2020 Health Insurance Renewal November 21, 2019 2019 Health - - PowerPoint PPT Presentation

2020 Health Insurance Renewal

November 21, 2019

2019 Health Insurance Breakdown

• Current Plan Design: Blue Cross Blue Shield of Texas

PPO Coverage # of employees EE Biweekly Premium ER Biweekly Premium Total Monthly Premium Employee Only 127 $7.50 $299.42 $664.99 Employee + Child 46 $152.02 $476.61 $1,362.03 Employee + Spouse 14 $246.14 $581.68 $1,793.60 Employee + Family 55 $343.19 $690.01 $2,238.60 HSA Coverage # of employees EE Biweekly Premium ER Biweekly Premium Total Monthly Premium Employee Only 9 $5.00 $252.81 $558.59 Employee + Child 2 $124.38 $403.67 $1,144.11 Employee + Spouse $202.43 $492.93 $1,506.62 Employee + Family $282.89 $585.00 $1,880.42

History of Health Insurance Renewals

Year Final Renewal Rate Increase 2005 14.33% 2006 23.80% 2007 7% 2008 0% 2009 5.3%; negotiated down to 0% 2010 17.0%; negotiated down to 10% 2011 17.7%; negotiated down to 9% 2012 8%; negotiated down to 1.49% 2013 14%; negotiated down to 4.95% 2014 7.52%; negotiated down to -3.3% 2015 0% 2016 7.01% 2017 5%; negotiated down to 0% 2018 0% 2019 7%; negotiated down to 2.5%

Plan Design Opportunities

• Opportunities:
• Align with Market
• Lower Premium Cost for Addison & Employees
• Proactive Plan Management

Town of Addison Plan Value

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Average 80.1% Comparison City Average 82.9% Addison PPO 88.2% Addison HSA 79.7% Average includes plan value to 55 other cities located primarily in the DFW metroplex Addison’s plans are richer than the average of its comparison’s cities.

Benchmark for PPO Plans

Benefit Benchmark Average Comparison Cities Town of Addison Lowest Highest In Network Deductible - Individual $1,500 $1,400 $500 $500 $3000 In Network Deductible - Family $3,000 $2,883 $1,000 $1,000 $9,000 Out of Network Deductible - Individual $4,000 $3583 $1,000 $1,000 $6,000 Out of Network Deductible - Family $8,500 $7,917 $2,000 $2,000 $12,000 Out of Pocket Max – Individual $5,000 $4,664 $2,000 $2,000 $6,000 Out of Pocket Max - Family $11,500 $8,578 $4,000 $4,000 $13,000 PCP Visit $25 $27 $20 $20 $60 – 40% Specialist Visit $50 $42 $20 $20 $80 – 40% Emergency Room Copay $200 $161 $50 $50 $500 – 40% Urgent Care Copay $50 $48 $35 $30 $100 – 40% RX Copay $10/$30/$60 $15/$25$50 $15/$30/$50 $0/$30/$75 $15/$60/$100

Benchmark for High Deductible Plans

Benefit Benchmark Average Comparison Cities Town of Addison Lowest Highest In Network Deductible - Individual $2,250 $2,704 $2,700 $1,500 $5,000 In Network Deductible - Family $4,750 $5,484 $5,400 $2,000 $10,000 Out of Network Deductible - Individual $5,325 $6,631 $5,250 $3,500 $10,000 Out of Network Deductible - Family $11,300 $13,763 $10,500 $7,000 $20,000 In Network Out of Pocket Max – Individual $5,100 $3,869 $3,000 $1,350 $7,000 In Network Out of Pocket Max - Family $10,200 $10,957 $6,000 $2,700 $14,000 Coinsurance 20% 20% 20% 20% 40% Seed Money $654 individual $1,222 family $750 individual $1,500 family $500 individual $850 family $500 individual $500 family $1,000 individual $2,000 family

Current HSA Contributions

• Employee Only - $500
• Employee/Spouse - $700
• Employee/Child - $600
• Employee/Family - $850

Half of the above amount is contributed when an individual enrolls and the balance is contributed in 6 months if they have completed the Health Risk Assessment.

Funded Rate Percentage

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City % of Overall Funding Rate Average of Comparison Cities 2017 Average of Comparison Cities 2018 Town of Addison Employee Only 91% 89% 97% Employee + Family 77% 76% 66%

2019 Benchmarking of Dependent Contributions: % By City (compared to Addison’s PPO $500 Plan)

Coverage Tier Town of Addison $500 plan City of Allen $750 plan City of Frisco $1,000 plan City of McKinney $500 plan Employee Only

$16.25 $106 $95 $122

Employee + Spouse

$533.30 $466 $424 $419

Employee + Child(ren)

$329.38 $428 $415 $378

Employee + Family

$743.58 $516 $660 $582

Future Consideration

• Challenges:
• Volatile Health Insurance Market
• Plan Management Disruption
• Strategic Plan Design Options for the Future

2020 Health Insurance Plan Renewal

• Proposed 2020 Health Insurance Increase: 4.3%
• Negotiated Best And Final:
• 2% Increase Over Current If Addison Doesn’t Market and Renews

With No Plan Design Change

• Overall Premium Increase of $76,330 Over Current Rates

Renew As Is: No Plan Changes Addison Absorbs Full 2% Increase

PPO Coverage Total Monthly Premium Employee Biweekly Premium Employee Monthly Premium Total Monthly Premium by Town Employee Only $678.29 $7.50 $16.25

$662.04

Employee + Child $1,389.27 $152.02 $329.38

$1,059.89

Employee + Spouse $1,829.47 $246.14 $533.30

$1,296.17

Employee + Family $2,283.37 $343.19 $743.58

$1,539.79

HSA Coverage Total Monthly Premium Employee Biweekly Premium Employee Monthly Premium Total Monthly Premium by Town Employee Only $569.76 $5.00

$10.83 $558.93

Employee + Child $1,166.99 $124.38

$269.49 $897.50

Employee + Spouse $1,536.75 $202.43

$438.60 $1,098.15

Employee + Family $1,918.03 $282.89

$612.93 $1,305.10

Discussion