Benefit Taskforce Review and Recommendation March,

Assignment Complete a benchmarking study Recommend a plan to reduce cost of benefits by 5% of employer contribution Revise the philosophy of compensation Maintain high quality health coverage for employees and their families Implement June 1,

Benefit Taskforce Judy Korb – ChairJeff Anderson Becky CentlivreJudi Guzzy Ellen FisherJustin Stanley Shannon FordRon Palcic Mitch BorchersTom Hughes Renee PortmanTerri Kurtz Terry HoranTeresa Schmitz Lori VogelsbergCandy Finch Jerry Zimmerman (ex-officio) 3

Benefits Benchmarking League Board Schools15 Large/Xlarge Regional Schools 10 Large/Xlarge Other Schools 8 Local Educational Institutions 7 Responses were received from 23 of the 40 institutions representing a 58% response rate, most notably with 80% of the League Board Schools responding 4

Benefits Benchmarking Summary 6 institutions (including JCCC) provide some form of flex- credits for benefits 14 institutions provide individual health coverage at no cost to the employee 11 institutions require employee contributions toward dependent health coverage 7 institutions require employees to contribute to all categories of health coverage 3 institutions provide full health coverage for individual and dependent health care 5

5% Baseline Full-time employees – 1,000 Flex Credits (1, x 1,000 x 12) $13,307,208 FY09 Subsidy (from flex credit reduction) 971,280 FY10 Subsidy (from budget) 623,818 7% 403(b) Contribution 4,010,671 Total$18,921,977 $945,649 - Targeted Cost Savings 6

Cost-sharing 7 $945,649 /1,000 employees/12 months = $78.80 per employee per month

Considerations Medical Premiums Adjusted Premiums HMO, PPO and HDHP Plans KPERS Compensation Base Salary Flex Credits 7% Employer Contribution 8 0.4% increase

Premium Adjustments 0.4% initial increase in premium 1% decrease in premium due to slight plan design change True premiums reflected for HMO, PPO and HDHP plans Decrease in subsidy by $945,649 (5% cost savings) Increase in subsidy of $77,959 due to BCBSKC reimbursement 9

Benefit Plan Recommendation Decreased Subsidy Employees enrolled in the JCCC medical plan will pay $78.80/month for premiums through salary reduction or flex credits. Employees opting out of the JCCC medical plan will pay $85.80/month through flex credits for a new wellness plan which includes a $78.80 fee. Flex credits will remain the same ($1,108.94/mo) The JCCC 403(b) contribution will remain the same (7%) 10

Monthly Premium - HMO 11 HMO 2010/ /2012 Flex Credit $1,108.94$1, Single HMO Delta Dental Life Ins. ($50K) Balance $ $ Flex Credit$1, $1, Family HMO- 1, , CIGNA Dental Life Ins ($50K) Balance$ $

Monthly Premium - PPO 12 PPO 2010/ /2012 Flex Credit $1,108.94$1, Single PPO Delta Dental Life Ins. ($50K) Balance$ $ Flex Credit$1, $1, Family PPO- 1, , CIGNA Dental Life Ins ($50K) Balance-$ $ 59.61

Monthly Premium –HDHP and Opt Out 13 HDHP 2010/ /2012 Flex Credit NA $1, Family HDHP NA CIGNA Dental NA Life Ins. ($50K) NA Balance $ OPT OUT Flex Credit$1, $1, A Healthier You NA CIGNA Dental Life Ins ($50K) Balance$1, $

Opt-Out / /2012 OPT OUT Flex Credit$1, $1, A Healthier You NA CIGNA Dental Life Ins ($50K) Balance$1, $ $78.80 cost sharing 7.00 A Healthier You $85.80

BCBS WELLNESS A Healthier You BCBSs A Healthier You includes a comprehensive, integrated program of services to promote optimal health outcomes. Assessment Onsite health screenings Online Health Risk Appraisal (HRA) Interventions Online coaching modules Telephonic lifestyle coaching Online education resources Onsite and webinar education classes Prevention programs Case management Incentives The Points to Blue Incentive Program 15

Summary Employees are contributing to the cost of medical (subsidy dropped from 20% to 8%) Flex credits will cover cost of full-family coverage (HDHP) Premiums adjusted by BCBSKC reimbursement and plan design changes Wellness focus 16

17 QUESTIONS?