Legislation Details

File #: 25-5022    Version: 1 Name:
Type: Financial Authorization Status: Passed
File created: 8/4/2025 In control: Commissioners Court
On agenda: 8/14/2025 Final action: 8/14/2025
Title: Request for approval to implement an Employer Group Waiver Plan for prescription drug coverage for Medicare retiree members covered under the group health plan.

Primary Department: Management and Budget

Primary Department Head/Elected Official: Daniel Ramos

 

Secondary Department: Human Resources and Talent

Secondary Department Head/Elected Official: Sakita Douglas

 

Regular or Supplemental RCA: Regular RCA

Type of Request: Financial Authorization

 

Project ID (if applicable): N/A

Vendor/Entity Legal Name (if applicable): N/A

 

MWBE Contracted Goal (if applicable): N/A

MWBE Current Participation (if applicable): N/A

Justification for 0% MWBE Participation Goal:  N/A - Goal not applicable to request

 

Grant Indirect Costs Rate (if applicable): N/A

Justification for 0% Grant Indirect Costs Rate (if applicable): N/A - Not a grant item

 

Request Summary (Agenda Caption):

title

Request for approval to implement an Employer Group Waiver Plan for prescription drug coverage for Medicare retiree members covered under the group health plan.

end

 

Background and Discussion:

Harris County currently offers prescription drug coverage to Medicare retiree members through its self-funded health plan administered by Aetna and a Part D plan for those enrolled in the fully insured Medicare Advantage Prescription Drug (MAPD) plan through Humana. Prescription benefits are identical to employee coverage for members not enrolled in the MAPD plan. For these members, the Centers for Medicare & Medicaid Services (CMS) allows employer sponsored plans to offer Part D coverage that closely aligns with what is offered to their employees through what is called an Employer Group Waiver Plan (EGWP). 

 

An EGWP would provide savings to the county’s health plan through additional subsidies provided by CMS and manufacturer discounts. Disruption to members would be minimal since an EGWP enables plan sponsors to closely replicate their current plan design. Therefore, it is recommended the county implement Aetna’s fully insured EGWP called SilverScript for Medicare members not enrolled in Humana’s MAPD plan. If approved, Human Resources and Talent (HRT) will coordinate with Purchasing, the County Attorney’s Office, and Universal Services on implementation including any necessary contract requirements, Peoplesoft program modifications, and the go-live date.

 

 

 

 

Expected Impact:

Harris County’s benefits consultant, Segal, is projecting $9M in annual savings by implementing the EGWP. Aetna ran a disruption analysis using 2024 claims data, and 95% of all prescriptions filled would have either seen no change or a lower copayment under the SilverScript plan. 2% of the prescriptions would have changed from the preferred tier on the formulary to non-preferred; therefore, the members would have paid more out-of-pocket. 3% of the prescriptions were not on the SilverScript formulary, but an alternative drug was identified for a vast majority of them. It should be noted that a transition period of 90 days is available to ensure members receive their prescriptions.

 

Alternative Options:

Commissioners Court could continue to provide prescription drug coverage through the county’s self-insured health plan.

 

County Strategic Plan Goal:  N/A

County Strategic Plan Objective: N/A

Justice/Safety Initiative (Goal 1):  N/A

Infrastructure Initiative (Goal 2):  N/A

Economy Initiative (Goal 3): N/A

Health Initiative (Goal 4): N/A

Climate/Resilience Initiative (Goal 5): N/A

Housing Initiative (Goal 6): N/A

 

Additional notes related to the Strategic Plan:

 

Prior Court Action (if any):

Date

Agenda Item #

Action Taken

 

 

 

 

Location:

Address (if applicable): N/A

Precinct(s): Countywide

 

Fiscal and Personnel Summary

Service Name

Benefits & Wellness

 

 

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Existing Budget

 

 

 

 

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Total Existing Budget

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Additional Budget Request (Requires Fiscal Review Request Form)

 

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Grants - Proposed Budget (For Grants Items only)

 

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Local Match Source - Additional Budget Request: Choose an item.

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Grant Funds Applied for/Awarded (Total)

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Personnel (Fill out section only if requesting new PCNs)

 

Current Position Count for Service

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Additional Positions Request

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Total Personnel

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Anticipated Court Date: 8/14/2025

Anticipated Implementation Date (if different from Court date): 1/1/2026

 

Emergency/Disaster Recovery Note: Not an emergency, disaster, or ARPA related item

 

Contact(s) name, title, department: Sarah Acosta, Director of Benefits & Wellness, Human Resources and Talent; Shain Carrizal, Deputy Executive Director of Risk Management, Office of Management and Budget

 

Attachments (if applicable): N/A