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Home My WebLink AboutEBAC - Health Benefits ChangesDeschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701 -1960 (541) 388 -6570 - Fax (541) 385 -3202 - www.deschutes.org, AGENDA REQUEST & STAFF REPORT For Board Business Meeting of July 22, 2009 Please see directions for completing this document on the next page. DATE: 07/10/09 FROM: Ronda Connor Personnel 385 -3215 TITLE OF AGENDA ITEM: Consideration of Board approval of EBAC recommended changes to the health benefits. PUBLIC HEARING ON THIS DATE? No BACKGROUND AND POLICY IMPLICATIONS: Each year, in advance of the plan renewal the health benefits Renewal Committee and EBAC meet to analyze our current benefit structure, state and federal requirements, benefits trends, and requests from employees. Our health plan insures approximately 2,500 people. We provide a comprehensive benefit package of Medical, Dental, Vision, Prescription and Alternative Care coverage. Below is a listing of the items that are recommended by EBAC. Adding coverage for nitrous oxide during dental procedures. This is a current exclusion. Parents have requested this for their children who are overly anxious about seeking treatment from their dentist. Estimated Cost: This treatment ranges from about $40 -$60 per treatment and is used sparingly. This would apply to the $2,000 maximum on the dental benefit. Add Tobacco Cessation benefit Currently we have a limited prescription benefit for tobacco cessation, but no coverage for office visits, counseling or over the counter medications. This benefit includes counseling, OTC and prescription medications to assist the person in quitting tobacco. Through a survey, it was determined that we have approximately 350 tobacco users on our health plan. Both the renewal committee and EBAC recommend the addition of this benefit. Estimated Cost: Year one fixed cost is $6,250 to pre -pay the first ten participants. Each participant thereafter would cost $375. Cover colonoscopies and EBTs at 100% Currently the colonoscopy and EBT benefit is 80/20; no deductible applies. Estimated Cost: Had this recommended benefit structure been in place for the current plan year. the plan would have incurred an additional $60,000 in expenses. Add a bariatric surgery benefit. - -Note at the time of this agenda request submission, this benefit has been recommended by the EBAC renewal committee and has not yet been presented to EBAC. It is on the 07/21/09 EBAC agenda for review. Currently this is specifically excluded in our plan. The proposed benefit is a $50,000 per individual lifetime maximum to include the determination of candidacy, pre- surgical workup, the surgical procedure, facility costs, complications and secondary procedures. Estimated Cost: As an estimate of three enrollees taking advantage of this benefit, the plan would incur an additional $150,000 in expenses. Change Stop Loss Carriers - -Note at the time of this agenda request submission, this benefit has been recommended by the EBAC renewal committee and has not yet been presented to EBAC. It is on the 07/21/09 EBAC agenda for review. Deschutes County has partnered with HCC Life since we began self - funding in 2000. We have generally had favorable renewals with them. This renewal process resulted in HCC life putting additional liability on the County in three instances of gravely ill individuals who will incur extraordinary expenses. Zurich, a stop loss carrier specializing in local governments and schools t,ave a very competitive quote with no additional burden on the County. The net impact from our current stop loss expenses to the Zurich's quote is an increase of $5,832 annually. Our current stop loss pe employee per month is $31.46 and the Zurich quote is $31.96 per employee per month. FISCAL IMPLICATIONS: Given the sum of these benefit changes, and estimates of the frequency of enrollees accessing these. benefits, it is estimated that an additional $223,000 in expenses could potentially be incurred. RECOMMENDATION & ACTION REQUESTED: Consideration of approval of EBAC receommendations ATTENDANCE: Ronda Connor DISTRIBUTION OF DOCUMENTS: