DeKalb County reviews employee benefits package, projects $133 million health spend and seeks renewal approval

DeKalb County staff on the Employee Relations and Public Safety (IRPS) Committee on Tuesday provided an overview of the county—s employee benefits, saying the county projects a gross spend of $133 million for the plan year and currently maintains an 81/19 employer-employee cost share.

The presentation covered who is eligible for benefits, the types of plans offered, voluntary and tax-advantaged options available to employees and next steps for plan renewal and benchmarking. Staff told the committee they expect to present renewal rates for county approval in early April and hold open enrollment in the first two weeks of May.

Benefits staff said full-time regular employees are eligible for DeKalb—s pension and benefit plans; part-time employees who work at least 20 hours per week are also eligible. Dependents are eligible for coverage up to age 26. The county provides domestic partner coverage, but staff clarified this coverage applies under the term used in the county code ("same gender/gender"), and an affidavit plus shared-address documentation is required to enroll a domestic partner. Staff asked that employees notify the benefits office if a domestic partnership ends so the county can remove the domestic partner from coverage.

Core medical offerings listed by staff include HMOs, health savings account (HSA) compatible plans, a point-of-service (POS) option, dental and vision. Kaiser was described as a long-time partner and is treated as a sole-source provider because of its unique delivery model; Aetna covers Medicare-eligible retirees. Staff said the county goes out to bid about every five years and that the next procurement for core health coverage is roughly three years away.

Staff reviewed voluntary benefits available by payroll deduction: critical-illness insurance at $10,000, $20,000 or $30,000 payout levels; short-term disability with 20%, 40% or 60% income replacement after a 30-day elimination period; accident insurance with cash payouts for hospitalizations and fractures; and legal insurance (includes wills, identity-theft services and civil defense). Basic life insurance is provided at 2.25 times base pay with a $250,000 maximum and includes accidental death and dismemberment; staff said the county pays premiums for the basic life benefit (no employee cost) and the program has been employer-paid for roughly three years. Supplemental life coverage up to $1,000,000 is available but requires medical qualification.

Tax-advantaged options were explained: dependent-care flexible spending accounts carry the IRS federal maximum of $5,000, and the health-care FSA limit in the plan year is $3,200. Staff noted some benefits use a preloaded debit card for routine payments and that enrollment support will be made available on-site for employees without easy technology access.

On funding, staff said the county and administration have worked to limit premium increases; after years of limited employee pay increases and rising medical inflation, the county has moved from a historical 70/30 goal to the current 81/19 cost share. Staff said they will perform a peer-group study later in the year to compare DeKalb—s cost-share and benefit levels with other local governments and will report results to the committee. Buck Consulting actuaries are assisting with claims analysis and renewal modeling.

Next steps: staff asked to return to IRPS on March 18 or April 1 with proposed renewal rates and requested full-board approval in early April so open enrollment can occur in May. Staff also said they will provide enrollment advisors at work sites for employees who need assistance.

Minor clarifications provided during the meeting: domestic-partner enrollment requires an affidavit and proof of shared address; dependent coverage ends at 26 with COBRA as an option; the basic employer-paid life benefit is guaranteed issue; supplemental life requires medical underwriting; and the county—s projected gross health-care spend for the plan year is $133 million.

Staff provided contact information for the benefits team and listed Princess Star as the benefits team lead.

The committee did not take a formal vote or adopt changes to benefits at the meeting; staff will return with renewal figures and benchmarking data for committee and full-board consideration.