To: Board of Supervisors
From: Ann Elliott, Human Resources Director
Report Title: 2024 Rate Renewals for NonPERS Health and Welfare Plans
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, 2024 - December 31, 2024.
FISCAL IMPACT:
The premiums for existing Delta Dental PPO, Computer Vision Care, Voluntary Vision plan and the VOYA Life Insurance plans will not increase for the 2024 plan year. There is a decrease for the DeltaCare HMO plan by 4.65%. The CCHP plan premiums will increase by 7.52%, Health Net SmartCare HMO Plan A by 17.55%, Health Net SmartCare HMO Plan B by 10.30%, Health Net PPO plan by 5.00%, Teamsters Local 856 Trust Kaiser Plan will increase by 5% and Kaiser Plans A, B and HDHP will increase by 4%.
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 2024 are based on 2023 census data with no adjustment for future migration between plans. The 2024 projected total premium cost for active employees is approximately $143.0 million; the projected total premium cost for 2023 is expected to reach $135.7 million by year’s end. The currently negotiated cost to the County is $133.6 million of that total ($122.3 million in 2023).
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, as well as computer vision care coverage, 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, 2023.
To assist the County in negotiating the best possible health care terms for our 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, 2024, the County subsidy, for the majority of 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 2024 proposed rates, Health Net SmartCare HMO B will be used for subsidy calculations.
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Coverage Type |
Health Net SmartCare HMO B Premium |
% _ |
County Subsidy |
|
Employee Only |
$1,184.52 |
80% |
$947.62 |
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Employee +1 |
$2,369.04 |
80% |
$1895.24 |
|
Employee +2/More |
$3,553.56 |
80% |
$2,842.85 |
Based on the County subsidy calculation the employee contribution for the Three-Tier Kaiser A plan will be no cost for all tiers (Employee, Employee +1, Employee +2 or more) for Plan Year 2024. The Three-Tier Kaiser B plan has a required minimum employee contribution at $20/$40/$60 which would result in a higher employee contribution than the Three Tier Kaiser A participants. The County and the signatory unions/associations to the Joint Labor Management Benefits Committee (JLMBC) have agreed the required minimum employee contribution for the Three-Tier Kaiser B plan will be waived for the 2024 Plan Year.
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 2024 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 our benefits plans through dedicated persistence and collaboration with the County’s consultant and the Joint Labor Management Benefits Committee (JLMBC). The Delta PPO, VSP Computer Vision Care (CVC), Voluntary Vision and the Voya Supplemental & Basic Life Insurance plans will not increase in 2024 and there is a decrease to the DeltaCare HMO plan. With the renewals and County subsidy for 2024, approximately 89% 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.
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 16, 2023 - November 3, 2023 for the 2024 plan year.
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I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. |
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ATTESTED: |
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Monica Nino, County Administrator and Clerk of the Board of Supervisors |
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By: |