Slide 1

2014 Insurance & Wellness Benefits Committee

Ancillary Renewal & History(Basic Life & AD&D, LTD, Dental & Vision)22012 7% decrease in costs for same benefitsDental - RelianceVision - VSPLife & AD&D & LTD - Reliance2013 0% same benefitsDental GuardianVision VSPLife & AD&D & LTD - Guardian2014 0% same benefitsDental GuardianVision VSPLife & AD&D & LTD - Guardian

Employee Basic Life, Accidental Death & Dismemberment (AD&D)Long Term Disability (LTD)East Central College pays for a Basic Life, AD&D and LTD policy on all full-time employees.

2014 Employer Annual Contributions $32,119$13,111 Basic Life$2,384 AD&D$16,624* LTD

*LTD contribution is based on salary, therefore, this amount is subject to change if there are salary increases.33DentalCoverage TypeEmployee Monthly Cost Employee Only$0.00Employee & Spouse$30.80Employee & Child(ren)$67.72Family$101.384Guardian there are no plan or cost changes to the current benefits.

2014 Annual Employer Contributions - $95,467.68

246 Employees/Retirees enrolled does not include spouse/dependents 4Vision5Coverage TypeEmployee Monthly Cost VSP (current Plan)20142015*Employee Only$0.00$0.00Employee & Spouse$3.72$3.84Employee & Child(ren)$3.93$4.05Family$10.14$10.45VSP renewal no plan changes +3% *4-year rate lock VSP renewal change plan design -3% 4-year rate lockIncrease material copayment from $25 to $30

Change carrier to Guardian 0% 1-year rate lockOut-of-network benefit allowance

2014 Employer Annual Contributions $18,928.08

254 Employees/Retirees enrolled - does not include spouse/dependents 5

Flexible Spending Account (FSA) Medical & Dependent Care62012 ASI Flex No change Administration Cost paid by College - $1700

2013 ASI Flex No change Administration Cost paid by College - $1700

2014 Changed to Guardian No Administration CostDependent Care Participants 4 EmployeesMedical Contribution of $275.76 paid by College for NonBJC Coverage Participants 10 EmployeesMedical Contribution paid by Employee 13 ParticipantsDependent Care Max Contribution $5000Medical FSA Max Contribution $2500Why do we need a Broker?7Cost is 1.5% of Premium Broker costs can range from 3% - 10+%

53 Compliance/Law Changes in the last 18 monthsStay currentProvide resourcesInterpret

Negotiation LeverageLast year renewal started at +8.9% ended up at -3%SBI has 275 other groups with carriers ECC none

Assist with Plan Administration and Claim Resolution ExperiencePrivacy Issue (protect employees)

Analyze reportsGroup specific and industry normsIdentify areas that need improvement

Evaluate renewal factorsTrend (was inflated on Anthem renewal)Plan designsCalculate HRA risk levels

Wellness Programs8Health Screening Complete Blood Draw by CHC Wellness2010 91 Participants No cost to College or Participant2012 - 82 Participants No cost to College or Participant2013 - 100 Participants No cost to College or Participant2014 70 Participants - $20 Cost per Employee to the College, No cost to ParticipantWalking Challenge Since 2010 No Cost to College Participants pays fee, earns paid time offEmployee Assistance Program New Directions New 2013Cost per month per full-time employee is $1.57 Annual cost is $4125.969Medical Renewal History2014 Medical Plan and Network OptionsPlan OptionsDeductibleCoinsurance Base Plan $50080%Buy-Up Plan$0100%HSA Plan$2500100%10 Each plan offers two network options:

Blue Access Choice (BAC)

Blue Preferred Select (BPS)10Anthem NetworksBlue Access Choice (BAC) Network

Includes BJC Providers.

