2019/2020 Actuary Report and Rates

Actuary Report Overview 17/18 Claims and admin. costs 17/18 Net total of claims Trend those costs out for 18 months 10% Medical, 12% RX, 5% Dental, 5% Vision and 3% Admin. costs Prior to this year’s report, Stop Loss, County Pharmacy and Vision were all employer/County paid expenses in the rate calculations – this year all those costs are included and shared with employees/retirees. This was done because of the Board’s new employer rate calculation. COBRA Rates were increased sharply because of the new employer premiums implemented 7/1/18 - this rate study took those rates into the premium calculation for the first time. Additional factors added only to the employer premium, outside of the report, are employer paid life insurance and employee assistance program ($345K). Retiree transfer should be 4.1m now. With new rates it should be 4.2m. Currently at 4.0m.

Actuary Report Overview Continued Employer and Employee rates are calculated with a 1/1 effective date. The employer rate is typically implemented 6 months later at the beginning of the new FY. Proposed employee rates have a 3.5% ($6 monthly) increase for single coverage and a 3.4% ($14) increase for family coverage. Single = $179 Family = $420 Six months of the proposed employee/retiree rates equal $73,944 in increased premium revenue. Twelve months = $147,888 Retiree premiums OV65 reduced because the reduction in the PMI renewal. Employee/retiree rates were increased 3% on 1/1/18. Prior to that, 2017 rates were frozen from the 2016 level. The same occurred in 2015. We are at a 81.6% employer and a 18.4% employee/retiree percentage share of the costs based on premiums. Employer rates increased 6.8% ($52) single and 4.8% ($86) family. Employer rate increases premium revenue by $1,040,832 over 12 months.

Actuary Report Overview Continued

Actuary Report Overview Continued

Actuary Report Overview Continued