FROM: Robert Thompson, General Manager
Originator: Laura Maravilla, Director of Human Resources
SUBJECT:
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2024 BENEFITS INSURANCE RENEWAL
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION: Recommend to the Board of Directors to:
Approve the Orange County Sanitation District 2024 Benefits Insurance Renewal for an overall not-to-exceed amount of $15,189,392, as specified below:
A. WORKTERRA (medical, dental, and vision plans; and Employee Assistance Program [EAP]) - Not to Exceed $13,316,662;
B. The Standard (basic life, short- and long-term disability) - Not to Exceed $497,246;
C. The Standard (EMT & Manager disability) - Not to Exceed $30,000;
D. BenefitWallet (Health Savings Accounts [HSA]) - Not to Exceed $42,000;
E. BPAS / Voya (Health Reimbursement Arrangement [HRA]) - Not to Exceed $189,000;
F. WORKTERRA (retiree-paid health premiums, recouped from retirees through monthly payments) - Not to Exceed $1,114,484; and
G. Approve a contingency in the amount of $759,470 (5%).
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BACKGROUND
The Orange County Sanitation District (OC San) offers healthcare and welfare insurance benefits (plans) to employees and eligible dependents in accordance with collective bargaining agreements, personnel policies, and adopted resolutions.
The renewal date for OC San's plans is January 1 of each year, with preparations starting as early as April of the prior year and insurance contracts being finalized in August. Human Resources (HR) staff works closely with OC San's broker of record, Alliant, to market the plans as needed, negotiate with insurance carriers, and obtain the most cost-effective coverage for participants.
The total cost of insurance coverage for the 2024 Plan Year is $15,189,392, which reflects an overall increase of 10.5%, or $1,333,872, across all plans.
In prior years, the overall increase to insurance was 4.1% for Plan Year 2019, 0.1% for Plan Year 2020, -1.4% for Pla...
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