HomeMy WebLinkAbout3.b. Update on employee benefits for Plan Year/Fiscal Year (FY) 2018-19 Page 1 of 4
Item 3.b.
Central Contra Costa Sanitary District
May 29, 2018
TO: ADMINISTRATION COMMITTEE
FROM: TEJI O'MALLEY, HUMAN RESOURCES MANAGER
REVIEWED BY: ANN SASAKI, DEPUTY GENERAL MANAGER
ROGER S. BAILEY GENERAL MANAGER
SUBJECT: UPDATE ON EMPLOYEE BENEFITS FOR PLAN YEAR/FISCAL YEAR (FY)
2018-19
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/fiscal year(FY) beginning July 1, 2018 through June 30, 2019.
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.
The table below reflects the current monthly premium rates. These premium amounts are for all active
employees as well as those retirees that have not yet reached age 65 when they are required to integrate
their medical coverage with Medicare.
FY 2017-18 Monthly Premium Rates
Kaiser HMO Health Net HMO Health Net P P O
Single $ 847.51 $1,283.05 $1,877.87
Dual $1,695.05 $2,566.09 $3,761.15
Family $2,398.48 $3,720.85 $5,444.85
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 2017-18 monthly premium rates.
FY 2017-18 Monthly Premium Rates
May 29, 2018 Regular ADMIN Committee Meeting Agenda Packet- Page 47 of 50
Page 2 of 4
Single $ 73.30
Dual $129.10
Family $205.10
CURRENT ANCILLARY COVERAGE
Employee Assistance Program(EAP) coverage is provided through Managed Health Network(M H N) 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 as well
as the Secretary of the District and the General Manager. The Management Group and Unrepresented
members pay for their Long-Term Disability insurance premium.
FY 2017-18 Monthly Premium Rates
MHN EAP Hartford Hartford Hartford Hartford LTD
Life/AD&D AD&D Dependent Life
$3.92 $0.35 per$1,000 $0.26 per $0.37 per unit $0.32 per$100
$1,000
BENEFIT NEGOTIATIONS FOR PLAN YEAR FY 2018-19
The District has concluded negotiations with all health benefit carriers. Effective July 1, 2018, Kaiser
premium rates will reflect a decrease of 4.9%, and Health Net HMO and PPO rates will increase by
16.0%. The Delta Dental premium rates will remain unchanged. The ancillary benefit premium rates will
remain the same except for MHN EAP which will decrease by 5.1%
These rates will remain in effect from July 1, 2018 through June 30, 2019, and will be subject to
renegotiation in the spring of 2019.
The table below represents the medical premium rates that will become effective July 1, 2018 through
June 30, 2019.
FY 2018-19 Monthly Premium Rates
Kaiser HMO Health Net HMO Health Net P P O
Single $805.56 $1,488.34 $2,178.33
Dual $1611.15 $2,973.67 $4,362.94
Family $2,279.77 $4,316.19 $6,316.03
For comparative purposes, the table below outlines the premium rate changes for the past seven plan
years.
Health FY12- FY13- FY14- FY15- FY16- FY17- FY18-
Plan 13 14 15 16 17 18 19
Kaiser 14.0% 2.8% 7.5% -2.8% 6.9% -5.0% -4.9%
Health 5.8% 9.2% 9.8% 6.5% 7.6% 9.5% 16.0%
Net
Delta -5.0% 0.0% 0.0% -1.0% -8.2% -4.0% 0%
Dental
As the table illustrates, the rate increases for Kaiser have averaged 2.6% over the past seven plan years,
and the Health Net rate increases have averaged 9.2%for the same time span.
The decrease in the Kaiser rates will result in annual savings of$258,952, while the annual increase in
May 29, 2018 Regular ADMIN Committee Meeting Agenda Packet- Page 48 of 50
Page 3 of 4
Health Net rates is $598,951.Although this memo details rate changes/impacts for the three highest cost
drivers of our health and welfare benefits, the District does offer several Medicare Supplemental Plans to
those retirees aged 65 and older. The rate increases for these supplemental plans vary anywhere from
2.3% to 16%. I n total, accounting for all the rate adjustments and participation rates, the District's health
and welfare benefits costs increased by 4.1%from $12,121,268 in FY 2017-18 to $12,612,938 in FY
2018-19.
For further comparison, attached is a copy of the premium rates of five comparable public agencies. 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 30, 2018 and end on June 27, 2018
where all employees and retirees can make any plan changes for the upcoming plan year.
will be available to answer any questions or provide clarification during the meeting.
ATTACHMENTS:
1. 2018 Medical Premium Comparison
May 29, 2018 Regular ADMIN Committee Meeting Agenda Packet- Page 49 of 50
2018 MEDICAL PREMIUM COMPARISON
Kaiser(single) Kaiser(Dual) Kaiser(Family) HMO(Single) HMO (Dual) HMO (Family) PPO(Single) PPO (Dual) PPO (Family)
CCCSD $805.56 $1,611.15 $2,279.77 $1,488.34 $2,973.67 $4,316.19 $2,178.33 $4,362.94 $6,316.03
CCWD $779.86 $1,559.72 $2,027.64 $863.48 $1,726.96 $2,245.05 $717.50 $1,435.00 $1,865.50
DDSD $779.86 $1,559.72 $2,027.64 $863.48 $1,726.96 $2,245.05 $717.50 $1,435.00 $1,865.50
DS RS D $779.86 $1,559.72 $2,027.64 $863.48 $1,726.96 $2,245.05 $717.50 $1,435.00 $1,865.50
E BM U D* $629.22 $1,258.44 $1,780.69 $1,354.31 $2,708.58 $3,832.61 $987.92 $2,014.85 $2,709.26
UNION SAN $779.86 $1,559.721 $2,027.641 $863.48 $1,726.961 $2,245.051 $717.50 $17435.00 $1,865.50
*This agency does not participate in CalPERS.All other agencies included in the survey contract for medical coverage through CalPERS.
May 29, 2018 Regular ADMIN Committee Meeting Agenda Packet- Page 50 of 50