Item C49 C49
BOARD OF COUNTY COMMISSIONERS
COUNTY of MONROE �� i Mayor Holly Merrill Raschein,District 5
The Florida Keys Mayor Pro Tern James K.Scholl,District 3
Craig Cates,District 1
Michelle Lincoln,District 2
' David Rice,District 4
Board of County Commissioners Meeting
July 17, 2024
Agenda Item Number: C49
2023-2262
BULK ITEM: Yes DEPARTMENT: Employee Services
TIME APPROXIMATE: STAFF CONTACT: Natalie Maddox
N/A
AGENDA ITEM WORDING: Approval of a resolution to set Group Health Insurance contribution
rates for active and retired employees and their dependents; consolidate the dependent rate tier structure
from 9 options to 4; adoption of the Florida Retirement System rates for Rule-of-70 retirees with 25 or
more years of service, and set rates for other retirees groups. These changes are supported as
competitive and appropriate by the County's benefits consultant, Gallagher.
ITEM BACKGROUND:
Approval of a resolution to set Group Health Insurance contribution rates for active and retired
employees and their dependents; consolidate the dependent rate tier structure from 9 options to 4; and
adopt the Florida Retirement System rates for Rule-of-70 retirees with 25 or more years of service, and
set rates for other retirees groups. These changes are supported as competitive and appropriate by the
County's benefits consultant, Gallagher.
Current issues:
1. Dependent coverage is noncompetitive, especially for employees hired 1/1/18 or later.
2. Lack of equity among employees; some employees pay more than others for the same coverage.
3. Current structure is very complicated due to the number of different rate tiers and hire date basis.
4. County plan is generally not as rich as competing employers.
The proposed rate changes also consolidate the dependent rate tier structure from 9 scenarios down to
4. The transition of rates to the new structure includes a reduction of rates for several dependent
classifications, and moderate increases in other areas.
Employees and retirees share the some of the costs of group health insurance. Contribution rates have
not increased since January 1, 2018, when new hires began paying higher rates.
Retiree rate details:
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• Rule of 70:
1. Adopt the Florida Retirement System years of service allocation rate for 25 or more (from
$5 to $7.50, for every year of service).
2. Remove actuarial formatting for rates (lock-in rate at current cost).
3. Adopt current rates for retirees with 10-19 years of service on the traditional plan at
$517/month.
4. Adopt current rates for retirees with 20-24 years of service on the traditional plan at
$259/month.
5. No change to rate for 10+years of service retirees eligible for Medicare, but staying on
County plan(lock-in rate).
This resolution will amend Resolution No. 189-2017.
A resolution will be presented separately for plan changes.
Monroe County Group Insurance Benefits provides services to over 2,400 individuals from:
• BOCC Employees
• Monroe County Sheriffs Office
• Property Appraiser
• Clerk of Court
• Court Administration
• Tax Collector
• Supervisor of Elections
• Land Authority
• Retired employees
• Dependents
The Monroe County Group Health Plans, Monroe County's medical insurance, are self-insured.
Employees are eligible to participate if they are full-time employees working a minimum of 25 or more
hours per week. Retirees and dependents are also eligible to participate.
PREVIOUS RELEVANT BOCC ACTION:
July, 2017: BOCC adopted various recommendations made by the Health Plan Advisory Committee
(HPAC), which included contribution rates.
September 5, 2017: BOCC amended Resolution No. 388-2013 with adoption of Resolution 189-2017
to adopt rule for collection of health insurance contributions for Group Health Insurance coverage from
retired Monroe County employees and established effective date of January 1, 2018.
INSURANCE REQUIRED:
No
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATION: Approval.
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DOCUMENTATION:
Resolution 189-2017.pdf
071724 Resolution—revising_Rates.final.pdf
FINANCIAL IMPACT:
Fund: 502-Group Insurance, Cost Center: 08002 - Group Insurance Operations
Effective Date: 01/01/2025
Expiration Date: N/A
Total Dollar Value of Contract: N/A
Total Cost to County: Approximately $1.7 million at assumed dependent enrollment increase. The
majority of that cost($1.7 million) is related to employees hired I/1/18 and later adding dependents
because of lower rates.
