TITLE
Title
2016 MEDICARE ADVANTAGE PLAN FOR MEDICARE-ELIGIBLE RETIREES
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SPONSOR
Sponsor
John Dean
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BACKGROUND
Background
UHC proposed a rate increase from $203.12 to $225.46 to maintain the existing plan benefits for the Medicare Advantage Plan for 2016. They also offered three alternative plans. The following options are submitted for consideration:
1. Maintain the current Medicare Advantage plan and have the County absorb the increase of $22.34 per month for 30-year Medicare-eligible retirees.
2. Adopt one of the alternate plan designs and have the County absorb the increase.
3. Pass along all or part of the increase for either plan to retirees.
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BUDGET IMPACT
Budget Impact
The budgetary impact will depend on the option choosen by the County. The current plan and alternate options are listed in detail on the attached Medicare Advantage Plan for 2016 spreadsheet.
Choosing to maintain the current plan design and having the County absorb the increase will result in an increased annual budgetary impact of approximately $217,145 ($108,572 for this budget year). Currently 30-year, post-65 retirees pay no premium.
Option 1 will result in an increase of approximately $105,754 ($52,877 for this budget year).
Option 2 will result in an increase of approximately $28,674 ($14,337 for this budget year).
Option 3 will result in an increase of approximately $119,750 ($59,875 for this budget year).
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REQUESTED ACTION
Requested Action
Review and consider the following amendments to the 2016 Medicare Advantage Plan for Medicare Eligible Retirees: 1)Approve maintaining the current Medicare Advantage Plan and absorb the rate increase of $22.34 per month for 30-year Medicare-eligible retirees; OR 2) Approve one of the alternate plan designs and have the County absorb the premium increase.; OR 3) Approve passing along all or part of the increased plan rate for either plan to retirees.
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