2020 Health Insurance Renewal November 21, 2019
2019 Health Insurance Breakdown • Current Plan Design: Blue Cross Blue Shield of Texas PPO EE Biweekly ER Biweekly Total Monthly Coverage # of employees Premium Premium Premium Employee Only $7.50 $299.42 127 $664.99 Employee + Child 46 $152.02 $476.61 $1,362.03 Employee + Spouse $246.14 $581.68 14 $1,793.60 Employee + Family 55 $343.19 $690.01 $2,238.60 HSA EE Biweekly ER Biweekly Total Monthly Coverage # of employees Premium Premium Premium Employee Only 9 $5.00 $252.81 $558.59 Employee + Child 2 $124.38 $403.67 $1,144.11 Employee + Spouse 0 $202.43 $492.93 $1,506.62 Employee + Family 0 $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 Average 80.1% Average includes plan value to 55 other cities located primarily in the DFW metroplex Comparison City 82.9% Average Addison PPO 88.2% Addison HSA 79.7% Addison’s plans are richer than the average of its comparison’s cities. 5 11/13/2019
Benchmark for PPO Plans Benefit Benchmark Comparison Town of Addison Lowest Highest Average Cities In Network Deductible - $1,500 $1,400 $500 $500 $3000 Individual In Network Deductible - $3,000 $2,883 $1,000 $1,000 $9,000 Family Out of Network Deductible - $4,000 $3583 $1,000 $1,000 $6,000 Individual Out of Network Deductible - $8,500 $7,917 $2,000 $2,000 $12,000 Family 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 Comparison Town of Lowest Highest Average Cities Addison In Network Deductible - $2,250 $2,704 $2,700 $1,500 $5,000 Individual In Network Deductible - $4,750 $5,484 $5,400 $2,000 $10,000 Family Out of Network Deductible - $5,325 $6,631 $5,250 $3,500 $10,000 Individual Out of Network Deductible - $11,300 $13,763 $10,500 $7,000 $20,000 Family In Network Out of Pocket $5,100 $3,869 $3,000 $1,350 $7,000 Max – Individual In Network Out of Pocket $10,200 $10,957 $6,000 $2,700 $14,000 Max - Family Coinsurance 20% 20% 20% 20% 40% Seed Money $654 individual $750 individual $500 $500 individual $1,000 individual $1,222 family $1,500 family individual $500 family $2,000 family $850 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 Average of Average of Comparison Comparison Town of City % of Overall Funding Rate Cities 2017 Cities 2018 Addison Employee Only 91% 89% 97% Employee + Family 77% 76% 66% 9 11/13/2019
2019 Benchmarking of Dependent Contributions: % By City (compared to Addison’s PPO $500 Plan) Town of Addison City of Allen Coverage Tier City of Frisco City of McKinney $500 plan $750 plan $1,000 plan $500 plan $16.25 $106 $95 $122 Employee Only $533.30 $466 $424 $419 Employee + Spouse $329.38 $428 $415 $378 Employee + Child(ren) $743.58 $516 $660 $582 Employee + Family
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 Total Monthly Employee Biweekly Employee Monthly Total Monthly Coverage Premium Premium Premium Premium by Town $662.04 Employee Only $678.29 $7.50 $16.25 $1,059.89 Employee + Child $1,389.27 $152.02 $329.38 $1,296.17 Employee + Spouse $246.14 $533.30 $1,829.47 $1,539.79 Employee + Family $2,283.37 $343.19 $743.58 HSA Total Monthly Employee Biweekly Employee Monthly Total Monthly Coverage Premium Premium Premium Premium by Town $10.83 $558.93 Employee Only $569.76 $5.00 $269.49 $897.50 Employee + Child $1,166.99 $124.38 $438.60 $1,098.15 Employee + Spouse $1,536.75 $202.43 $612.93 $1,305.10 Employee + Family $1,918.03 $282.89
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