2020 CCOGA POOL RENEWAL Small Group Meeting August 7, 2019 CCOGA - - PowerPoint PPT Presentation

2020 CCOGA POOL RENEWAL

Small Group Meeting August 7, 2019

• I. SWWC Joint Powers Board of Directors
• II. CCOGA Pool Advisory Committee
• Darin Balken – Prairie Lakes Youth Programs - Director
• Rollie Neilson – Kandiyohi County - Commissioner
• Susan Skattum – Rock County - Assistant County Administrator
• Sharon Hansen – City of Marshall - City Administrator
• Stacy Knott – Renville County – Labor Representative
• Crystal Johnson – City of Granite Falls - City Administrator
• III. SWWC Pool Management Staff
• Doug Deragisch – Senior Director of Administrative Services
• Mari Wagner – Insurance Specialist
• Kari Bailey – Regional Wellness Specialist
• Bobbie Carmody – Administrative Assistant
• IV. BCBS Client Executive – Geoff Martinson

CCOGA Pool Governance and Management

1) Reduce Premium Volatility 2) Reduce the Rate of Healthcare Premium Inflation 3) Develop and Implement Statewide Best Practices 4) Reduce Regional Redundancy and Expense of Third Party Administration

What is Expected Through Increased Statewide Collaboration and Rating Methodologies?

• 100.0%

0.0% 100.0% 200.0% 300.0% 400.0% 500.0% 600.0% 700.0%

2017 Needed Increases (Prior to MHC)

4

2018 Needed Increases (Year 1 of MHC)

• 100.0%

0.0% 100.0% 200.0% 300.0% 400.0% 500.0% 600.0% 700.0%

2019 Needed Increase (Year 2 of MHC)

• 100.0%

0.0% 100.0% 200.0% 300.0% 400.0% 500.0% 600.0% 700.0%

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2020 Needed Increase (Year 3 of MHC)

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• 100.0%

0.0% 100.0% 200.0% 300.0% 400.0% 500.0% 600.0% 700.0%

CCOGA Pool by Groups

2019

100+ 51-99 11-50 2-10

2018

100+ 51-99 11-50 2-10

2017

100+ 51-99 11-50 2-10

8

2020

100+ 51-99 11-50 2-10

9

22% 12% 65%

MHC Pool by Groups

100+ 51-99 1-50

CCOGA Pool by Contracts

2019

100+ 51-99 11-50 2-10

2018

100+ 51-99 11-50 2-10

2017

100+ 51-99 11-50 2-10

10

2020

100+ 51-99 11-50 2-10

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71% 15% 14%

MHC Pool by Contracts

100+ 51-99 1-50

CCOGA Pool by Total Current Premium

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$15,237,342 $7,212,864 $5,526,666 $1,527,096 100+ 51-99 11-50 2-10

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50 100 150 200 250 $0 $100 $400 $500 $1,200 $1,500 $1,850 $2,250 $2,500 $2,600 $2,800 $3,500 $5,000 $6,350 1 1 1 2 1 1 1 1 1 1 3 4 2 2 26 20 47 37 167 31 30 49 14 78 114 223 179 97

SWWC CCOGA Renewal Plans and Contracts Large Groups

# Groups # Contracts

Percentage of contracts $1000 or less: 12%

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50 100 150 200 250 300 $1,850 $2,000 $2,250 $2,600 $2,800 $3,375 $3,500 $5,000 $6,350 $6,650 $6,750 $6,900 1 2 1 2 1 2 3 7 2 1 1 1 15 32 70 49 23 39 37 255 12 28 35

SWWC CCOGA Renewal Plans and Contracts Medium Groups

# Groups # Contracts

Percentage of contracts $1000 or less: 0%

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20 40 60 80 100 120 $0 $300 $500 $750 $1,000 $1,200 $1,400 $1,500 $1,850 $2,000 $2,250 $2,350 $2,500 $2,800 $3,375 $3,500 $5,000 $6,650 2 1 8 2 3 2 6 2 2 2 4 1 1 2 8 2 3 1 19 5 32 49 34 5 25 9 22 22 31 26 2 12 119 53 24

SWWC CCOGA Renewal Plans and Contracts Small Groups

# Groups # Contracts

Percentage of contracts $1000 or less: 28%

JPA Board Approved 2020 Formula

100+ Contracts

MIN -7.5% to MAX 8.5% (-2% between MIN/MAX)

1 Paying More; 5 Paying Less; 1 NA

51-99 Contracts

MIN -5.0% to MAX of 9.5% (-1.5% between MIN/MAX)

2 Paying More; 6 Paying Less

11-50 Contracts

MIN 0.0% to MAX of 13.5% (-1% between MIN/MAX)

5 Paying More; 10 Paying Less

2-10 Contracts

MIN 3.5% to MAX of 17% (-1% between MIN/MAX)

14 Paying More; 14 Paying Less

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• 30.0%
• 10.0%

10.0% 30.0% 50.0% 70.0% 90.0% 110.0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43

2020 CCOGA Renewal Needed vs. Formula Applied Small Groups

Needed Formula

Formula History

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2020 2019 2018 2017* MIN MAX MIN MAX MIN MAX MIN MAX 100+

• 7.5%

8.5% 0.0% 15.0%

• 5.0%

19.0% 1.0% 19.5% 51-99

• 5.0%

9.5% 2.5% 19.0% 0.0% 29.0% 3.5% 24.5% 11-50 0.0% 13.5% 4.0% 25.0% 2.5% 38.0% 6.0% 29.5% 2-10 3.5% 17.0% 6.0% 28.0% 6.0% 43.0%

*Last year of old rating methodology & we didn't differentiate groups under 51

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SWWC Small Group ‘Level Rating’ Concept

• To reduce the year-to-year rate fluctuation a concept has emerged to provide the entire small group with the

same rate increase.

• Example:
• This year the current premium of all groups with 50 or less contracts was $7,053,762
• The total needed income for 2020 is $7,642,209
• This is an 8.3% needed premium increase.
• The ‘Level Rating’ for 2020 would apply a 7.8% with a needed of 8.3% increase to all groups regardless of what

they calculated.

• MIN 0% MAX 13.5% and MIN 3.5% MAX 17%
• This would be used ongoing to help with the rate fluctuation from year-to-year but will evaluate the increase

based on yearly needed increase minus any Pool subsidy applied.

• In 2019 it would have been: 12.6% with a needed of 15.9%
• MIN 4% MAX 25% and MIN 6% MAX 28%
• In 2018 it would have been: 14.9% with a needed of 20.8%
• MIN 2.5% MAX 38% and MIN 6% MAX 43%
• In this model there will be NO individual renewal booklets. Data will only be reported as an aggregate.
• Could possibly lead to a MHC statewide level rating methodology or even a limited number of common plans?

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• 40.0%
• 20.0%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43

2020 CCOGA Renewal With Use of 'Level Rating'

Needed Level Rates

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SWWC Small Group ‘Level Rating’ Concept

Thoughts/Questions/Concerns?