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Human Resources Department recommending the Board take the following actions regarding Health Plan Programs and Ancillary Employee Benefit Programs for the 2025 Plan Year:
1) Approve the revised 2025 Affordable Care Act compliant health plan rate card (Attachment A) in accordance with the Patient Protection and Affordable Care Act; and
2) Grant Human Resources the authority to correct any minor clerical errors or adjustments, if necessary, to the approved health plan rate cards for the 2025 health benefits plan year, as needed.
FUNDING: Countywide cost, shared between the County Departments (General Fund and Non-General Fund) and employees.
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DISCUSSION / BACKGROUND
Health Plans
On September 24, 2024, with Legistar file 24-1611, the Board of Supervisors adopted the 2025 health plan rate card for the County’s Affordable Care Act (ACA) compliant health plan.
To be considered affordable under the ACA, an employee’s contribution for self-only coverage under the lowest plan cost option available cannot exceed 9.02% of the employee’s household income for the 2025 tax year. The IRS acknowledges that the employer is typically not aware of an employee’s household income, thus permits the employer to measure the affordability of their coverage using an ACA affordability safe harbor. Under the Rate of Pay Safe Harbor, the maximum amount an employer can charge for self-only coverage is the percentage of affordability factor (affordability limit) times the employees’ lowest hourly rate of pay times 130 hours. To comply with the Rate of Pay Safe Harbor, the County calculates the employee share of premium based on California’s lowest minimum wage, which currently (and as used for the 2025 ACA compliant health plan rate card) is $16.00 per hour. As long as an offer of coverage satisfies an ACA safe harbor, the ACA employer shared responsibility will be met, avoiding penalties.
The “Blue Shield PPO 2000 ABHP High” (high deductible) plan is the County’s ACA compliant...
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