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MEMORANDUM
TO: The Honorable Board of Supervisors
FROM: Pamela Nichols, Human Resources Director
DATE: July 23, 2019
SUBJECT: Consideration of Unbundling of Dental, Vision, and Life from Health Insurance Benefit for Employees Age 65 and Over
EXECUTIVE SUMMARY:
Currently, the County's Insurance Benefits for Life, Dental, Vision, and Health insurance are bundled together, requiring all employees to enroll in all benefits, or to opt out of the County's dental, vision, and health benefits and receive a $200 stipend in lieu of enrollment.
The Group Insurance Committee met on January 31, 2019 to discuss the unbundling of life, dental, and vision benefits for Medicare-eligible employees. When brought to Alliant, the County's insurance broker, for review, Alliant cautioned against unbundling these plans for all employees, as that could lead to an increase in premium due to adverse selection. However, with the small population of employees that are Medicare-eligible, Alliant believed that it would have a negligible effect on the County's insurance premiums, if any.
By unbundling the plans for Medicare-eligible employees, these employees would continue to have access to the County contribution, but only for the dental, vision, and life insurance benefits. This would need to be done with a two-year commitment in mind from the employee. If the Medicare-eligible employee chooses to waive medical coverage, they would need to do so for two years before being allowed to re-enroll. Likewise, if they chose to enroll in the County's medical plan, they would need to do so for two years before being allowed to drop that coverage.
FISCAL IMPACT: __ None __Budgeted __Non-Budgeted
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Recommended Action
RECOMMENDED ACTION:
Staff requests your approval of the Group Insurance Committee recommendations for the unbundling for employees 65 and over for Dental,...
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