Insurance Committee 2016-17 May 9, 2017

Medical Renewal Projection Projected Reserve Balance $ 2,215,324 PY 17 Projected Funding 21,164,161 PY17 Funding + Reserve 23,379,485 PY18 Projected Expenses 22,135,236 PY18 Required Reserve 3,095,900 PY 18 Funding + Reserve 25,231,137 Projected Required Increase (+7.9%) (1,851,652)

Plan Year 2016-17 Premiums May 23, 2017

Plan Design Change Options $100 x2 Family $200 x2 Family $300 x2 Family Increase deductibles $316,051 $629,214 $945,265 *Note: Illustrated deductibles assume corresponding increase on the out-of-network benefit relative to OON multiplier. $500 x2 Family $1,000 x2 Family $1,500 x2 Family Increase OOP Max $75,063 $133,074 $170,188 *Note: Illustrated out-of-pocket maximums assume corresponding increase on the out-of-network benefit relative to OON multiplier. Note: illustrated savings calculations assume static enrollment and does not account for enrollment behavior as a result of premium changes.

Medical Premiums 2016-17 Premiums 2017-18 Premiums High Option Individual Only $ 696.31 $ 742.27 Individual/Spouse $ 1,485.14 $ 1,583.16 Individual Children $ 1,269.80 $ 1,353.61 Individual Family $ 2,060.03 $ 2,195.99 Base Option $ 535.76 $ 571.12 $ 1,124.90 $ 1,199.14 $ 964.20 $ 1,027.84 $ 1,553.47 $ 1,656.00 CDHP Option $ 442.69 $ 490.50 $ 929.68 $ 1,030.09 $ 796.79 $ 882.84 $ 1,283.77 $ 1,422.42

Dental Premiums 2016-17 Premium 2017-18 Premium Aetna Dental Individual Only $ 38.40   Individual/Spouse $ 74.11 Individual /Child(ren) $ 85.77 Individual/Family $ 119.67 Family Dental Service $ 53.33 $ 53.97 $ 90.80 $ 91.89 $ 108.06 $ 109.36 $ 134.99 $ 136.61  Cigna Dental $ 16.93 $ 30.90 $ 35.99 $ 53.81

Vision Premiums 2016-17 Premium 2017-18 Premium Individual Only $ 7.56 $ 8.24 Individual/Spouse $15.74 $17.16 Individual /Child(ren) $14.81 $16.14 Individual/Family $22.99 $25.06

$100 Deductible Increase across all plans Unbalanced rate increase Assumptions $100 Deductible Increase across all plans Unbalanced rate increase High and Base: 6.6% CDHP: 10.8% District Contribution Rate Increase High, Base and CDHP EE only: 7.5% CDHP (ES, EC, EF): 12%

District Contributions Base, High and CDHP EE only (Proposed) 7.5% increase Full Half 2016-17 2017-18 If no medical or Individual only medical elected $567.00 $609.00 $283.50 $304.50 If Individual/Spouse medical elected $804.00 $864.00 $402.00 $432.00 If Individual/Children medical elected $661.00 $710.00 $330.50 $355.00 If Individual/Family medical elected $1,059.00 $1,138.00 $529.50 $569.00

District Contributions CDHP (Proposed) 12% increase Full Half 2016-17 2017-18 If Individual/Spouse medical elected $804.00 $900.48 $402.00 $450.00 If Individual/Children medical elected $661.00 $740.32 $330.50 $370.16 If Individual/Family medical elected $1,059.00 $1,186.08 $529.50 $593.04

Individual Enrollments Out of Pocket Examples Individual Enrollments 16/17 Monthly EE out of pocket 17/18 Monthly Monthly Difference Annual Difference CDH, Aetna PPO, Vision $0.00 CDH, Family Dental, Vision CDH, Cigna HMO, Vision Base, Aetna PPO, Vision $14.72 $8.24 ($6.48) ($77.81) Base, Family Dental, Vision $29.65 $23.81 ($5.84) ($70.13) Base, Cigna HMO, Vision High, Aetna PPO, Vision $175.27 $179.38 $4.11 $49.34 High, Family Dental, Vision $190.20 $194.95 $4.75 $57.02 High, Cigna HMO, Vision $153.80 $157.91

16/17 Monthly EE out of pocket Out of Pocket Examples Family Enrollments 16/17 Monthly EE out of pocket 17/18 Monthly EE out of pocket Monthly Difference Annual Difference CDH, Aetna PPO, Vision $367.43 $381.07 $13.64 $163.64 CDH, Family Dental, Vision $382.75 $398.01 $15.26 $183.07 CDH, Cigna HMO, Vision $301.57 $315.21 Base, Aetna PPO, Vision $637.13 $662.30 $25.17 $302.08 Base, Family Dental, Vision $652.44 $679.24 $26.79 $321.52 Base, Cigna HMO, Vision $571.27 $596.44 High, Aetna PPO, Vision $1,143.68 $1,202.30 $58.61 $703.27 High, Family Dental, Vision $1,159.00 $1,219.24 $60.23 $722.71 High, Cigna HMO, Vision $1,077.83 $1,136.44

BOE Recommendations Section 125 Dental-ASO Family Dental Services Move from ASIFlex to BeneFlex Dental-ASO Remain with Aetna Increase annual max from $1,000 to $1,500 No change to premiums or benefits/copays Family Dental Services Increase premiums by 1.2% No changes to benefits/copays Vision Remain with EyeMed 9% increase to premiums No change to benefits/copays

BOE Recommendations Medical Premiums Medical Plan Design Changes To be determined by the Committee Medical Plan Design Changes Pharmacy Variable Copay Program Out of Pocket Protection Plan

Meeting Schedule Thursday, June 1: Thursday, June 15: BOE Work Session BOE Presentation and Adoption