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RESOLUTION NO. 189 -2017
A RESOLUTION BY THE MONROE COUNTY BOARD OF COUNTY
COMMISSIONERS AMENDING RESOLUTION NO. 388-2013 AND
AMENDING RULES FOR COLLECTION OF HEALTH INSURANCE
CONTRIBUTIONS FOR GROUP HEALTH INSURANCE COVERAGE
FROM RETIRED MONROE COUNTY EMPLOYEES; AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, on March 13, 2001, the BOCC adopted Resolution No. 119-2001, stating
what amount of money a retiree (as defined by Florida Retirement System) must pay, above and
beyond the Florida health insurance subsidy outlined in F.S. 112.363, in order to maintain Monroe
County health insurance after retirement; and
WHEREAS, Resolution 119-2001 was subsequently amended by the BOCC, via
Resolution Nos. 154-2003, 354-2003, and 388-2013; and
WHEREAS,Resolution No. 388-2013 clarified the eligibility of an employee to remain
on the Monroe County group insurance plan ("Health Plan"), or to re-enroll following retirement,
and clarified the monthly contribution that the member would pay, depending on whether the
person was hired before or after October 1, 2001, and whether the person had retired at"normal
retirement date"or"early retirement date"(as defined in F.S. 121.021(29) or(30), respectively);
and
WHEREAS, on July 25, 2017, the BOCC adopted numerous changes to contribution rates
in the Monroe County Health Plan; and
WHEREAS, one of the changes approved by the BOCC was Option 7A, which stated that
beginning in Plan Year 2018,the subsidy for retirees hired prior to 10/1/2001, with a combined
years of creditable service plus age of at least seventy(70) ("Rule of 70 Retirees") who had less
than 25 years of service would be phased out over a 5-year period, with the result that by Plan
Year(calendar year) 2022, Rule of 70 Retirees who are members of the Health Plan with 20-24
years of service would pay 25% of the actuarial rate, and Rule of 70 Retirees with 10-20 years of
service will pay 50% of the actuarial rate; and
WHEREAS, on July 25, 2017 the BOCC also adopted other options, which impacted
contribution rates being paid by other retiree groups covered by Resolution No. 388-2013, and
amendment of Resolution No. 388-2013 is required;
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, FLORIDA,
Section 1. Section 1 in Resolution No. 388-2013 is amended to read as follows:
A. (i) Employees in Florida Retirement System (FRS) Regular and Special Risk
Classes with a hire date prior to October 1, 2001, with a minimum of ten (10) years
of full-time service with Monroe County, who retire on, or after, their normal
retirement date as described in Sec. 121.021(29), F.S., and who are covered under
the group health insurance coverage provided by Monroe County upon retirement,
may maintain their group health insurance benefits with Monroe County following
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1
their retirement provided they contribute amounts shown in the table below.
Employees also hired prior to October 1, 2001 in other FRS Classes who complete
the number of years of creditable service required by the Florida Statutes to be
eligible for a benefit under FRS, who retire on, or after, their normal retirement
date under Sec. 121.021 (29) F.S., and who are covered under the group health
insurance coverage provided by Monroe County upon retirement, including those
who have retired or will retire in accordance with these insurance programs, and all
other retirees who as of October 1, 2001 were participating in the County's group
insurance program at no cost, will also pay the same rates.
2018 HIS 17% 18%
2019 HIS 18% 26%
2020 HIS 20% 34%
2021 HIS 22% 42%
2022 HIS 25% 50%
Once the retiree becomes eligible for Medicare as a result of age, receipt of Social Security
Disability, or end stage renal disease, the retiree shall contribute 100% of the annual
actuarial rate.
(ii) Employees hired on or after October 1, 2001, who meet the requirements
of Section 1. A. (i) may maintain their group health insurance benefits with
Monroe County following their termination of employment, provided such retired
employees pay to Monroe County a monthly contribution in an amount established
annually by the Board of County Commissioners. The amount will equal, but not
exceed, Monroe County's monthly actuarial rate, based on the annual actuarial rate
calculated for active employees. Such amount will be payable on the first day of
every month commencing with the month following the month in which the
employee retires.
B. (i) Employees with a hire date prior to October 1, 2001, with ten(10) years of
full-time service with Monroe County who are covered under the group health
insurance coverage provided by Monroe County upon retirement and retire at an
early retirement date, as described in Sec. 121.021(30) F.S., may maintain their
group health benefits with Monroe County following their early retirement,
provided such early retirees pay to Monroe County a monthly contribution in an
amount established annually by the Board of County Commissioners. The amount
will equal, but not exceed, Monroe County's monthly actuarial rate, based on the
annual actuarial rate calculated for active employees. Such amount will be payable
on the first day of every month commencing with the month following the month in
which the employee retires. Early retirees who pay the amount described in this
1 The actuarial rate is the amount determined and established by the County,each year,to be the true expected cost
per category of member(active employee,dependent of active employee,retiree,or dependent of retiree),with the
exception that the retiree actuarial rate is capped so that it is no higher than active employee rate.
