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Home My WebLink About05. Update on Benefits Renewal for Plan Year 2015-165. _ I Central Contra Costa Sanitary District May 11, 2015 TO: ADMINISTRATION COMMITTEE VIA: ROGER S. BAILEY, GENERAL MANAGER ANN SASAKI, DEPUTY GENERAL MANAGER FROM: TEJI O'MALLEY, HUMAN RESOURCES MANAGER�,Lp SUBJECT: UPDATE ON EMPLOYEE BENEFITS FOR PLAN YEAR 2015 -16 This memo is to provide an update to the Administration Committee and Board of Directors regarding the changes to employee benefits due to the completion of benefit renewal negotiations. These changes are effective for the plan year beginning July 1, 2015 through June 30, 2016. MEDICAL COVERAGE The District offers three options for health coverage: Kaiser, Health Net HMO, and Health Net PPO. Currently, Kaiser and Health Net HMO coverage is provided at no cost to the employees and their dependents. Employees selecting the Health Net PPO plan pay the difference in premiums between the PPO plan and the highest cost HMO plan. Employees who elect to waive District group medical coverage receive a monthly District contribution to the Section 401(a) plan in the amount of $400.00. The table below reflects the current (2014 -15) monthly premium rates: For informational purposes, below is a graph that illustrates the current participation rates for the various health plans for all employees. The chart includes both active employees and early retirees. Kaiser HMO Health Net HMO Health Net PPO Single $ 858.59 $1,022.23 $1,496.13 Dual $1,717.19 $2,044.44 $2,996.57 Family $2,429.81 $2,964.45 $4338.00 For informational purposes, below is a graph that illustrates the current participation rates for the various health plans for all employees. The chart includes both active employees and early retirees. Central Contra Costa Sanitary District Update on Employee Benefits for Plan Year 2015 -16 Page 2 of 4 120 - — 108 a 100 0 f 80 e m 60 - -- ---55 13 1 46 0 40 -- — - y e e 20 -- - — s 22 17 48 11 3 6 0 Kaiser Kaiser Kaiser HN HMOHN HMOHN HMO HN PPO HN PPO HN PPO Waiver (1) (2) (3 +) (1) (2) (3 +) (1) (2) (3 +) Health Plans DENTAL COVERAGE Dental coverage is provided through Delta Dental at no cost to the employees and their dependents. The table below reflects the current (2014 -15) monthly premium rates. BENEFIT RENEWAL NEGOTIATIONS FOR PLAN YEAR 2015 -16 The District has concluded negotiations with all health benefit carriers. Effective July 1, 2015, Kaiser premium rates will reflect a decrease of 2.8 %, and Health Net HMO and PPO rates will increase by 6.5 %. These rates will remain in effect from July 1, 2015 through June 30, 2016 and will be subject to renegotiation in the spring of 2016. Delta Dental Single $ 82.73 Dual $145.78 Family $236.45 BENEFIT RENEWAL NEGOTIATIONS FOR PLAN YEAR 2015 -16 The District has concluded negotiations with all health benefit carriers. Effective July 1, 2015, Kaiser premium rates will reflect a decrease of 2.8 %, and Health Net HMO and PPO rates will increase by 6.5 %. These rates will remain in effect from July 1, 2015 through June 30, 2016 and will be subject to renegotiation in the spring of 2016. Central Contra Costa Sanitary District Update on Employee Benefits for Plan Year 2015 -16 Page 3 of 4 The table below represents the medical premium rates that will be effective July 1, 2015 through June 30, 2016. The District also negotiated with Delta Dental, and premium rates for its dental plan will reflect a decrease of 1.0 %. The table below reflects the 2015 -16 monthly premium rates. Kaiser HMO Health Net HMO Health Net PPO Single $ 834.36 $1,088.67 $1,593.38 Dual $1,668.71 $2,177.33 $3,191.35 Family $2,361.22 $3,157.14 $4,619.97 The District also negotiated with Delta Dental, and premium rates for its dental plan will reflect a decrease of 1.0 %. The table below reflects the 2015 -16 monthly premium rates. For comparative purposes, the premium rate increases /decreases for the past six plan years are outlined in the table below. Health Delta Dental Single $ 81.90 Dual $144.32 Family $234.09 For comparative purposes, the premium rate increases /decreases for the past six plan years are outlined in the table below. Health 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 Plan Kaiser 2.0% 13.2% 13.9% 14.0% 2.8% 7.5% -2.8% Health 9.5% 12.5% 14.2% 5.8% 9.2% 10.1 % 6.5% Net Delta 8.0% 10.7% 0.0% -5.0% 0.0% 0.0% -1.0% Dental As the table illustrates, there have been substantial rate increases for both Kaiser and Health Net over the past few plan years. The rate increases for Kaiser have averaged 8.9% over the past six plan years, and this is the first time the District has experienced a decrease in the premium. The rate increases for the Health Net plans have averaged 10.2% over the same time span. The District had budgeted 8% increases in the Kaiser premium rates when calculating the 10 -year budget. The difference between the projected increase and the actual decrease for the next plan year reflects an approximate cost savings of $446,000. Actual cost savings are approximately $116,000 for the plan year. For further comparison, I have also attached a copy of the premium rates of five comparable public agencies (Attachment A). Due to the confidentiality of the information that is utilized to determine rate increases, other agencies or Central Contra Costa Sanitary District Update on Employee Benefits for Plan Year 2015 -16 Page 4 of 4 healthcare carriers cannot provide detailed information on how the premiums are calculated for the agencies included in the attachment. I will be available to answer any questions or provide clarification during the meeting. 2013 MEDICAL PREMIUM COMPARISON Attachment A K1 K2 K3+ HN HM01 HN HM02 HN HM03 HN PP01 HN PP02 HN PP03 CCCSD S834.36 $1,668.71 $2,361.22 51,088.67 $2,177.33 $3,157.14 $1,593.38 $3,191.35 $4,619.97 CCWD * ** $749.19 $1,498.37 $2,120.20 $1,257.61 $2,530.97 $3,598.66 $742.90 $1,512.57 $2,033.02 DDSD * * ** $714.45 S1,428.90 $1,857.57 $928.87 $1,857.74 $2,415.06 $700.84 $1,401.68 S1,822.18 DSRSD* $714.45 $1,428.90 $1,857.57 $928.87 $1,857.74 $2,415.06 $775.08 $1,550.16 $2,015.21 EBMUD $572.53 $1,145.06 51,620.26 $1,079.32 $2,158.63 $3,054.41 No PPO Comparison No PPO Comparison No PPO Comparison UNION SAN ** $714.45 $1,428.90 $1,857.57 $928.87 $1,857.74 $2,415.06 $775.08 $1,550.16 $2,015.21 Dublin San Ramon Services District offers Blue Shield HMO; PERS Care PPO ** Union San offers Blue Shield Access+ HMO; PERS Care PPO - -- * *' Contra Costa Water District's PPO plan is through the ACWA.JPIA (a JPA pool), so they have no ability to customize or make changes to their plan. Attachment A