1. HEALTH INSURANCE PROGRAM

2. Health Insurance Program Overview  Self-Insured (claims processed by Third-Party Administrator, currently BCBS)  Separately Maintained Health Insurance Fund  Employee Clinic  High-Deductible Health Plan and Co-Pay Plan  Stop-Loss Insurance Protects against large claims above $125,000

3. Action Items  Stop-Loss Insurance  Change carrier from SunLife to Blue Cross Blue Shield  Change in deductible from $125,000 to $150,000

4. Stop-Loss Insurance  Limits City’s financial claims liability  Currently with SunLife  Sought quotes from alternate providers

5.  At the $125,000 deductible level, both carriers propose an increase CurrentSUNLIFE RENEWAL $125,000 Ded. BCBS PROPOSED $125,000 Ded. QuoteChangeQuoteChange $288,935$407,597$118,662 41.1% $387,781$98,846 34.2% Stop-Loss Insurance Quotes -- $125,000 Level

6. CurrentSUNLIFE RENEWAL $150,000 BCBS PROPOSED $150,000 QuoteChangeQuoteChange $288,935$339,281$50,346 17.4% $318,201$29,267 10.1% Stop-Loss Insurance Quotes -- $150,000 Level

7. Large-Claim History Stop-Loss Insurance Quotes YEARCLAIM 1CLAIM 2CLAIM 3CLAIM 4Add’l cost if at $150k 2012$283,938$400,790$327,662$75,000 2013137,208$136,252$265,585$48,460 2014136,976$11,976 2015$462,606$175,637$169,363$151,260$100,000 $235,436 Average Per Year: $58,589

8. Stop-Loss Insurance Quotes BLUE CROSS 125K BLUE CROSS 150K $387,781$318,201 Savings between $125k and $150k Deductible $69,580 Historical Average Cost of Claim Increase $58,589

9. Recommendations  Change to Blue Cross Blue Shield/HM Life for Stop Loss Coverage  Increase Deductible from $125,000 to $150,000

10. QUESTIONS???