2 HIS=value of health insurance subsidy,per F.S. 112.363.
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subsection,_i.e., subsection 1. B. (i), will continue to be covered by Monroe
County's group health insurance benefits until they meet the requirements shown in
(a), (b) or(c)below:
(a) Sixty (60) years of age for Regular Class employees or fifty-five
(55) years of age for Special Risk Class; or
(b) Qualifications under the Rule of 70 wherein the combined years of
service with Monroe County and the retiree's age equal a total of
seventy(70).
Upon satisfying the conditions in (a), (b) or (c) below, these members will be
required to pay the contribution amounts outlined in subsection 1. A. (ii), above.
(ii) Employees with a hire date on or after October 1, 2001 who meet the
requirements of Section 1. B. (i) above and retire at any early retirement date, may
maintain their group health insurance benefits with Monroe County following their
early retirement, providing such early retirees pay to Monroe County a monthly
contribution in an amount established annually by the Board of County
Commissioners. The amount will equal, but not exceed, Monroe County's monthly
actuarial rate for the month, based on the annual actuarial rate,, following the month
in which the employee retires. Notwithstanding anything to the contrary, however,
employees with a hire date on or after October 1, 2001 are not eligible for the
amount adjustment under Section I.B. (i).
C. Employees with at least ten (10) years of full-time service with Monroe County
who are covered under the group health insurance coverage provided by Monroe County
upon termination of employment and are fully vested under FRS who elect not to retire
under FRS upon termination of employment with Monroe County may elect to re-enroll
under the group health insurance coverage provided by Monroe County upon retirement
under FRS, provided that Monroe County was their last FRS employer. Former employees
electing this option, may maintain their group health insurance benefits with Monroe
County following such election, provided such former employees pay to Monroe County a
monthly contribution in an amount established annually by the Board of County
Commissioners. The amount will equal, but not exceed, Monroe County's actuarial rate
for active employees. Such amount will be payable on the first day of every month
beginning with the first of the month following the month in which the employee elected to
re-enroll under the group health insurance coverage provided by Monroe County upon
retirement from FRS. Employees electing this option must notify Monroe County of their
intent to re-enroll in the County's group health insurance program. Employees who re-
enroll under the group health insurance coverage pursuant to this paragraph are not eligible
for amount adjustments under subsection 1.B.(i) of this resolution.
D. Employees with less than ten (10) years of full-time service with Monroe County
who are covered under the group health insurance coverage provided by Monroe County
upon termination of employment and are fully vested under FRS, upon retirement under
FRS in accordance with these provisions, and provided that Monroe County was their last
FRS employer, may maintain their group health insurance benefits with Monroe County
following their termination of employment, provided such terminated employees pay to
Monroe County a monthly contribution in an amount established annually by the Board of
County Commissioners. The amount will equal, but not exceed, Monroe County's
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4„
monthly actuarial rate for active employees. Such amount will be payable on the first day
of every month beginning with the first of the month following the month in which the
employee terminates employment with Monroe County. Employees with less than ten(10)
years of full-time service with the County are not eligible for amount adjustments under
subsection B. (i) of the resolution.
Section 2. The contribution rates shown above are separate and apart from the annual
subsidy for Medicare-eligible Rule of 70 retirees referenced in Resolution No. 190 - 2017.
Section 3. The contribution rates set forth in this resolution shall become effective on
January 1, 2018.
PASSED AND ADOPTED by the Board of County Commissioners of Monroe County,
Florida at a regular meeting held on the 5th day of September , 2017.
Mayor George Neugent Yes
Mayor Pro Tem David Rice Yes
Commissioner Heather Carruthers Yes
Commissioner Danny Kolhage Yes
Commissioner Sylvia Murphy Yes
BOARD OF COUNTY COMMISSIONERS
F..,. OF MONROE COUNTY, FLORIDA
BY �a .ti�a•�
}.° Mayor George Neugent
3P �
KEVI ADO , CPA, CLERK
By:
Deputy Clerk
MONROE COUNTY ATTORNEY
o c U_ AP(7 D T FO
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a a L4z YNTHIA L. HALL
r coo ASSIST NT COUNTY ATTORNEY
Date
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4
2362
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RESOLUTION NO. 2024
A RESOLUTION OF THE MONROE COUNTY BOARD OF
COUNTY COMMISSIONERS REVISING PREMIUM RATES
FOR MONROE COUNTY MEDICAL AND PRESCRIPTION
COVERAGE FOR ACTIVE AND RETIRED EMPLOYEES;
ESTABLISHING AN EFFECTIVE DATE; AND AMENDING
RESOLUTION NO. 189-2017.
