Arkansas State University Benefits Update October 10, 2017 Thank you Julie for inviting me to speak today about the ASU benefit plan. Before we get started could I see by a show of hands how many of you are on the faculty senate? How many on staff senate? How many of you are members of the fringe benefits committee. Great. I’m happy you are all here today. I wanted to start by sharing some information about my role at the ASU System office as well as my background in higher education, healthcare and insurance. I started working in benefits in 1983 at the corporate office for the largest bank in Washington State which had about 6,000 employees. In 1991 I started my career in higher education at UAMS also in benefits. During my tenure at UAMS I was a benefits counselor, benefits manager, and director of employee services. I also worked for three years as the Assistant to the Vice Chancellor for Finance and Administration, and about four years the administrator for the Physical Medicine and Rehabilitation Department within the College of Medicine. When I started at UAMS in 1991 we had about 7,000 employees and when I left we had over 10,000. My last job before I joined ASU was working for TIAA-CREF as a consultant and as the branch office manager for the Arkansas branch. My experience in benefits, higher ed, finance, insurance and working in a clinical department has given me exposure to benefits from several different perspective, which I have found helpful in my current role with ASU. On a personal note I have been married 30 years, and have two sons – one graduating next month and the other is a permanent PhD student at UC San Diego studying biomedical sciences. Jennifer Smith, MBA Associate Vice President for Benefits

FY 2018 A-State Budget

Benefit Costs 15% of A-State Budget FY 2015 to present Last rate increase 1/1/2014 Plan changes 1/1/2016 Changed TPA 1/1/2017

ASU Health Care Cost Drivers The primary drivers of projected increased health care cost for 2018 include: Medical inflation Large cost claimants - As of August 31, 2017, 32 Claimants @ $3.3M vs. August 31, 2016, 22 Claimants @ $1.9M (An increase of $1.4M on 11 claimants) (Astate 24/16) Specialty drugs Stop Loss increase estimate at 20% - due to increase in large claims. Fund Balance on 9/30/2017 at $3,011,821 vs $4,321,013 as of 9/30/2016 (A decrease of $1.3M) Required Reserve as of 6/30/2017 was $1,416,373

Funding Options Employer Contributions Employee Contributions (no increase since 1/1/2014) Plan Changes – increased cost sharing to higher dollar users (2% of members utilize 43% of plan dollars)

Funding Options

Out of Pocket Cost (In network) 2010 Today Proposed Out-of-pocket Costs Outpatient Visits $30 PCN $30 Preventive Urgent Care (deduct/coins.) Specialist (deduct/coins.) Mental Health (deduct/coins.) Pharmacy $10/$30/$50 copay Other Copays $50 ER (plus deduct/coins.) 50% chiropractic Deductible and Coinsurance $500/20% Maximum Out-of-pocket $1500 - includes deductible, coinsurance, excludes co-pays and pharmacy $35 PCP $0 Preventive $35 Urgent Care $50 Specialist $35 Mental Health $12/$35/$60 $60 ER (plus deduct/coins.) $20 chiropractic $650/20% $2,500 - includes deductible, coinsurance, co-pays and pharmacy $12/$50/$80 $200 ER $35 chiropractic $150 Outpatient Services $300 Hospital Admission $850/20% $3,000 – medical includes deductible, coinsurance, and medical co-pays $1,500 pharmacy – includes pharmacy co-pays

How do we compare?

Arkansas Health Plan Comparison

Contact Information Jennifer Smith jennifersmith@asusystem.edu Ext. 1003 Or 501-660-1003 Website: www.asusystem.edu/mybenefits