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HomeMy WebLinkAbout041508 Healthcare PlanningHealth Care Health Care City Council Briefing City Council Briefing April 15, 2008 April 15, 2008 School Board Briefing School Board Briefing April 22, 2008 April 22, 2008 Background Health Care Program Planning Health Care Program Planning ? ? Briefings on March 11 Briefings on March 11 ? ? Responses to Questions Responses to Questions ? ? City Council on March 21,2008 City Council on March 21,2008 ? ? School Board on March 29, 2008 School Board on March 29, 2008 ? ? 3-Year Strategy to Control Increasing Costs 3-Year Strategy to Control Increasing Costs ? ? Plan Design, Contributions, Medical Management, GASB Plan Design, Contributions, Medical Management, GASB ? ? Funding Funding 2 Goals Continue to: Continue to: affordable, quality healthcare Offer affordable, quality healthcareas part of a Offer as part of a ? ? competitive total compensation package competitive total compensation package Control costs Control costs ? ? Manage healthcare trend Manage healthcare trend ? ? Reduce GASB 45 liability Reduce GASB 45 liability ? ? healthy workforce Maintain a healthy workforce Maintain a ? ? best prices Achieve best pricesfor goods and services Achieve for goods and services ? ? health risks Focus on health risksthat are significant cost drivers Focus on that are significant cost drivers ? ? culture of change and accountability Promote a culture of change and accountability: Promote a : ? ? Managers, Employees, Partners Managers, Employees, Partners health awareness/education Promote health awareness/education Promote ? ? 3 Work in Progress 2007 Claims Audit 2007 Claims Audit ? ? GASB 45 Funding and Policy GASB 45 Funding and Policy ? ? Health Care Self Insurance Fund Monitoring and Health Care Self Insurance Fund Monitoring and ? ? Policy Policy 2009 Rate Setting 2009 Rate Setting ? ? DependentAudit DependentAudit ? ? Enhanced Education and Awareness Enhanced Education and Awareness ? ? 4 Additional Work Required for 3-Year Strategy Create High Deductible Health Plan with Health Create High Deductible Health Plan with Health ? ? Savings Account Savings Account Study Study ? ? Co-Insurance Co-Insurance ? ? Service years for access to retiree health care Service years for access to retiree health care ? ? Restrictions on eligibility and/or plan choices Restrictions on eligibility and/or plan choices ? ? Incentives for health behaviors/Disincentives for risky Incentives for health behaviors/Disincentives for risky ? ? behavior behavior 5 2009 Recommendations – 2009 Recommendations – Direction Requested Direction Requested City/Schools Contribution $5,400 City/Schools Contribution $5,400 ? ? No RFP on Fully Insured No RFP on Fully Insured ? ? Plan Design Changes Plan Design Changes ? ? Funded ($M) Annual GASBLiabilityGASB ARC ($M ) 2009 Recommendations Deductible on all plans (HMO plan -$100 Individual/$200 Family) $1.2$1.9$0.2 Align City retiree rates to that of School retirees$0.5$4.4$0.5 Eliminate $0 premium on HMO for employees ($10 mo)$2.0$0.0$0.0 Savings (Reduction to Cost)$3.7$6.3$0.7 *No referral required on HMO *No referral required on HMO 6