WHEREAS, Monroe County Board of County Commissioners ("BOCC") is the
administrator for the health plan providing medical and prescription coverage for active and retired
employees of Monroe County and the constitutional officers ("Covered Employers"); and
WHEREAS, on March 13, 2001, the BOCC adopted Resolution No. 119-2001, stating
what amount of money a retiree (as defined by Florida Retirement System) must pay, above and
beyond the Florida health insurance subsidy outlined in F.S. 112.363, in order to maintain Monroe
County health insurance after retirement; and
WHEREAS, Resolution 119-2001 was subsequently amended by the BOCC,via
Resolution Nos. 154-2003, 354-2003, and 388-2013; and
WHEREAS, Resolution No. 388-2013 clarified the eligibility of an employee to
remain on the Monroe County group insurance plan("Health Plan"), or to re-enroll following
retirement, and clarified the monthly contribution that the member would pay, depending on
whether the person was hired before or after October 1, 2001, and whether the person had
retired at "normal retirement date" or"early retirement date" (as defined in F.S. 121.021(29)
or (30), respectively); and
WHEREAS,on July 25, 2017,the BOCC adopted numerous changes to contribution
rates in the Monroe County Health Plan for both active and retired employees; and
WHEREAS, one of the changes approved by the BOCC at the July 25, 2017 meeting
was Option 7A, which stated that beginning in Plan Year 2018, the subsidy for retirees hired
prior to 10/1/2001, with a combined years of creditable service plus age of at least seventy
(70) ("Rule of 70 Retirees") who had less than 25 years of service would be phased out over
a 5-year period, with the result that by Plan Year (calendar year) 2022, Rule of 70 Retirees
who are members of the Health Plan with 20-24 years of service would pay 25% of the
actuarial rate, as the term "actuarial rate" was defined in Resolution No. 189-2017, and Rule
of 70 Retirees with 10-20 years of service will pay 50% of the actuarial rate; and
WHEREAS, on July 25, 2017 the BOCC also adopted other options, which impacted
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contribution rates being paid by other retiree groups covered by Resolution No. 388-2013,
and amendment of Resolution No. 388-2013 was required; and
WHEREAS, on September 5, 2017 the BOCC adopted Resolution No. 189-2017,
which amended Resolution No. 388-2013 and set the rules for collection of health insurance
contributions for Group Health Insurance coverage from retired employees of Covered
Employers and established effective date of January 1, 2018; and
WHEREAS, with respect to active employees, for the past several years, the County
has collected different premiums from active employees for medical and prescription
coverage based on date of hire (before 5/1/2012, or on or after 5/1/2021), and the County
desires to create equity by adopting a single rate for all benefit eligible active employees,
and also to adopt streamlined tiers for coverage and cost, and to set streamlined dependent
rates; and
WHEREAS, with respect to Rule of 70 retirees, the County desires to remove the
connection between actuarial tables and rates and instead set rates for Rule of 70 retirees
based on years of service (10-19 or 20-24) and Medicare eligibility; and
WHEREAS, with respect to Rule of 70 retirees on the traditional plan as shown
below, where the County provides medical and prescription coverage for the cost of the
statutory Florida Retirement System health insurance subsidy, the County desires to adopt
the recently increased statutory Florida Retirement System years of service allocation
(health insurance subsidy) as the monthly cost for retiree medical and prescription coverage,
increasing the monthly amount from $5 to $7.50 for each year of service for retirees with
twenty-five (25) or more years of service.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, FLORIDA,
Section 1. The recitals above are hereby adopted and incorporated in this Resolution.
Section 2. Active Employees. The County establishes the following premiums for medical and
prescription coverage beginning January 1,2025:
Active Employees,Rate Details:
Active employees shall pay the following premiums effective January 1, 2025:
Proposed 2026 Employee/Dependent Rates
Monroe County Board of Traditional Plan Traditional Plan HDHP/HSA HDHP/HSA
03559/03 1 03559/03769 05182/05183 05182/05183
County Commissioners Monthly Rate I BiWeekly Rate Monthly Rate BiWeekly Rate
EMPLOYEE AND DEPENDENT MEDICAL/RX PREMIUMS EFFECTIVE 1/1/25
All Benefit Elibigle Employees $75 $35 $0 I $0 I
DEPENDENTS ONLY
Spouse Only $433 $200 $293 $135
Spouse+Chi ld(ren) (Family) $758 $350 $509 $235
Child(ren)Only $325 $150 $217 $100
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Section 3. Rule of 70 Retirees.
