3. Preliminary budget approval - Laserfiche WebLink

Updated Health and Dental Coverage Information The county sponsors both a health insurance plan and a dental plan under a self funding arrangement. Usually in preparing the budget we get an estimated rate of increase from the insurance company that manages our self- funded plan to plug in for the preliminary budget and later adjust the budget for the actual rate, which is normally less than the estimate. In this case we estimated increases in premiums of 12% for both the health plan and the dental plan. This morning we received some actual renewal rates for both the health and dental plans. We have not adjusted the budgets for these changes but will before the final budget is approved at the end of September. Under the health insurance plan the county and the employee share in any increase or decrease in the premiums. The rates for the employee portion of single, single with dependent, and family plans are based on a percentage of the total premium. Note that we normally round the premium dollars to whole numbers so the percentages may not work out exactly. 2007 2008 Actual Budget Health Insurance Single County $323 $362 Employee 7.15% ~ 28 Total $348 $390 Single W/Dependent County $524 $587 Employee 14.3% ~ 99 Total $612 $686 Family County $710 $795 Employee 21.45% 194 -1ll Total $904 $1,012 2008 Revised $329 25 $354 $535 89 $624 $723 198 $921 Our health plan is doing well, that is we have sufficient revenues to pay the claims and adequate reserves. We reinsure for any individual insured party claim over $65,000 for the plan year and for claims exceeding 120% of the "expected claims" in a plan year. The increase in the attachment point for our health plans was very good, going up only 1.9%, however the stop-loss premiums will increase by 18%. There are a number of changes to our current plan, such as co-pays increasing by $5, emergency co-pays increasing by $25, maximum out of pocket costs will increase but we don't have the figures on that t theis time. Given our blend of single, single / dependent, and family plans (166, 74, 110) this will reduce the preliminary budget by about $148,000 from where it stands right now.