HEALTH INSURANCE PROGRAM Health Insurance Program Overview Historically

HEALTH INSURANCE PROGRAM

Health Insurance Program Overview Historically experienced double-digit premium increases through 2010 Developed Interdisciplinary Team Turned Program Upside Down in 2011 � Self-Insured � Added Clinic Concept � Developed High-Deductible Health Plan Promoted consumerism and saving

Medical Plan Costs $3, 984, 000 $4, 000 $3, 733, 000 $3, 612, 000 $3, 445, 000 $3, 500, 000 $3, 174, 000 $3, 116, 929 $2, 986, 393 $2, 941, 128 $3, 000 $2, 804, 991 $2, 500, 000 Actual Costs $2, 000 Projected Fully Insured $1, 500, 000 $1, 000 Per $500, 000 Employee $7, 411 $0 Final Year Fully Insured $7, 082 $8, 697 $7, 623 $9, 362 $8, 151 $9, 762 $7, 605 $10, 145 Includes ALL Medical Plan Program Costs 2014 *Projected Costs Based on Aon Hewitt Health Value Initiative 2013 (national average for healthcare premium increases) 2011 2012 2013

Proposed Changes Stop-Loss Insurance Carrier Ancillary Coverage Carrier

Stop-Loss Insurance Limits City’s financial claim’s liability � Pays claim costs over $125, 000 per claim Currently with BCBS Sought quotes from alternate providers

Stop-Loss Insurance Quotes Current $354, 804 BCBS Proposal Sun. Life Proposal Quote Change $417, 342 $62, 538 $279, 934 ($74, 870) Sun. Life Proposal Provides a Decrease in Rate Recommend change to Sun. Life for Stop Loss

Ancillary Coverages Includes: � City-Provided Life Insurance and AD&D � City-Provided Long-Term Disability Insurance � Employee Purchased Voluntary Dental � Employee Purchased Voluntary Life Insurance � Employee Purchased Short-Term Disability Current Carrier – Lincoln Financial

Ancillary Coverages Employee-Paid Coverage 2015 Rates the Same for Both Providers � Dental � Voluntary Life � Short-term Disability

Ancillary Coverage Quotes Life & AD&D Lincoln Financial Proposal Mutual of Omaha Proposal Current/Renew al Change Quote Change $24, 447 0 $29, 685 $5, 238 Long-Term Disability Lincoln Financial Proposal Mutual of Omaha Proposal Current/Renew al Change Quote Change $35, 777 0 $48, 161 $12, 384

Ancillary Coverages Recommend Change to Mutual of Omaha for Ancillary Coverage � Mutual of Omaha previous provider � Mutual of Omaha superior customer service experience – both Employer and Employee related

Recommendations Change to Sun. Life for Stop Loss Coverage Change to Mutual of Omaha for Ancillary Coverage Total Net Savings: $57, 248