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Agenda Item #25
Approval of the 2021 Medical, Dental, and Retiree Premium Cost Sharing
Contact and/or Presenter Information
Health Benefits Manager, x6432
Approval of the 2021 Medical, Dental, and Retiree cost sharing for the self funded and fully insured employer sponsored benefits, Exhibits A and B.
Annually, in conjunction with the new budget, the County Commission establishes premium cost sharing rates for the self-funded health plan and the retiree health plan options as well as confirms the voluntary plan options available to employees and retirees.
YourChoice Health Plan-Active Employee Medical
The Board approved a 4% premium increase for Plan Year 2021.
While the plan continues to experience a lower trend increase than similarly situated self-funded health plans, the performance of the plan is being impacted by the rising cost of healthcare and pharmaceuticals, mostly attributed to high cost claimants and expensive specialty medications. To offset the increase of these expenses, the Board approved a 4% increase in premiums, which would continue to promote a sound medical plan. However, with the budget approval, the Board supported a one-time credit for employees enrolled in the plan on 1/1/2021. The credit will amount to the difference between the current premium cost and the 2021 premium cost.
Dental Coverage-Active and Retiree
The dental plan offered to employees and retirees is fully funded by the participants of the plan. Due to the plan's performance and projections for 2021, the premiums for the dental plan will remain stable for 2021.
Vision Coverage-Active and Retiree
The County offers a fully insured vision plan that is fully funded by the employees and retirees and the premium rates for that voluntary option are remaining stable for 2021.
Exhibit A is reflective of the recommended medical premiums for Calendar Year 2021 which reflects the cost sharing for employees and the employer. Additionally, Exhibit A reflects the employee paid dental premiums, the fully insured vision plan premium, as well as the employee paid flexible spending account and administrative fees and COBRA Premiums for 2021.
Medical Plan Options-Retiree
Eligible Retirees of Manatee County Government and participating constitutional agencies can participate in 2 different plan options based upon their age.
The YourChoice Health Plan is an option for both under and over age 65 Retirees. It offers the same plan and coverage to retirees as it does for the active members of the plan; however, when in retiree status, the retiree pays a higher portion of the premium. When the overall premium for the self funded plan increases, the increase is passed along to the retiree. The County does offer a cost sharing to retirees who have 10+years of experience with the County or a participating agency and that subsidy will remain stable at $129/month. Aside from the 4% increase in premium, the only change in this retiree plan option is the decrease in the county subsidy offered for the family tier. For many years, the County only offered a subsidy for the retiree and there was no subsidy provided for family coverage. However, as a result of the introduction of the 4 tiers in 2016, the County added in a subsidy to help mitigate the increase in the family tier for our retirees. Since then, the intention has been to slowly return to a zero subsidy for the retiree family tier; as of 2021, the family tier subsidy will be completely removed.
Transamerica Medicare Supplement is a fully insured option for our post 65 retirees and is our plan offering that has the most enrollment as it is the most affordable for our over 65 retirees. This plan has been extremely stable with little to no increases for several years while providing comprehensive coverage; however, due to federal changes in Medicare Billing, most Medicare supplement plans are experiencing increases for 2021. Retirees in this fully-insured plan will experience a 7.5% increase in their premium. The County provides a variable subsidy in this plan to retirees who have been with the County for 10+ years. The value of the subsidy is reflective of the retiree's age and location and averages around $82/month.
Exhibit B outlines the recommended 2021 Retiree Medical Premium options and associated cost sharing.
County Attorney Review
Not Reviewed (No apparent legal issues)
Explanation of Other
Instructions to Board Records
Please provide a copy of the approved agenda to Lesli Strickland at email@example.com and Angela Sain at Angela.Sain@mymanatee.org.
Cost and Funds Source Account Number and Name
Amount and Frequency of Recurring Costs
Attachment: Exhibit A- 2021 Med Dental Fees Active-Cobra.pdf
Attachment: Exhibit B- 2021 Retiree Rates.pdf