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AI- 3292   9. B. 3.    
BOC Regular
Meeting Date: 08/20/2020  
2021 Medicare Advantage PPO Retiree Health Care Plan Renewal
Submitted For: Kim Archambault FROM: Kim Archambault, HR Director, Human Resources
Department: Human Resources  

Information
RESOLUTION:
Resolved, the Calhoun County Board of Commissioners does hereby approve the 2021 Group Benefit and Rate Agreement for the Medicare Advantage PPO plan as presented, and authorizes the HR Director to sign the Agreement.
RECOMMENDATION:
It is recommended that the Calhoun County Board of Commissioners does hereby approve the 2021 Group Benefit and Rate Agreement for the Medicare Advantage PPO plan as presented.
BACKGROUND:
The Medicare Advantage PPO is a fully-insured health care plan currently being offered to Calhoun County retirees that are post-65 and eligible for Medicare. This plan requires an early renewal due to CMS (Center for Medicare Services) requirements for reporting and enrollee notification.  The Group Benefit and Rate Renewal Agreement is effective for the 2021 calendar year and reflects a 17.7% decrease from the 2020 rates, with no plan design changes recommended.
ALTERNATIVES:

The Board could choose to discontinue this plan, however, it is the only plan currently provided that allows a retiree to permanently reside out of state.  The other post-65 retiree health plan being offered (BCNA) has a six month Michigan residency requirement.

SUMMARY:
 

Fiscal Impact
BUDGETARY IMPACT:
The monthly plan cost for 2021 is $399.36 and is a 17.7% decrease from the 2020 rates. This equates to a $85.90 monthly decrease for a retiree member currently enrolled in this plan. There will be no budgetary impact to the County general fund because County retirees pay the cost of the premium, less any fixed discount they already receive per policy 361-2 (retirement) based on years of service. Road Department retirees are budgeted outside of the general fund and there will be a small savings depending on the cost-sharing level of the retiree that varies upon retirement date.
Attachments
2021 MAPPO Renewal

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