SUBJECT:
Title
Request Approval of Health Insurance Costs at Rate of Five (5) Percent to Both Employer and Employee (Budget Impact - Expenditure of $35,876,682)
Body
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INITIATOR: |
DEPARTMENT: |
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Sara Caron, Director |
Human Resources |
DESCRIPTION/BACKGROUND:
Marion County offers group health insurance to all full-time employees and dependents of the Board of County Commissioners, Clerk of Court, Sheriff, Property Appraiser, Tax Collector, Supervisor of Elections, and Hospital District. The County became self-insured effective October 1, 2020 with Florida Blue providing claims administration services and reinsurance.
This year’s actuarial funding recommendation, considering claims through March 2025, represents a 5% increase. Total incurred claims from April 2024 through March 2025 were $39.6 million. The current county reserve amount exceeds the 60-day reserve funding required by the State, which is $6.4 million.
The last increase was in FY 2023-24 at the amount of 4.9% for the employee. In FY 2022-23 and FY 2024-25, there was no increase in premium rates.
Since the implementation of self-insurance and in an effort to assist in mitigating long-term healthcare costs, the County has engaged the services of My Health Onsite for an employee clinic, which will provide both personal and occupational health to employees and their dependents. The clinic is anticipated to open in August, with the first year of expenses being fully funded from previous reserve accounts.
The total proposed health insurance cost includes the Employee Assistance Program and Wellness incentives for a total of $44.8 million; with employees and retirees having a 5% increase to their current contribution, for a total remaining cost to the County of $35.9 million.
BUDGET/IMPACT:
Expenditure of $35,876,682; The total estimated group healthcare cost is $44,831,442, with employee and retiree contributions of $8,954,760, leaving a total estimated impact of $35,876,682 to the budget
RECOMMENDED ACTION:
Recommended action
Motion to approve health insurance premium costs at a rate of 5% to both employer and employee, to include retiree rates, in order to fund the costs of premiums, claims, Employee Assistance Program, and Wellness Incentives, effective October 1, 2025.
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