For "Rule of 70 Retirees" as that term was defined in Monroe County Resolution No. 189-2017, the
County establishes the following premiums for medical and prescription coverage beginning January
1, 2025:
Retired Rule of 70 Employees, Rate Details:
Proposed 2026
Retiree/Dependent Rates
Traditional HDHP/HSA
Monroe Count Board of Plan 06182/06183
y 03669/03769
County Commissioners
Monthly Rate Monthly Rate
RETIREE AND DEPENDENT MEDICAL/RX
RULE OF 70 RETIREES ONLY
(Hired prior to 10/01/01)
25+ YRS - Not Medicare Eligible FRS/HIS $56
20-24 YRS - Not Medicare Eligible $259 $216
10-19 YRS - Not Medicare Eligible $517 $433
10+ YRS - Medicare Eligible
Staying on County Plan $930 $778
Retiree Subsidy Credit - Medicare Eligible
Staying on County Plan $250
Retiree Subsidy Disbursement - Medicare
Eligible Leaving County Plan $250
RETIREES
(Hired 10/01/01 or later)
Non Rule of 70 Retirees -
Not Medicare Eligible $1,034 $865
Non Rule of 70 Retirees -
Medicare Eligible $930 $778
Surviving Spouse -
Not Medicare Eligible $433 $135
Surviving Spouse - Medicare Eligible $930 $778
DEPENDENTS ONLY:
Spouse Only - Medicare Eligible $930 $778
Spouse Only- Not Medicare Eligible $433 $135
Spouse + Child(ren) Not Medicare Eligible $758 $432
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Section 4. F.S. 112.363, Health Insurance Subsidy. The health insurance subsidy specified in
F.S. 112.363 ($7.50 per month) shall constitute payment in full for medical and prescription coverage
for Rule of 70 retirees with 25+years of service on the County's traditional plan who are not
Medicare eligible.
Section 5. Retiree Rate Eligibility. Section 1 of Resolution No. 189-2017 is revised in its
entirety and replaced with the following:
Retiree Rate Eligibility
1. Normal retirement date:
a. Employees in Florida Retirement System (FRS) Regular and Special Risk Classes with
a hire date prior to October 1, 2001, with a minimum of ten (10)years of full-time
service with Covered Employers, who retire on, or after their normal retirement date as
described in Sec. 121.021(29), F.S., and who are covered under the group health
insurance coverage provided by Monroe County upon retirement, may maintain their
group health insurance benefits with Monroe County following their retirement
provided they contribute amounts shown in the table below. Employees also hired
prior to October 1, 2001 in other FRS Classes who complete the number of years of
creditable service required by the Florida Statutes to be eligible for a benefit under
FRS, who retire on, or after, their normal retirement date under Sec. 121.021(29) F.S.,
and who are covered under the group health insurance coverage provided by Monroe
County upon retirement, including those who have retired or will retire in accordance
with these insurance programs, and all other retirees who as of October 1, 2011 were
participating in the County's group insurance program at no cost, will also pay the
same rates.
b. Employees hired on or after October 1, 2001, who meet the requirements of Section
1(a) may maintain their group health insurance benefits with Monroe County
following their termination of employment,provided such retired employees pay to
Monroe County a monthly contribution in an amount established by the Board of
County Commissioners. Such amount will be payable on the first day of every month
commencing with the month following the month in which the employee retires.
2. Early retirement date:
a. Employees with a hire date prior to October 1, 2001, with ten (10)years of full-time
service with Covered Employers who are covered under the group health insurance
coverage provided by Monroe County upon retirement and retire at an early retirement
date, as described in Sec. 121.021(30) F.S., may maintain their group health benefits
with Monroe County following their early retirement,provided such early retirees pay
to Monroe County a monthly contribution in an amount established by the Board of
County Commissioners. Such amount will be payable on the first day of every month
commencing with the month following the month in which the employee retires. Early
retirees who pay the amount described in this paragraph, i.e.,paragraph (2)(b), will
continue to be covered by Monroe County's group health insurance benefits until they
meet the requirements shown in (a) or (b)below:
(a) Sixty (60)years of age for Regular Class employees or fifty-five (55)years of age
for Special Risk Class; or
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(b) Qualifications under the Rule of 70 wherein the combined years of service with a
Covered Employer and the retiree's age equal a total of seventy (70).
Upon satisfying the conditions in (a) or(b) above, these members will be required to
pay the contribution amounts outlined in paragraph 1(a), above.
b. Employees with a hire date on or after October 1, 2001 who meet the requirements of
Section 1. B. (i) above and retire at any early retirement date, may maintain their group
health insurance benefits with Monroe County following their early retirement,
providing such early retirees pay to Monroe County a monthly contribution in an
amount established by the Board of County Commissioners.
