Salary Policy Recommendations 21 GOVERNOR DAUGAARD'S RECOMMENDATION - - PDF document

Agency Presentation 2 - FY13 - BOP

Saturday, February 11, 2012 10:57 AM

FYll Total Compensation Comparison

SD and Surrounding States

Salary Hourly Average Benefits Hourly Average S4500 S40.00 S3500

• S3000

S25.00

• S2000

S15.00 S1000 $5.00

• $-

SO MT NO WY NE MN IA

• {$1813+$8.03)

(S20 07+$9 59) ($22.23+S9.71) (S22 73+$11 .72) ($23 62+S1111) (S24 68+$10 98) ($25 91+S13 52) Central States Compensation Association Benefits Hourly Average includes all benefits including health, life, retirement, leave, and more

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Salary Policy Recommendations

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GOVERNOR DAUGAARD'S RECOMMENDATION FOR STATE EMPLOYEE COMPENSATION PACKAGE

(page 20, Governor's Budget or page 45 Summary of Governor's Budget)

PACE ADJUSTMENT TO JOB WORTH:

The Governor is recommending that the Performance and compensa on Equny (PACE) system eslabh shed 11 FY1990 be conllnued to mclude 2 5% adjustments to employees 'MlO are paid under the )Ob-worth of their pay range The Governor is also

recommending up to a ma>cimum of 7% adjustment to employees ,n the Career Banding families established in FY2010 to move them

towards market ACROSS-THE-BOARD INCREASE: The Governor is recommending tnat all permanent s ate employees rece,ve a 3% pay Increase. Subtotal Executive Branen Boa rd o Regents Legislative Branen Judicial Branen Constitutional Offices

GENERAL

FUNDS $2,6S2,611

$3,469,567 3,874,735 121,084 793,976 255 502 18,534,864 FEDERAL

FUNDS $1 ,886,00S

$2,998,692 2,052,622 3,363 58350 15,113,027 OTHER

f.!lliQ!

$2,911,970

$4,533,660 5,081 956 61,131 169 566 19,846,313 For FY2013. tne employee compensauon package was distnbuted to agencies In the Governors recommended budget TOTAL

FUNDS $7,450,S86

S11 ,021 ,919 11 ,009.313 121,084 858.470 483 418 123,494,204

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FY2012

• 5°/o one time payment not added to the

base

• Retention
• Morale

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South Dakota State Employee Health Plan

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FY13 Projected Health Plan Inflation

• $8,200,000 total medical inflation
• (amount needed FY13)

How will this be funded?

• $3,300,000 recovered from Plan

Administration Changes

• $2,400,000 recovered from member

contributions thru deductibles and co-pays

• $2,500,000 appropriation request
• $948,848 in General Funds

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Health Plan Membership

Membership July 2011 Employees Retired Employees COBRA Dependents Total Enrolled Plan Member Employee Average Age 2011 34.9 45.8 12,524 556 203 12,910 26,193

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Health Plan Members

Health Plan Enrollment

~

.s:,

"' ... ~

.........

20,000 ~-._

v __

.,v

..._.'----------------

18,000 16,000 14,000 12,000 10,000 8,000 · 6,000 - 4,000 · 2,000

a----

$300 Deductible/Copay Plan

$1 ,000 Plan

$2 ,000 Plan

~ ~

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Service Partners of Health Plan

Sanford Partners in Prevention

Annuu HeaJ1h creenings DAKOTACARE Provider ~etwork Clums Processing Flexible pending Accounts

Express Scripts

Prescription l'ietwork Formulary& Maintenance List Health Assessment Health Advising Health Coaching Condition ~lanagement

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Claims by Cost Segment - FY11

Paid Paid Claims Claims Paid Claims Paid No Claims Under

$1 ,500- $10,000-

Claims

Criteria

Submitted

$1,500 $9,999 $49,999 $50,000+

Claim Dollars

so

$5,721 ,518 524,446,606 $29,594,556 $34,506,328

Percent of Claim Dollars

0.0% 6.1% 25.9% 31 .4% 36.6%

Members

5,800 16,178 6,235 1,453 271

Percent of Members

19.4% 54.0% 20.8% 4.9% 0.9%

Claims Cost per Member

$0.00 $353.66 $3,920.87 520,362.90 $127,329.62

Average Claimant Age

31 1 31 9 41 7 47.6 52.1

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Most Costly Conditions

• Forms of chronic Heart Disease
• Newborns with complications
• Oncology
• Degenerative joint disease
• Back Conditions
• Postoperative infections

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Cost Drivers

• Increasing inflation
• Increasing costs of new medical treatments
• Increasing costs of specialty pharmacy drugs
• Increasing costs of hospital stays
• Increasing utilization
• Federal mandates

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FY13 Proposed Administrative Changes

Member Impact

• Deductible increase from $300 to $500
• Deductible decrease from $2000 to $1800
• Modification of medical and pharmacy plan co-

payments Administrative Impact

• Case Manager assigned to High Cost Claimants
• Management of Emergency Department use at facilities
• Pre and post payment claim audits
• Direct contracts with providers
• Movement to Wellness

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Comparison of FY11 Employer Contributions

with Surrounding States - Health Insurance

$14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000

• South
• ntana

Nath

mnescta sxaska Wyoming Iowa Dakota

D kota

Central States Compensation Association

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Health Plan Full Accrual Financial Statement

State Employee Self Insured Health Plan Full Accrual Basis Financial Statements FY 2011 FY 2012 FY 2013 Unaudited Estimated Estimated Revenue Contributions 10 Plan EmplOyer Paid $78,734,012 $78,040,861 $80,337,566

• Retiree. COBRA, and Employee Paid ror Dependents

$19,224,469 $19,504,061 $19,504,061 Federal Ear1)' Retirement Reinsurance Program $973,223 $650,000 Administratil.e Fee $138,725 $145168 S145, 168 Interest Re1enue $786,699 $600,000 $600,000 Rerund of Prior Years Claims 51 ,984,528 $2,300.000 $1 .350.000

Total Re1enue

$101 ,841,656 $101,240,090 $101,936,795 Expenses Claims $94,574,971 591,642.174 $91,888,080 Employer Ure Claims $390,000 $550 000 S550,000 Administration $7,466,890 $7,733,751 $9,460,770 Total Expenses $102,431 ,861 $99,925.925 $101 .898,850

Cunren Year o.er/(Underreco1eiy)

($590,205) $1,314,165 $37.945 Prior Year O\et'/(Underrec01.el)') $665,367 S75, 162 $1,389,327 Cumulatil.e 01er/(Unclerreca1eiyr $75,162 $1,389.327 S1 427 272 ·cumulam,e 01er/ (Underreco1e1y) 1s tne analyslS or me revenues and expenses since tile beginning of 1ne program.

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FY13- Appropriation Request

• Appropriation Request - FY13

$2,563,215

• Represents a $200 per employee increase
• FY12 rate= $6,135
• FY13 proposed rate= $6,335

General Funds

Federal Funds Other Total $ 948,848 $ 598,814 $1,015,553 $2,563,215

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