CCSSO Staff Meeting

1
CCSSO Health Benefits
2
Our Current Plan

• CareFirst Blue Cross Blue Shield
• Duel Enrollment
• Point of Service (must use in network services)
• PPO (may go to any doctor who participates in
  blue cross network)
• Covers 72 Employees
• 49 Point of Service
• 23 PPO

3
What Our Plans Provide

• Point of Service In/Out of Network
• 100/80 Coverage
• N/A
• 2,000 OOP Max.
• Unlimited lifetime benefit
• 10-20/80 OV Co-pay
• 10, 25/35 Rx

• PPO In/Out of Network
• 100/80 Coverage
• 0/500 Deductible
• 1,500/3,000 OOP Max.
• Unlimited lifetime benefit
• 20/80 OV Co-pay
• 10, 25/35 Rx

4
Our Current Monthly Costs

• Point of Service
• Employee 235.65
• 11.78 monthly EE cont.
• EE Child 354.05
• 17.76 monthly EE cont.
• EE Spouse 448.78
• 31.98 monthly EE cont.
• Family 708.10
• 70.91 monthly EE cont.

• PPO
• Employee 287.14
• 63.26 monthly EE cont.
• EE Child 431.52
• 95.13 monthly EE cont.
• EE Spouse 546.83
• 130.02 monthly EE cont.
• Family 862.83
• 225.59 monthly EE cont.

Renewal Rates for the same plan will cost an
additional
5
47
6
25
Capped by CareFirst for preferred customers
7
Whats That Look Like in Real

• Point of Service
• Employee 235.65
• New Rate 294.56
• EE Child 354.05
• New Rate 442.56
• EE Spouse 448.78
• New Rate 530.98
• Family 708.10
• New Rate 885.13

• PPO
• Employee 287.14
• New Rate 358.93
• EE Child 431.52
• New Rate 539.28
• EE Spouse 546.83
• New Rate 683.54
• Family 862.83
• New Rate 1,078.54

8
As Discussed Last Year CCSSO Cant Absorb an
Increase Like That
9
Alternatives Considered

• Option 1 Shop Health Insurance coverage to
  another provider.
• Option 2 Shop for less expensive coverage plans
  within the CareFirst Plans.

• Option 3 Not offer health care coverage.

10
Alternatives Considered

• Option 1 Shop Health Insurance coverage to
  another provider.
• Option 2 Shop for less expensive coverage plans
  within the CareFirst Plans.

11
Option One

• Shopped plan with other providers for competitive
  rates
• Aetna 42 increase in current cost
• United Health Care 38 increase in current cost
• Great West 30 increase in current cost
• Guardian 17 increase in current cost
• MAMSI 15 increase in current cost
• Bids also solicited from Fortis, Hartford,
  Jefferson Pilot, MetLife, Mutual of Omaha,
  Principal, Sun Life, and UniCare

12
Option Two

• Various different CareFirst options ranging from
  an additional 3-25
• No attractive options
• Tried some creative solutions to come up with the
  best alternative for staff

13
Solution
11.9 ?
14.5 ?
Keep Dental with MetLife No Increase to Dental
14
What do CCSSO Staff Want from Health Care System?

• Willing to pay higher premiums for better health
  care
• Want lower (or lowest possible) deductibles
• Willing to pay more to maintain current benefits
• Dont want to sacrifice current level of benefits
• Willing to pay a 50 deductible of Rx if it means
  keeping overall costs lower
• Based on a survey of CCSSO staff

15
Whats That Mean to an Employees Paycheck When
Entire Amount Passed on to Staff

• Point of Service
• Individual 12.96 pci
• 5.44 gt 18.40
• Ind. Child 19.48 pci
• 8.20 gt 27.68
• Ind. Spouse 24.69 pci
• 14.76 gt 39.45
• Family 38.95 pci
• 32.71 gt 71.66

• PPO
• Individual 19.17 pci
• 29.20 gt 48.37
• Ind. Child 28.75 pci
• 43.91 gt 72.66
• Ind. Spouse 36.50 pci
• 60.01 gt 96.51
• Family 57.60 pci
• 104.12 gt 161.72

16
Considerations for the Future

• Continue to pass entire cost on to staff
• Pass some of the cost on to staff as budget or
  premium increases allow
• Look for alternative carriers
• Explore pay as you go option.

17
Pay As You Go

• Could do this year only a 3 overall increase
• Keeps premiums low (scenarios where CCSSO could
  reduce current premium levels).
• Employees become responsible for portions of
  health care costs as they are needed pay as
  you go
• Only available on PPO
• Considerations
• High deductibles can look scary.
• Gamble (could prove extremely cost effective or
  pay more than currently).

18
Some Examples

• Whats my paycheck going to look like come July
  1, 2004?

19
Employee Only, POS, 35,000
Employee Only, PPO, 35,000
20
Employee Spouse, POS, 50,000
Employee Spouse, PPO, 50,000
21
Family, POS, 60,000
Family, PPO, 60,000