3. Retirees where Monroe County was not the last employer, 10+years of service:
Employees with at least ten (10)years of full-time service with a Covered Employer who are
covered under the group health insurance coverage provided by Monroe County upon
termination of employment and are fully vested under FRS who elect not to retire under FRS
upon termination of employment with Monroe County may elect to re-enroll under the group
health insurance coverage provided by Monroe County upon retirement under FRS, provided
that Monroe County was their last FRS employer. Former employees electing this option,
may maintain their group health insurance benefits with Monroe County following such
election,provided such former employees pay to Monroe County a monthly contribution in
an amount established by the Board of County Commissioners. Such amount will be payable
on the first day of every month beginning with the first of the month following the month in
which the employee elected to re-enroll under the group health insurance coverage provided
by Monroe County upon retirement from FRS. Employees electing this option must notify
Monroe County of their intent to re-enroll in the County's group health insurance program.
Employees who re-enroll under the group health insurance coverage pursuant to this
paragraph are not eligible for amount adjustments under paragraph (2) of this resolution.
4. Retirees, < 10 years of service: Employees with less than ten (10) years of full-time service
with a Covered Employer who are covered under the group health insurance coverage
provided by Monroe County upon termination of employment and are fully vested under
FRS, upon retirement under FRS in accordance with these provisions, and provided that a
Covered Employer was their last FRS employer, may maintain their group health insurance
benefits with Monroe County following their termination of employment,provided such
terminated employees pay to Monroe County a monthly contribution in an amount
established by the Board of County Commissioners. Such amount will be payable on the first
day of every month beginning with the first day of the month following the month in which
the employee terminates employment with a Covered Employer. Employees with less than
ten (10)years of full-time service with a Covered Employer are not eligible for amount
adjustments under paragraph(2) of this resolution.
Section 6. The contribution rates shown above are separate and apart from the $250 annual
subsidy for Medicare-eligible Rule of 70 retirees referenced in Resolution No. 339-2017. There are
no changes to the $250 retiree subsidy as defined in Resolution No. 339-2017.
Section 7. The contribution rates set forth in this resolution shall become effective on
January 1, 2025.
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PASSED AND ADOPTED by the Board of County Commissioners of Monroe County,
Florida, at a regular meeting held on the 17th_day of July, 2024.
Mayor Holly Merrill Raschein
Mayor Pro Tem James K. Scholl
Commissioner Craig Cates
Commissioner Michelle Lincoln
Commissioner David Rice
(SEAL)
BOARD OF COUNTY COMMISSIONERS
Attest: KEVIN MADOK, CLERK OF MONROE COUNTY, FLORIDA
BY: BY:
As Deputy Clerk Mayor Holly Merrill Raschein
Approved as to form and legal sufficiency:
Monroe County Attorney's Office
Date: 7-1-2024
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Liz Yongue
From: Shillinger-Bob <Shillinger-Bob@ Mon roeCounty-FL.Gov>
Sent: Friday, July 12, 2024 2:18 PM
To: Shillinger-Bob
Cc: Wilson-Kevin; Gastesi-Roman; Cook-Bryan; Gomez-Krystal; Ballard-Lindsey; Kevin
Madok; Liz Yongue
Subject: Request to Postpone Items C30 and C49
Attachments: Request to Postpone Agenda Items C30 and C49 on 17 July 2024 agenda.pdf
Follow Up Flag: Follow up
Flag Status: Flagged
Mayor&Commissioners (via blind copy):
Attached please find a request to postpone items C30 and C49 on next Wednesday's (7/17) agenda form Commissioner
Cates.
1 10RI4)
� Bob Shillinger
n County Attorney
,may Monroe County Attorney's Office
1111 12th Street, Suite 408
_
SM cEBT���w4 Key West, FL 33040
(305)292-3470
CITY,COUNTY (305)292-3516 (facsimile)
&LOCAL
GOVERNMENT LAW
Note, Florida has a broad public records law. Any information you send to this address, including your
contact information, may be subject to public disclosure.
i
W. BOARD OF COUNTY COMMISSIONERS
County of Monroe �� � !����YY����JJII °� Mayor Holly Merrill Raschein,District 5
The Florida Keys Mayor Pro Tem James K.Scholl,District 3
�ya' Craig Cates,District 1
Michelle Lincoln,District 2
_ ,.
David Rice,District 4
July 12, 2024
To whom it may concern:
I am writing this letter to ask that the Monroe County Board of County Commissioners postpone
July's agenda items C30 and C49 until after the 2025 budget has been discussed and analyzed by the
board and employees. In doing so, I believe this will help us to make a more informed decision for both
County employees and the tax paying citizens of Monroe County. I appreciate your consideration.
