HEALTHCARE COSTS MESA’S STRATEGIES TO HELP CONTROL THEM

MESA’S STRATEGIES Contribution Philosophy - Established a consistent (80/20) contribution philosophy Contracts – Re-bid major contracts  Pharmacy Benefit Manager (saved $2.7 Million)  Utilization Mgt. (saved $10,000)  Employee Assistance Program (saved $7,000)

MESA’S STRATEGIES  Out-Of-Network Claims - Applied allowable cost model (saved $200,000)  Chiropractic Visits – Limited number of visits (saved $69,000)  Claims Auditing – Audited large claims (saved $300,000)  Employee Education  Out-of-Network costs  Generic Drugs

MESA’S STRATEGIES Wellness Center - Can an employer sponsored Wellness Clinic reduce healthcare costs??  Early intervention saves costs  Reduced specialty care visits  Advocacy model – “right care, right time”  National medical model is fee-for-service  Vaccines (higher utilization/lower vaccine costs)

WELLNESS CENTER  Reduce Rx burden (generic drugs)  Create a high performance network  Chronic disease management  DOT and pre-hire drug screen savings  Light WC medical treatment savings  Convenient access to primary care

WELLNESS CENTER  Increase employee morale  Reduced sick days  Enhanced recruiting and retention  Reduced Urgent Care and Emergency Room utilization

WELLNESS CENTER STEPS  Feasibility study  Support from management, Council  Benchmark other organizations  Determine what services you want  Determine location  Release RFP  Build-out  Roll-Out