Manatee County Government Administrative Center Commission Chambers, First Floor 9:00 a.m. - October 10, 2017
REVISED October 10, 2017 - Regular Meeting
Agenda Item #31

2018 Medical and Dental Premiums Active and Retiree-Employee Health Benefit


Contact and/or Presenter Information
Kim Stroud, x6432

Action Requested
Approval of the 2018 Medical and Dental Premiums for employees and retirees of Manatee County Government and participating agencies.  

Enabling/Regulating Authority


Background Discussion

Medical, Pharmacy, and Dental Plans
Annually, in conjunction with the new budget, the County Commission establishes medical and dental premium rates for the self-funded health plan.  The medical plan has performed remarkably well over the last 7+ years in comparison to national and state trends, so the Commission has not had to shift cost increases to employees via higher premiums, higher deductibles, or reduced coverage.  However, as it has been described to the Commission in previous discussions, the health issues associated with the aging population of our employee base, inflationary cost increases in medicine, costs associated with specialty medications, and an increase in chronic conditions in our younger population created a slight trend increase in our healthcare expense.  Accordingly, in 2016, the Commission approved a 3.2% increase in the premium for the 2017 plan year, all of which was absorbed by the employer. 

Our contracted actuarial consultants recently assessed the experience of the self-funded health plan and has projected an increase of 8.2% in our medical trend for FY18.  As a result of our actual experience over the last two years, as well as an effort to be proactive as healthcare inflation and industry procurement and utilization models continue to increase our costs, the recommendation for the 2018 plan year is a 7% premium increase for all tiers for both the employer and the employee. 

There is no recommendation for a dental premium increase for the 2018 plan year and no recommendation to alter the Prescription benefit plan for 2018.

Exhibit A outlines the recommended medical, dental, flexible spending and administrative rates for 2018. Exhibit B outlines the continuing prescription benefit for 2018.

Retiree Medical Options
Under 65 retirees are eligible for the County's self-funded health plan.  Due to the increase in the self-funded plan as described above, the retirees enrolled in this plan will see an increase as well.  However, the County subsidy for those retirees eligible will remain the same as it was in place for 2017. 

Retirees over 65 are eligible for the County's self-funded plan, a Group Medicare Supplement with Group Part D Prescription coverage and a Private Individual Medicare Exchange option with a Health Reimbursement Account.  Retirees eligible for a subsidy from the County will not see an increase in their premium for the group Medicare Supplement or a reduction in their County Subsidy for the Individual Exchange.  Exhibit C outlines the various plans and associated tiers of coverage for the Retiree's of Manatee County Government and the premiums/subsidies for 2018.  

As has been outlined to the Board, the Employee Benefits Division, along with Financial Management, will continue to monitor the performance of the plan and will continue working towards strategies that will protect the solvency of the plan while also providing a highly desirable and effective health plan that ultimately supports employees' overall well-being.

County Attorney Review
Not Reviewed (No apparent legal issues)

Explanation of Other

Reviewing Attorney

Instructions to Board Records
Please email approved agenda item to Kim Stroud at kim.stroud@mymanatee.org.

Cost and Funds Source Account Number and Name

Amount and Frequency of Recurring Costs

Attachment:  Exhibit A-2018 Active Medical, Dental, Flex Cobra Premiums.pdf
Attachment:  Exhibit B-2018 Prescription Benefit.pdf
Attachment:  Exhibit C-2018 Retiree Premiums.pdf