Sincerely,
411
Craig Cates
Monroe County Commissioner
District 1
305-587-0587
BoccdlsI(c onroecount - oy
Employee Benefits:
2025 Proposed Benefit Changes (C30)
& Rate Adjustments (C49)
* History
* Current Issues
* Proposed Plan & Rate Adjustments
p
A collaborative presentation by Monroe County Employee Benefits ;
and Gallagher Benefits Services, Monroe County's Benefits Consultants. Gallagher
'r,. r':J N (.Fc Y+ricn Vi w4 N1nn,mtiJLL v@ Cc�r.^,�rl1i[rq
Current Issues
• Some plan coverages and costs are not competitive in the local public sector
employment market (C30):
1. Post-deductible Cost Share: 75% County/25% Employee
2. Obstetrics, Chiropractic, Physical and Occupation Therapy: $ 50 Copay
3. Maximum Out of Pocket Costs Set High:
* Traditional Plan: $ 7,150 Single and $ 14,300 Family
* High Deductible w/Health Savings Acct: $ 6,650 and $ 13,300 Family
• Three Tiers of Employee and Dependent rates (C49):
1. Employees Hired Prior to 5/1/2012
2. Employees Hired between 5/1/2012 and 1/1/2018
3. Employees Hired Since 1/1/2018
• For post-2018 hires, dependent rates are variable from year to year
• Many tiers of rates exist for many dependent coverage scenarios
Some plan coverages and costs are not competitive (C30)
Proposed Plan Adjustment:
1. Post-deductible Cost Share (Traditional Plan): 75% County/25% Employee
Proposal: Change % Co my/ % Employee
2. Traditional Plan OBGYN, Chiropractic, Physical & Occupational Therapy:
$50 Co-pay
Proposal: Change Co-pay to (same as primary care visit co-pay)
3. Maximum Out of Pocket costs set high:
Traditional Plan: $7,150 Single/$14,300 Family
Proposal: $5,000 Single/$10,000Family
High Deductible/Health Savings Acct: $6,650 Single/$13,300 Family
Proposal: $4,000 Sin e/$ , Family
*Applicablet active/retired employees, and dependents
Estimated 2025 Plan Enhancement Costs
(00)
Cast
Description of Plan Change Impact
Once the Traditional PPO deductible is met, employees pay 20% of balance vs. 25% $303,682
The maximum out-of-pocket cost for the Traditional PPO reduces to $5,000 for single
coverage and $10,OOO for family coverage from $7,150/ $14,300 $335,354
The maximum out-of-pocket cost for the HDHP/ HSA reduces to $4,000 for single
coverage and $B4OOOfor family coverage from $6,650/ $13,300 $197,505
Traditional PPO: Change the office copay on specialist office visits for specific specialities:
Chiropractic: change from $50 to $30 (matching the PCP office copay) $29,809
Physical & Occupational Therapy: Change from $ 50 to $30 $33,535
OBGYN: Change from $50 to $ 30 $1,863
Projected Impact of All Changes $901,749
Issue:
Three tiers of employee and dependent rates (C49)
Current rate tiers:
1. Employees hired prior to 5/1/2012
2. Employees hired between 5/1/2012 and 1/1/2018
3. Employees hired since 1/1/2018
Proposal : Remove rate system based on hire date and
change to one rate structure for all employees and
dependents. This is also applicable to retiree dependent
coverage cost.
