Vote: adopted

Item Text

41. EMPLOYEE BENEFIT TRUST – BENEFIT HOLIDAY Approve (1) a benefit holiday of Medical Plan related premiums paid to the Maricopa County Employee Benefit Trust Fund by employees for the 12/8/2013 payroll in an amount which is estimated to be $520,821; and (2) a benefit holiday of Medical Plan related premiums paid to the Maricopa County Employee Benefit Trust Fund by County departments for the employer share of premiums for the 12/8/2013 payroll in an amount which is estimated to be $4,709,214. As benefit premiums fluctuate with each payroll, the total rebate will not exceed $5,500,000. The Maricopa County Self-Insured Benefits Board of Trustees has reviewed and recommended approval of this action. The purpose of this premium holiday is to reduce fund balance in the Benefits Trust in excess of recommended reserves as of June 30, 2013, as directed by the FY 2014 Adopted Budget. The premium holiday will eliminate about half of the excess balance. A second premium holiday is planned for later in the fiscal year, and will be brought forward for approval in a subsequent agenda item. The employee premium holiday will be implemented by not charging employees for medical plan related premiums for all employees that have an active “A” status or leave status “L” or “P” at the time of the premium holiday. The employer portion of the premium holiday will be implemented in the same manner as the employee holiday. The benefit premiums involved in this action will be for the following Self-Funded plans: three Medical Plans, one Pharmacy Plan, one Behavioral Health Plan and the three benefit premium incentive programs. This action will reduce Employee Benefit Trust Fund revenues but will not eliminate the Benefit Cost allocation to the departments for the 12/8/2013 pay period. The cost allocation was budgeted to be lower than actual benefit premium charges and thus the departments have already benefited from receiving a discounted cost allocation. (C-39-14-009-2-00)