Vote: approved

Item Text

19. EMPLOYEE BENEFIT TRUST – BENEFIT PREMIUM HOLIDAY Approve the following: 1. Implement a premium holiday for self-insured employee medical, pharmacy and behavioral health plans for the June 7, 2015 pay period. The premium holiday will affect both employee and employer contributions. The estimated savings to employees is $493,286 and the estimated savings to the employer are $4,735,245. The total impact of the premium holiday to the Employee Benefits Trust will not exceed $5,500,000. 2. In the event that Net Position in the Maricopa County Employee Benefits Trust, excluding Short-Term Disability funds, is reduced to deficit as of June 30, 2015, the shortfall will be eliminated by a fund transfer from the General Fund. Such a transfer from the General Fund may occur in FY 2015-16. This action will reduce the Net Position of the Employee Benefits Trust by reducing revenue that would otherwise be collected. The premium holiday will be implemented by not charging employee and employer premiums for medical, pharmacy and behavioral health plans for all employees that have an active “A” status or leave status of “L” or “P” at the time of the premium holiday. This action will reduce Benefit Trust revenues but will not eliminate the benefit cost allocation to departments for the June 7, 2015 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. The Benefits Board of Trustees is scheduled to review the proposed premium holiday at their regular meeting scheduled for April 20, 2015. Update: At their April 20, 2015 meeting, the Benefits Board of Trustees approved recommending to the Maricopa County Board of Supervisors a Benefit Premium Holiday for self-insured medical, prescription, and behavioral health plan to be implemented for one pay period in June 2015. (C-39-15-023-2-00)