s
Many tiers of rates exist for various dependent coverage scenarios (C49)
Current dependent rate structure issue:
Overly complex tier rates exist for dependent coverage scenarios:
1. Employee
2. Employee, + Spouse/Domestic Partner
3. Employee, Spouse/Domestic Partner, + Child
4. Employee, Spouse/Domestic Partner, + 2 or more Children
5. Employee, + 1 Child
6. Employee, + 2 Children
7. Employee, + 3 Children
8. Employee, + 4 Children
9. Employee, + 5 Children
*Rates for these options, times two (2), due to varied rates based on hire date
Proposal: Reduce the rate scenarios from 9 to 4:
1. Employee
2. Employee, + Spouse/ o estic Partner
3. Employee, + Cil (ren)
4. Employee, + Spouse, and Children)
�a
Example: Employee A-hired prior to 2012
Employee 6-hired after 2018 *Salary of $43,000
. w
a
2017 2018 2019 2020 2021 2022 2023 2024 2025'
Employee A hired prior to 2012-Salary$43,000 $ 1,653.85 $ 1,720.00 $ 1,756.12 $ 1,826.36 $ 1,826.36 $ 1,917.68 $ 2,090.27 $ 2,236.59 $ 2,348.42
EmployeeA Health Care Premium $ 278.00 $ 278.00 $ 278.00 $ 278.00 $ 278.00 $ 278.00 $ 278.00 $ 350.00
2017 2018 2019 2020 2021 2022 2023 2024 2025'
Employee B hired after 2018-Salary$43,000 $ 1,720.00 $ 1,756.12 $ 1,826.36 $ 1,826.36 $ 1,917.68 $ 2,090.27 $ 2,236.59 $ 2,348.42
Employee B Health Care Premium $ 373.00 $ 373.00 $ 428.00 $ 428.00 $ 448.00 $ 500.00 $ 500.00 $ 350.00
*Amounts in example are per pay period
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Proposed 2025 Active Employee Rates (C49)
Proposed 2025 Active Employee & Dependent Rates
High Deductible/Health
Traditional Plan Savings Account
(HDHP/HSA)
Monroe County Board of County Commissioners
BiWeekly Rate BiWeekly Rate
EMPLOYEE AND DEPENDENT MEDICAL/RX PREMIUMS EFFECTIVE 1/1/25
Employee Only
$35 $0
Employee,+ Child(ren) Only $150 $100
Employee,+ Spouse Only $200 $135
Employee, Spouse, + Child(ren) (Family) $350 $235
Proposed 2025 Active Employee Rates and Impact
(C49)
Current 26-Pay Rate Change in 26-Pay Rate
Current Longer Shorter Longer Shorter
Plan Tier Proposed Tier, Service Service Proposed Service Service'
Traditional PPO EE Employee Only $23 $35 $35 $12 $0
ES Employee +Spouse $199 $357 $200 $1 ($157)
E1C Employee +Child(ren) $101 $178 $150 $49 ($28)
E2C Employee +Child(ren) $180 $321 $150 ($30) ($171)
EK Employee +Child(ren) $258 $465 $150 ($108) ($315)
E4C Employee +Child(ren) $337 $608 $150 ($187) ( 458)
E5C Employee +Child(ren) $415 $751 $150 ($265) ($601)
ES1C Employee +Family $278 $500 $350 $72 ($150)
ES2C lEmployee +Family $395 $715 $350 ( 45) ($365)
High Deductible Health EE Employee Only $0 $0 $0 $0 $0
Plan (HDHP)/HSA ES Employee +Spouse $138 $270 $135 ($3) ($135)
E1C Employee +Child(ren) $61 $120 $100 $39 ($20)
E2C Employee +Child(ren) $122 $240 $100 ($22) ($140)
EX Employee +Child(ren) $184 $360 $100 ($84) ($260)
E4C Employee +Child(ren) $246 $479 $100 ($146) ($379)
E5C Employee +Child(ren) $307 $599 $100 ($207) ($499)
ES1C Employee +Family $199 $389 $235 $36 ($154)
ES2C Employee +Family $291 $569 $235 ($56) ($334)
2025 Proposed Rule of 70 Retiree Rate Adjustments
(C49)
Rule of 70 Retirees:
1. Rule of 70 Retirees with 10 — 24 years of service, not Medicare Eligible, have variable rates and
increase each year.
Proposal: Remove variable determination of rates and adopt current rates which have been in
place for 2 years (lock in rates).
2. Rule of 70 Retirees Medicare Eligible but remain on the County Plan have a variable rate and
increase each year.
Proposal: Adopt current rate, which have been in place for 2 years, and remove
variable determination of rates from the process.
Adopt Rule of 70 Retiree Traditional Plan — Medicare Eligible: $6 0
(Net After County Retiree Subsidy of$250 is applied.)
3. The BOCC adopted that rates for Rule of 70 Retirees with 25 — 30 Years of Service would be based
on the Florida Retirement System (FRS) allowance for health insurance subsidy. The FRS has
changed the allowance from $5.00 for each year of creditable service to $7.50.
Proposal: Adopt the FRS $7.50 per year of service as the rate for Rule of
70 Retirees with 25 — 30 Years of Service.
1..0
Estimated 2025 Rate Adjustments (C49 )
Active Employee Contribution Changes $1,715,510
Retiree Contribution Changes )
Total Cost to Board $1,665,181
*Retiree changes are the result of adopting the Florida
Retirement System Health Insurance subsidy change from
$5 to $7.50, per year of creditable service
Estimated 2025 Total Projected Impact
(C30 & C49)
Active Employee Contribution Changes $1,715,510
Benefit Plan Changes $901,749
Retiree Contribution Changes )
Total Cost to Board $2,566,930
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Questions ?
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