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HomeMy WebLinkAbout07. Receive update on employee benefits for plan year 2017-18 7■ Central Contra Costa Sanitary District April 24, 2017 TO: ADMINISTRATION COMMITTEE VIA: ROGER S. BAILEY, GENERAL MANAGER ANN SASAKI, DEPUTY GENERAL MANGER FROM: TEJI O'MALLEY, HUMAN RESOURCES MANAGER SUBJECT: UPDATE ON EMPLOYEE BENEFITS FOR PLAN YEAR 2017-18 This memo is to provide information 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 , 2017 through June 30, 2018. CURRENT 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 upon evidence of coverage elsewhere receive a monthly District contribution to the Section 401(a) plan in the amount of $400.00. Kaiser HMO Health Net HMO Health Net PPO Single $892.01 $1,171 .41 $1 ,714.48 Dual $1 ,784.03 $2,342.81 $3,433.90 Family $2,524.40 $3,397.09 $4,971 .10 Central Contra Costa Sanitary District Page 2 of 3 Update on Employee Benefits for Plan Year 2017-18 For informational purposes, below is a graph that illustrates the current participation for the various health plans for all employees. The chart includes both active employees and early retirees (pre-age 65). Current Health Plan Participation 140 122 120 100 80 66 61 6 Un 0 ;4- 0 40 36 3 26 0 20 13 0 1 1 1 1 1 N Kaiser(1) Kaiser(2) Kaiser(3+) HN HMO HN HMO HN HMO HN PPO HN PPO HN PPO Waiving (1) (2) (3+) (1) (2) (3) Medical Plan CURRENT DENTAL COVERAGE Dental coverage is provided through Delta Dental at no cost to the employees and their dependents. The table below reflects the current (FY 2016-17) monthly premium rates. Delta Dental Single $76-30 Dual $134.50 Family $213.60 CURRENT ANCILLARY COVERAGE Employee Assistance Program (EAP) coverage is provided through Managed Health Network (MHN) at no cost to the employees and their dependents. Life, Accidental Death & Dismemberment (AD&D), and Long Term Disability (LTD) coverage are provided through the Hartford at no cost to Local 1 and MS/CG members. The Management Group members pay for their Long Term Disability insurance premium. The table below reflects the current rates. MHN EAP Hartford Hartford Hartford LTD Life/AD&D Dependent Life $3.92 $0.38 per $1,000 $0.37 $0.32 per$100 Central contra Costa Sanitary District Page 3of3 Update on Employee Benefits for Plan Year 2017-18 BENEFIT NEGOTIATIONS FOR PLAN YEAR 2017-2018 The District has concluded negotiations with all health benefit carriers. Effective July 1, 2017, wiser premium rates will reflect a decrease of 5.0%, and Health Net HMO and PPO rates will increase by 9.5%©. The Delta Dental premium rates will reflect a decrease of 4.0%. The ancillary benefit premium rates remained the same. These rates will remain in effect from July 1, 2017 through June 30, 20189 and will be subject to renegotiation in the spring of 2018. The table below represents the medical premium rates that will become effective July 1 , 2017 through June 30, 2018. Kaiser HMO Health Net HMO Health Net PPO Single $847.51 $1,283.05 $1,877.87 Dual $1,695.05 $2,555.09 $3,761.15 Family $2,398.48 $3,720.85 $5,444.85 For comparative purposes, the table below outlines the premium rate changes for the past six plan years. Health Plan 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Kaiser 14.0% 2.8% 7.5 -2.8% 6.9% -5.0% Health Net 5.8% 9.2% 9.8% 6.5% 7.6% 9.5% Delta -5.0% 0.0% 0.0% -1 .0 -8.2% -4.0% Dental As the table illustrates, the rate changes for Kaiser have averaged 3.9% over the past six plan years, and the Health Net rate increases have averaged 8.0% for the same time span. The decrease in the Kaiser and Dental rates will result in annual savings of $297,130, while the actual annual increase in Health Net costs is $394,366. These figures are in line with the proposed budget for FY 2017-18 that has an overall increase of $109,588 for the three carriers. For further comparison, attached is 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 healthcare carriers cannot provide detailed information on how the premiums are calculated for the agencies included in the attachment. The District's open enrollment period is scheduled to begin May 22, 2017 and end on June 16, 2017. 1 will be available to answer any questions or provide clarification during the meeting. ATTACHMENT A 2017 MEDICAL PREMIUM COMPARISON Kaiser(single) Kaiser(Dual) Kaiser(Family) HMO (Single) HMO(Dual) HMO(Family) PPO(single) PPO (Double) PPO (Family) .CCCSD $892.01 $19784.03 $2,524.40 $1,171.41 $2,342-81 $3,397.09 $11714.48 $31433.90 $4,971.10 CCWD $733.39 $11466.58 $1,906.81 $733.29 $1,466.58 $17906.55 $664.29 $17567.48 $11816.11 .DDSD $733.39 $11466.58 $11906.81 $733.29 $1,466-58 $1,906.55 $664.29 $1,567.48 $1,816.11 DSRSD $733.39 $1,466.58 $1,906.81 $733.29 $1,466-58 $1,906.55 $664.29 $17567.48 $1,816-11 EBMUD* $595.73 $11191-46 $1,685.91 $17252.17 $2,504-30 $3,543.55 $945.80 $1,928.52 $2,593.02 UNION SAN $733.39 $1,466.58 $1,906.811 $)�733.291y 7.48 466.58 $1,906.55!L-$664-29 $1,56 $1,816.11 *This agency does not participate in CalPERS. All other agencies included in the survey contract for medical coverage through CalPERS.