Broward County Commission Regular Meeting
Director's Name: George Tablack
Department: Finance and Administrative Services Division: Human Resources
Information
Requested Action
title
A. MOTION TO APPROVE proposed health insurance funding for calendar year (plan year) 2025 as reflected in Exhibit 1 at a 5% increase in employees’ payroll deductions.
(Commissioner Bogen pulled this item from the Consent Agenda.)
(Motion A was heard concurrently and voted on separately.)
ACTION: (T-10:53 AM) Approved. (Refer to minutes for full discussion.)
VOTE: 6-1. Commissioner Bogen voted no. Commissioner Geller and Commissioner McKinzie were not audible during the vote.
B. MOTION TO APPROVE proposed County match under the 457 Deferred Compensation Plan with a $2,600 annual cap for all benefit-eligible employees.
(Commissioner Bogen pulled this item from the Consent Agenda.)
(Motion A was heard concurrently and voted on separately.)
ACTION: (T-10:53 AM) Approved. (Refer to minutes for full discussion.)
VOTE: 7-0. Commissioner Geller and Commissioner McKinzie were not audible during the vote.
C. MOTION TO APPROVE UnitedHealthcare Insurance Company (UHC) Diabetic Level2 Program with a $5 per pay period surcharge for each enrolled participant.
(Commissioner Bogen pulled this item from the Consent Agenda.)
(Motion A was heard concurrently and voted on separately.)
ACTION: (T-10:53 AM) Approved. (Refer to minutes for full discussion.)
VOTE: 7-0. Commissioner Geller and Commissioner McKinzie were not audible during the vote.
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Why Action is Necessary
Motion A. Board approval is necessary to amend the County’s insurance rates for calendar year (plan year) 2025.
Motion B. Board approval is necessary to fund a deferred compensation match.
Motion C. Board approval is necessary to fund the UHC Diabetic Level2 program.
What Action Accomplishes
Motion A provides for continuation of health and pharmacy insurance for calendar year (plan year) 2025 and approves the items necessary to prepare informational material for open enrollment, which is scheduled to begin on October 28, 2024.
Motion B provides a match to benefit-eligible employees contributing to one of the three deferred compensation plans offered by the County.
Motion C provides for the cost of continuous glucose monitors, monthly sensors, and all of the clinical services offered under the Diabetic Level2 plan.
Goal Related Icon(s)
☐County Commission
☐Go Green
☐MAP Broward
Previous Action Taken
None.
Summary Explanation/Background
THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT AND THE HUMAN RESOURCES DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTIONS.
Motion A. Health Insurance Funding for Calendar Year 2025.
The County has worked with its benefits consultant, USI Services LLC (“USI”), to make the following recommendations to the County’s health plans and programs. To prepare for open enrollment for calendar year 2025, currently scheduled to begin on October 28, 2024, this item seeks Board approval of the funding for health and pharmacy benefits as provided below.
Health Plans:
The following is the recommended health plan funding for calendar/plan year 2025:
• Continue the High Deductible Health Plan with Out-of-Network (HDHP-OON) and Consumer Driven Health Plan with a 5% increase in payroll deductions.
• Per Internal Revenue Service (IRS) guidelines, the minimum annual deductible allowed for an HDHP plan will increase from $1,600 to $1,650 for Single Coverage and from $3,200 to $3,300 for Dependent/Family Coverage.
• Continue funding the Health Savings Account for the HDHP-OON plan at the 2025 level (Single Coverage $1,200; Dependent/Family Coverage $2,400 per year).
Waiver Credit:
• Continue Waiver Credit provided to employees who waive County health insurance due to being enrolled under their spouse or parent’s plan, another group health plan, Medicare, Medicaid, TriCare, or Veteran’s insurance.
o Full-time employees: $2,600 annually, paid on a biweekly basis.
o Part-time 20 employees: $1,300 annually, paid on a biweekly basis.
This recommendation also includes the continuation of the following health program initiatives:
1. The $20 bi-weekly surcharge for working spouses/domestic partners who have health coverage available from their employers but chose to enroll in the County health plan.
2. The annual Engagement Incentive with the requirement that employees and spouses/domestic partners enrolled in the County’s HDHP health plan must complete a designated preventive screening within the prior 12 months to receive County-funding in their 2025 Health Savings Account (HSA) or Health Reimbursement Account (HRA), if not eligible to participate in a Health Savings Account.
Motion B. County Match for Deferred Compensation Plan.
The County offers a governmental 457 Deferred Compensation Plan, which allows benefit-eligible employees to defer a fixed dollar amount or percentage of their compensation on a pre-tax (tax-deferred) or after-tax basis into an account with one or more of the three County vendors (Brighthouse (pre-tax only), Nationwide and MissionSquare (pre-tax and after-tax)) for retirement savings. On December 4, 2018 (Item No. 51), the Board approved the County’s Amended and Restated Master Deferred Compensation Plan, which allows for County contributions to employee accounts under Article 5, Employer Contributions.
The deferred compensation match is intended to encourage more benefit-eligible employees to save for their retirement and financial wellbeing. The match would be based on a calendar year, with a $2,600 annual cap. The match will be made on a dollar-for-dollar basis each pay period. Employee and County contributions are always vested and are for the exclusive benefit of the employee and their beneficiaries.
Motion C. UnitedHealthcare Insurance Company (UHC) Diabetic Level2 Program.
With the Level2 program, employees have access to a clinical program that aims to improve type 2 diabetes. This is a voluntary enrollment program. Consequently, if enrolled member does not comply with the program, i.e. wearing the monitored glucose sensor, they will be removed from the plan.
Source of Additional Information
David Kahn, Director, Human Resources Division, 954-357-6005
Fiscal Impact
Fiscal Impact/Cost Summary
Motion A. Based on the proposed plan design options, the estimated cost of group health insurance, on a self-insured basis, for calendar year 2025, is as follows:
Health
Expected Claims $57.3M
Retention & PCOR Fee $3.5M
Stop Loss Coverage $3.3M
Pharmacy
Expected Claims $24.7M
Total Health and Pharmacy Costs $88.8M
Based on premium rates for 2025, the cost share is follows:
Employee Portion of Premiums $5.1M (5.7%)
COBRA/Retiree Premiums $1.5M (1.7%)
County Subsidy of Premiums $82.2M (92.6%)
Total Health and Pharmacy Cost $88.8M
County Subsidy of Premiums $82.2M
County Funding of HSA $9.6M
County Funding of Opt-Outs $1.5M
Total Cost to County $93.3M
Motion B. The fiscal impact to the County for the $2,600 per year match based on 6,115 benefit-eligible employees participating is estimated to cost $16.0M per year.
Motion C. The fiscal impact to the County for UHC’s Level2 program is $843,000. The total projected year one claims savings over program fees (at 25% enrollment) - $357k ($1.2 M savings - $843k cost).