Blue Preferred Select (BPS) Network

Does NOT include BJC Providers. 11BJC Providers:

MO Baptist St. Louis, St. Louis Childrens Hospital, Barnes, Christian Northeast and Northwest, and doctors with Washington University. The BPS Network does include Missouri Baptist Sullivan Hospital. 11Medical Plan OptionsIn-Network BenefitsBenefitsBase PlanBuy-Up PlanHSA PlanDeductible Individual Family $500$1,000$0$0 $2,500*$5,000 Coinsurance 80%100%100%Out-of-Pocket Maximum**Individual Family $2,500$5,000$1,000$2,000$3,500***$7,000***12* 2014 - ECC will Fund $2,362.32 which is the difference between the premium cost of BAC Base Plan and BPS High Deductible Plan

**Includes copayments and coinsurance.

*** Prescriptions also apply to the Out-of-Pocket Maximum for the HSA Plan. 12Medical Plan Options In-Network Benefits13BenefitsBase PlanBuy-Up PlanHSA PlanPhysician Copay$20$20Deductible then CoinsuranceSpecialist Copay$40$40Deductible then CoinsuranceUrgent Care Copay$50$50Deductible then CoinsuranceEmergency Room Copay$200$200Deductible then Coinsurance13Medical Plan OptionsIn-Network BenefitsPrescription DrugBase PlanBuy Up PlanHSA PlanTier 1 $10$10Deductible then $15Tier 2 $35$35Deductible then $30Tier 3 $60$60Deductible then $501414IRS HSA Contribution Limits2014 Contribution LimitIndividual Coverage$3,300Family Coverage$6,550Catch up (Age55 to 65)$1,0001515East Central College2014 HSA Contribution 16BPS NetworkBAC NetworkMonthly Contribution$196.86$196.86Monthly Network Incentive*$24.68-Total Annual Contribution**$2,658.48$2,362.32* For employees that have BPS Base Plan $22.98 is put into an FSA.

** For employees who enroll in additional coverage, the FSA or HSA contribution will be applied to spouse, dependent or family premium.

ECCs contribution into your HSA goes towards the 2014 IRS contribution limit.2014 Anthem Rates17Renewal BPS NetworkRenewal BAC NetworkQty.Base PlanQty.Buy-Up PlanQty.HSA PlanQty.Base PlanQty.Buy-Up PlanQty.HSA PlanEmployee14 $565.641 $732.8657 $367.0839 $588.623 $773.4064 $391.76Employee + Spouse 0 $1,156.320 $1,512.122 $723.98 0 $1,216.980 $1,607.665 $771.46Employee + Child(ren)2 $1,047.160 $1,369.56 2 $650.16 0 $1,100.840 $1,456.027 $692.94Family2 1,587.560 $2,075.34 3 $989.56 0 $1,676.220 $2,206.866 $1,053.98 Employee Monthly Premium$10,181.52$732.86$23,493.12$22,956.18$2,320.20$32,124.32Dependent Monthly Premium$3,006.88$0.00$3,147.40$0.00$0.00$7,980.08Total Monthly Premium$13,188.40$732.86$26,640.52$22,956.18$2,320.20$40,104.40Total $105,942.56Annual Employee Premium$1,101,698.40Annual Dependent Premium$169,612.32Annual Total$1,271,310.722015 Anthem Renewal Rates18Renewal BPS NetworkRenewal BAC NetworkQty.Base PlanQty.Buy-Up PlanQty.HSA PlanQty.Base PlanQty.Buy-Up PlanQty.HSA PlanEmployee14 $731.151 $947.30 57 $474.49 39 $760.853 $999.70 64 $506.39 Employee + Spouse 0 $1,494.660 $1,954.57 2 $935.81 0 $1,573.070 $2,078.07 5 $997.19 Employee + Child(ren)2 $1,353.560 $1,770.30 2 $840.39 0 $1,422.950 $1,882.06 7 $895.69 Family2 $2,052.080 $2,682.59 3 $1,279.10 0 $2,166.690 $2,852.59 6 $1,362.37 Employee Monthly Premium$13,160.70$947.30$30,367.36$29,673.15$2,999.10$41,523.98Dependent Monthly Premium$3,886.68$0.00$4,068.27$0.00$0.00$10,314.98Total Monthly Premium$17,047.38$947.30$34,435.63$29,673.15$2,999.10$51,838.96Total $136,941.52Annual Employee Premium$1,424,059.08Annual Dependent Premium$219,239.16Annual Total$1,643,298.24Annual Premium Difference$371,987.52Annual Percentage Difference29.3%Medical Cost BAC Network19Monthly Cost to the Employee ElectionBAC HSA PlanBAC Base PlanBAC Buy-Up PlanEmployee Only$0.00$0.00$184.78Employee & Spouse$182.84$628.36$1,019.04Employee & Child(ren)$104.32$512.22$867.40Family $465.36$1,087.60$1618.24The BAC Network does include BJC Providers. *East Central College pays $588.62 toward every employees health plan. 19Medical Cost BPS Network20Monthly Cost to the Employee ElectionBPS HSA PlanBPS Base Plan *BPS Buy-Up Plan *Employee Only$0.00$0.00$144.24Employee & Spouse$135.36$567.70 $923.50Employee & Child(ren)$61.54$458.54 $780.94Family $400.94$998.94 $1,486.72The BPS Network does not include BJC Providers. * Employees that enroll in additional coverage in the base or buy-up plan, $22.98 has already been deducted from the monthly premium.

