Item Description:
title
Authorize Additional Charges to Departments for 2023 Health Insurance Premiums
end
Resolution:
body
BE IT RESOLVED, that the Hennepin County Board of Commissioners authorizes additional health insurance premium charges to departments as outlined on Attachment A; and the Controller be authorized to disburse funds as directed.
Background:
Hennepin County offers health insurance to qualifying employees through the Employee Health Plan, a self-insured healthcare plan which is funded through premiums paid by employees and their respective departments. The county utilizes a third-party administrator to process claims and negotiate pricing with healthcare providers, actual health insurance claims are paid from the County’s Employee Health Plan Self Insurance Fund.Previously the third-party administrator was Preferred One who was acquired by UMR in August of 2021. In January of 2023 the County transitioned to UMR as the third-party administrator for the health plan. In this transition process, employer contributions were set lower than the amounts available in department budgets for health insurance expenditures.The Office of Budget and Finance recommends that departments be charged an additional amount for health insurance premiums in 2023 as outlined on Attachment A. The additional charges will provide revenue to the Employee Health Plan Self Insurance Fund, which pays for healthcare claims for covered employees. Departments have adequate budget authority in their 2023 budgets to pay for the additional charges and will not require a supplemental appropriation to pay for these expenses. Premiums paid by employees in 2023 will not be impacted by this change.
recommendation
Recommendation from County Administrator: Recommend Approval