To: Board of Supervisors
From: Ann Elliott, Human Resources Director
Report Title: Approve 2025 Rate Renewals for NonPERS Health and Welfare Plans
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
AUTHORIZE the County Administrator, or designee, to approve rates and the County’s contributions for insurance with the NonPERS Medical, Dental, Vision, Computer Vision Care Program and Life Insurance Plan carriers for the period of January 1, 2025 - December 31, 2025.
FISCAL IMPACT:
The premiums for existing DeltaCare HMO and Delta Dental PPO and the VOYA Life Insurance plans will not increase for the 2025 plan year. There is a decrease for the Computer Vision Care and Voluntary Vision plans by approximately 5.00%. The CCHP plan premiums will increase by 6.50%, Health Net SmartCare HMO Plan A and Plan B by 7.51%, Health Net PPO plan by 12.50%, Kaiser Plan A, Plan B, and HDHP will increase by 3.38%, and Teamsters Local 856 Trust Kaiser Plan by 10%.
Premiums for active, retired and survivor enrollees are funded by a combination of charges to County Departments, Special Districts, and employee/retiree/survivor contributions. Projections of the fiscal impact for 2025 are based on 2024 census data with no adjustment for future migration between plans. The 2025 projected total premium cost for active employees is approximately $147.4 million; the projected total premium cost for 2024 is expected to reach $140.0 million by year’s end. The currently negotiated cost to the County is $141.1 million of that total ($134.1 million in 2024).
BACKGROUND:
Insurance coverage is an important benefit and a valuable recruitment and retention tool. To ensure that high quality insurance is available for eligible Contra Costa County employees and retirees, the County offers group Medical, Dental, Life insurance, Voluntary Vision insurance, Computer Vision Vare coverage, as well as Flexible Spending Accounts and Health Savings Accounts on an annual basis with a number of carriers/providers. The County's existing insurance and coverage plans are for the calendar year and expire December 31, 2024.
To assist the County in negotiating the best possible health care terms for active and retired employees, the County contracts with a consultant, who has expertise in public sector employee benefit plan design and rate structure. All medical insurance plans continue to offer essential medical benefits and coverage compliant with the requirements of the Affordable Care Act (ACA).
Beginning January 1, 2025, the County subsidy, for most employees eligible for NonPERS medical plans, will be 80% of the second lowest priced non-deductible HMO plan for all tiers (Employee, Employee +1 and Employee +2 or more). Based on the 2025 proposed rates, CCHP Plan A will be used for subsidy calculations.
|
Coverage Type |
CCHP Plan A Premium |
% _ |
County Subsidy |
|
Employee Only |
$1,262.51 |
80% |
$1010.01 |
|
Employee +1 |
$2,524.98 |
80% |
$2019.99 |
|
Employee +2/More |
$3,787.51 |
80% |
$3030.01 |
To ensure uninterrupted coverage for enrolled members (eligible active employees, retired employees and survivors of retired employees) staff requests authorization from the Board of Supervisors to renew existing insurance coverage at the rates provided in Attachment 1. The chart reflects the different premium structures - either Two Tier or Three Tier - based on what has been negotiated with various bargaining groups. Rate sheets, by bargaining group for actives and retirees, for the 2025 plan year reflecting County subsidies and employee/retiree costs will be available in October, prior to the Open Enrollment period. These rate sheets will be posted on the Employee Benefits website and a sample draft is provided in Attachment 2.
The County continues to provide competitive rates for benefits plans through dedicated persistence and collaboration with Human Resources, the County’s consultant and the Joint Labor Management Benefits Committee (JLMBC). The Delta HMO, Delta PPO, and the Voya Supplemental & Basic Life Insurance plans will not increase in 2025. There is a decrease to the VSP Computer Vision Care (CVC) and Voluntary Vision plans. With the renewals and County subsidy for 2025, approximately 79% of County employees enrolled in NonPERS medical plans will see the same or reduced rate in their monthly contributions and 100% of employees enrolled in the Dental and Vision plans will see the same or reduced rate in their monthly contributions.
The County is proud of the collaboration and results achieved with our consultants and the Joint Labor Management Benefits Committee (JLMBC).
CONSEQUENCE OF NEGATIVE ACTION:
To prevent the disruption of services for group benefits that are offered to eligible active employees, retirees, survivors and dependents, it is necessary to accept rate renewals prior to open enrollment which is planned for October 14, 2024 - November 1, 2024, for the 2025 plan year.