** East Central College pays $588.62 toward every employees health plan.20Medical Benefit Changes Past 3 Years212012 Switched from UHC to Coventry

Changed from $2000/$4000 Non-Embedded HSA deductible to $2500/$5000 Embedded Deductible

Rx changed from $10/$25/$50 to $8/$30/$55

Office visit change from $15/$25 to $20/$40

2013 - Coventry

Rx changed from $8/$30/$55 to $10/$35/$60

2014 - Anthem

No Plan changesChoice between BJC and non BJC networks

Options to Consider22Change Plan DesignIncrease Deductible and Copayments

Change Employer and Employee ContributionsReallocate funding

Implement Health Reimbursement Account (HRA)Employer funds down in-network deductible

Plan Design Change Savings Examples23Base Plan Change

Deductible: $1000/$2000 = $36,500 (2.5%)$1500/$3000 = $65,750 (4.5%)

Copayments: $25/$50 = $5,800 (0.4%)$30/$60 = $13,150(0.9%)

Rx: $10/$35/$75 = $5,800 (0.4%)

Reducing HSA contributions to $1,500 annually Approximate Savings $125,000 (8.5%)

Designating Non-BJC Plan the base plan Approximate Savings $58,000 (4.0%)BJC would be available for a buy-up cost

Note: 18 out of 267 members used BJC Providers

Savings Options24Contributions*Current Premium Renewal 29.3%Budget 5%Difference 24.3%College $ 1,461,679.35 $ 1,889,951.40 $ 1,534,763.32 $ 355,188.08 Annual Contributions*Option 1 10%Option 215%Option 320%Option 425%College $ 1,743,783.46 $ 1,670,699.50 $ 1,597,615.53 $ 1,524,531.56 Employee $ 146,167.94 $ 219,251.90 $ 292,335.87 $ 365,419.84 Per Pay Period Contributions*Option 1 10%Option 215%Option 320%Option 425%College $ 351.00 $ 336.29 $ 321.58 $ 306.87 Employee $ 29.42 $ 44.13 $ 58.84 $ 73.55 Contributions are based on 207 enrolled employees* Includes HSA ContributionsHealth Reimbursement Account (HRA)Current Plan In-Network DeductibleIn-NetworkDeductible Change$500$2500$2500$500025How it WorksClaim Amount$2500Employee Pays$500ECC Pays$2000Balance$025HRA FundingRenewal 29.3%$1,889,951.40$2500 Deductible Savings8%Savings$151,196.11238 Deductibles at Risk @ $2250$535,500ECC Estimated Risk20%$107,10025%$133,87515%$80,3252626Questions27