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Home My WebLink About03162010 HEALTH CARE UPDATEII I. 3/16/2010 Health Care Goals Offer affordable, quality health care as part of a total compensation package Control costs by managing the health care trend and reducing the GASB 45 liability Maintain a healthy and productive workforce Achieve best prices for goods and services Focus on health risks that are significant cost drivers Promote a culture of change and accountability Promote health awareness, education and involvement of enrollees in their health and wellness 3/16/2010 GASB 45 Liability Annual Required Contribution to Pooled Trust Fund • June 2008 - $5M City / $3.9M Schools • June 2009 - $4,777,652 City / $3,681,099 Schools 2010 GASB 45 Valuation Assumptions • Rate of Return -continue to use VRS assumption • Spousal Enrollment -Virginia Beach-Specific Mercer Completion -March 2010 Audit by City Auditor -April 2010 Payment to Trust Fund -June 2010 C~ependent Audit 2009 Audit Results • Dependent Eligibility Certificates requested for signature • Employees - 2,734 City/4,285 Schools • Retirees -Not requested as all dependents were audited • Audited • Employee - 613 City/944 Schools; Retirees - 278 City/149 Schools • Dependents Terminated -Divorce; Lack of 50%Support • Employee Plans - 1 73 City/189 Schools; Retirees - 0 City/0 Schools 2010 On-Going Efforts Requiring Proof of Eligibility • Qualifying Events -All dependents • New Hire/Open Enrollment -Dependents with different last names • Other -Targeted audits will be conducted I 3/16/2010 Wellness & Prevention Programs Disease and Condition Management . Diabetes Disease Management Program Respiratory Disease Management Program . "Partners in Pregnancy" Prenatal Program Fitness Programs . Fitness Incentive Tracking Program (FIT) WalkAbout Screenings and Vaccinations . Cancer Screening Initiatives . Flu Shot Clinics Health Screenings Personal Health Profile Support Services . Care Management . Employee Assistance Program . Tobacco Cessation Program Health Education Classes & Resource Library Weight Management . Eating for Life . Maintain Don't Gain Weight Watchers ~_ ~. " ,~.-~ ~~ rti~ ~ ~~.. Yaw GUIDE ro A HEpi THY 2010 ~~ j /Vew Initiatives Programming . Implemented new Tobacco Cessation Program -Quit for Life® by Free & Clear® • Expanded Weight Watchers offerings • Introduced new on-line Health Risk Assessment tool and designed a follow-up strategy for those with health concerns . Increased offerings for Health Screenings (cholesterol, blood pressure, BMI) . Added Tobacco Cessation Medications (including Chantix) as a covered benefit • Expanded disease management programming to include Chronic Obstructive Pulmonary Disease (COPD) -now entitled Respiratory Disease Management • Implemented screening to detect those at risk for diabetes and encouraged physician follow-up • Expanded flu shot coverage to spouses covered by our health plan Newlnitiatives --continued Education • Provided educational material and classes on high deductible health plan with health savings accounts • Provided education classes on Health Reimbursement Arrangements • Provided educational material and classes on diabetic resources • Developed new Guide to Wellness & Prevention • Providing Benefit Seminar Series • Provided Health Fair during Open Enrollment • Enhanced Wellness Ambassador awareness through conferences and "best of recognition • Provided enhanced opportunity for on-site health education classes • Conducted Dependent Audit Newlnitiatives --continued Collaboration • Participate on eValue8 Strategic Partnership through Virginia Business Coalition on Health for health plan/employer/provider collaboration • Enhanced collaboration with Occupational health • Enhanced collaboration with Optima Case Management Recognition • Recognized by American Heart Association as "Start! Fit-Friendly" company, listed in September 28, 2009 issue of Fortune magazine 3/16/2010 4 3/16/2010 Results /Projections 2009 Trend • Experienced a 6% increase in trend 2010 Plan Changes/Enrollment • Plan Changes -Added High Deductible Health Plan with a Health Savings Account; Eliminated Basic PPO • Contribution Strategy - No changes • Enrollment -HMO 13,577; PPO 79; Equity 210; POS 812 • Double EE/Retirees make up an additional 1001 receiving employer contribution • Employee/Retiree Only - 56.8%; Dependent Coverage 43.2% 2010 Projection . 7% Trend Next Steps April/May • GASB valuation completion • Reviewl5c quarter claims experience Development of 201 1 options • Contribution Strategy • Continue flat contribution rate (same amount for all tiers) • Provide increased contribution to dependent tiers • Provide contribution based upon a percentage of cost by employee and dependent tiers • Plan Design Changes • Impact to Health Fund and GASB liability June -Discussion and presentation of options August -Completion of claims audit December -Issuance of RFP for fully and self insured health plans io 3/16/2010