2016 Benefits Renewal Presentation Summary
This document provides a summary of the 2016 benefits renewal presentation to the Special Administrative Board. It includes updates on medical, pharmacy, dental, vision, life insurance, and disability coverage, along with recommendations from the Joint Benefits Committee. The scenario outlines the estimated annual premiums, employee responsibilities, and district responsibilities for various coverage aspects.
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Presentation Transcript
2016 Benefits Renewal Presentation to the Special Administrative Board Edmond T. Heatley, Ed.D., Chief Human Resources Officer & USI Midwest August 11, 2015
2016 Benefits Renewal Update Medical and Pharmacy: Did not have rate guarantees for the January 1, 2016 Renewal Dental: Rate guarantee cap of 8% for January 1, 2016 renewal. Vision, Basic Life/AD&D, Voluntary Life, Short Term Disability and Long Term Disability: In the 3rd year of a 3 year rate guarantee that was effective January 1, 2014. Update on the District s Wellness Program Next Steps
Renewal Recommendations of Joint Benefits Committee (JBC) The Committee is comprised of representatives from Local 420 Active and Retiree groups; Local 148; Local 44; the PSRSSTL Retirement office, Finance and Human Resources. The Committee met on July 15, 2015. Recommendations 1. Medical - There is a 4% decrease in the rates for 2016. There is a rate cap of 12.9% for the January 1, 2017 renewal. The Affordable Care Act fees are included. (Coventry Health Care) 2. Pharmacy - There is an estimated increase of 22.9% due to an escalation in Specialty Utilization and Costs and overall rise in prescription utilization (Express Scripts). 3. Dental There is an increase is 3.5% (Delta Dental of Missouri) This rate was negotiated down from the initial 8% renewal cap, saving the District approximately $72,000. For the January 1, 2017, the rate cap will be based on the claims loss ratio.
District Responsibility Renewal Scenario Renew All current vendors. All medical and pharmacy copays continue to count towards the OOP Maximum. TOTAL Estimated Annual Premium Employee Responsibility District Responsibility Coverage Medical Pharmacy Wellness Dental Vision Basic Life and AD&D Voluntary EE & Dep Life Short Term Disability Long Term Disability EAP Carrier Coventry Express Scripts Coventry Delta of MO VBA CIGNA CIGNA CIGNA CIGNA Coventry / MH Net Current $23,723,916 $8,474,000 Included above Included above $1,601,295 $113,857 $288,561 $236,749 $673,646 $546,343 $1,413 Proposed $22,774,896 $10,418,247 % Change -4.0% 22.9% 0.0% 3.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Current $3,019,151 $885,136 Included above Included above $493,784 $48,468 $0 $236,749 $0 $0 $0 Proposed $2,898,532 $1,088,257 % Change -4.0% 22.9% 0.0% 3.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Current $20,704,765 $7,588,863 Included above Included above $1,107,511 $65,389 $288,561 $0 $673,646 $546,343 $1,413 Proposed $19,876,365 $9,329,990 % Change -4.0% 22.9% 0.0% 3.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% $1,657,332 $113,857 $288,561 $236,749 $673,646 $546,343 $1,413 $511,079 $48,468 $0 $236,749 $0 $0 $0 $1,146,254 $65,389 $288,561 $0 $673,646 $546,343 $1,413 Total Premium Total Savings/Cost Percent of Change $35,659,779 $36,711,044 $1,051,265 2.9% $4,683,288 $4,783,084 $99,796 2.1% $30,976,492 $31,927,961 $951,469 3.1%
District Responsibility Per Employee Per Month 2010 to 2016 District Responsibility 2014 vs. 2016 - All Coverages 2010 2011 2012 2013 2014 2015 2016 District Responsibility $28,509,576 $27,822,986 $27,249,754 $28,260,446 $27,583,817 $30,799,608 $31,927,961 Active Employee Headcount 3,751 3,639 3,227 3,393 3,602 3,618 3,641 Per Employee Per Month (pepm) $633.38 $637.15 $703.69 $694.09 $638.16 $709.41 $730.75 % Change From Prior Year 0.6% 10.4% -1.4% -8.1% 11.2% 3.0%
SLPS Wellness Program Update SLPS Wellness Program with Coventry Health Care Health Risk Assessments will be held in August 2015. Walking Program: Plan to launch in late October 2015 with a hiking theme. The District is participating in the American Diabetes Association Step Out Walk on October 10, 2015. 2015 Applications have been submitted as a healthy workplace to: American Heart Association for the Fit Friendly Award Business Health Coalition for the Business Health Culture Award The District was awarded Gold and Platinum American Heart Association Fit Friendly Awards
Next Steps SAB Consideration of Recommendations Respectfully request approval of the 2016 Benefit Plans at this meeting so that the employee communication and enrollment process can begin
