Benefits

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Our mission to our customers is to design, develop and administer quality, cost-effective benefit programs, responsibly, consistently and fairly.

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Benefit News

Premium Increases for 2012

This year, we struggled with the same challenge being faced throughout the country by public and private employers alike. How do we continue to provide access to strong yet affordable health benefit coverage for our employees, retirees and their families when costs are rising and Commission revenues are flat or declining? Over the past five years, our group insurance costs have grown from $25 million to $36 million or 44%. However over the same time period, the Commission held employee/retiree premium rates flat by utilizing surplus reserves in our Group Insurance Fund. What that means is that the premiums paid were less than the expenses incurred. The difference was covered by “savings” generated in prior years. Although we knew that premium rates would have to increase to market levels to cover actual costs, we had planned to phase in the increases over a couple of years; however, due to a sharp increase in claims, a declining active employee base and an increasing retiree population the “savings” will be depleted during FY 2012.

During the past months we have been reviewing the health plans we offer with the assistance of the benefits consulting firm Aon-Hewitt Consulting. Aon-Hewitt Consulting has determined that our total medical and prescription plan premiums must increase on average by 44% to reflect market rates. In an effort to reduce the impact on our employees, retirees and the Commission’s resources, we evaluated options to partially offset the plan costs. Many of these changes require negotiations with union representatives from MCGEO and the FOP Lodge #30. Due to the extreme time constraints of Open Enrollment, those changes could not be incorporated prior to the January 2012 effective date of our new plan year. As a result, we had to proceed with the full recommended premium increases for the medical and prescription plans; however, there will be no increases for the dental, vision, life, accidental death & dismemberment, and long-term disability plans. The Commission has approved the following rate changes effective January 1, 2012

• UnitedHealthcare Choice POS - 48.8%
• UnitedHealthcare Select EPO – 29.8%
• UnitedHealthcare Medicare Complement – 1.0%
• CIGNA Open Access EPO – 50.1%
• Caremark Prescription – 52.0%
• UCCI Dental – 0%
• Vision Service Plan – 0%
• Life insurance – 0%
• Accidental Death & Dismemberment – 0%
• Long-term Disability – 0%

The only other approved change for 2012 is to the prescription drug plan. We plan to implement the Maintenance Choice program during the first half of 2012. This program limits participants to 2 fills (instead of the current 3 fills) at retail pharmacies other than CVS/Caremark before requiring mail order (or pay a penalty). The Maintenance Choice program also allows participants to obtain mail order quantities and pay mail order co-pays at any CVS/Caremark pharmacy. More information about this program will be communicated at a later date.

Even with significant medical and prescription premium increases, the Commission rates will continue to compare favorably with rates paid by employees and retirees of Prince George’s and Montgomery County governments. Part of the reason for the favorable comparison is the current premium cost share. The cost share represents the portion of the total premium paid by the employer and the portion paid by the employee. Commission employees/retirees pay a much lower portion of their benefits costs than either of the two county governments’ employees/retirees. For 2012, there will be no change to the premium cost share.

We are committed to work earnestly to provide the best affordable health benefits for our workforce. We look forward to working in partnership with MCGEO and the FOP Lodge #30 to negotiate in good faith changes that will result in a sustainable benefits program. To that end, we will continue our discussions on health benefits over the next year and provide you with updates through the Update newsletter, inSite and memoranda.

Contacting Benefits