Silver status as of 5/31/2024. There are a variety of ways to reach Silver status This information was shared with Employees at the outset of FY24 to ensure ample opportunity to successfully participate in the program. |
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| Recommendation |
Staff recommends the following for FY 2025:
- Medical rates will increase by $1.75 for a total for combined medical, vision, and dental coverage of $76.03 per month for employee-only coverage, and increase $10.01 for a total combined medical, vision and dental coverage of $432.42 per month for family coverage.
- Establish the Gila County base contribution rates for the HSA system (minimum per-employee per-month) at $55 per month for single coverage and $110 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 July 1, 2024, as follows: Adopt Schedule A - Employee Insurance Contributions FY 2025 attached to this agenda item. (Maryn Belling) |
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