4.
4.
Presentation on the Employer Contribution
(subsidy) portion of the overall rate.
(Celestena Glover, Chief Financial Officer)
(Information/ Discussion)
HOW EMPLOYER
CONTRIBUTIONS WORK
Also Known as How Much Do I Get
ELEMENTS THAT MAKE UP
OVERALL RATES
Base Rates (Plan Design Cost)
Loaded Rates (Plan Design + Administrative Costs)
Plan Tiers
Employer Contribution Percentages (Subsidy)
Monthly Employer Contribution
March 23, 2017
2
BASE RATE
Base Rates
CDHP
HMO
INCLUDES:
Plan Design
Participant
$ 466.90
$718.25
Participant + Spouse
$ 930.20
$1,436.50
Participant + Child(ren)
$ 626.75
$1,051.96
Participant + Family
$1,089.22
$1,770.21
March 23, 2017
 Medical
 Prescription Drugs
 Dental
3
LOADED RATES
INCLUDES:
Loaded Rates
CDHP
HMO
Participant
$598.69
$764.03
Participant + Spouse
$1,078.66
$1,482.28
Participant + Child(ren)
$786.88
$1,097.74
Participant + Family
$1,266.01
$1,815.99
Life Insurance Premiums
HSA/HRA Contributions
PEBP Operating Costs
 Payroll
 Office Supplies
 Information Technology
Administrative Costs
 Fees Paid for Vendor Services
March 23, 2017
4
EMPLOYER CONTRIBUTION
÷
Total Cost
Number of
Employees & Retirees
March 23, 2017
÷
12 Months
=
Monthly
Contribution
5
EMPLOYER CONTRIBUTION
(CONT.)
Total Employee Cost $212 million
Average Monthly Contribution $699.25
Total Retiree Cost $22 million
Average Monthly Contribution $451.15
March 23, 2017
6
PLAN TIERS
Participant
Plan Rates
Participant +
Spouse
Participant +
Child(ren)
Participant +
Family
March 23, 2017
7
COST ALLOCATION
WHO PAYS WHAT PORTION?
March 23, 2017
CDHP
HMO
Active Primary
93%
78%
Active Dependent
73%
58%
Retiree Primary
64%
49%
Retiree Dependent
44%
29%
8
WHO PAYS WHAT PORTION
Participant & Spouse
Rate is $1,078.66
Employer Pays 93% of
Employees’ Portion
$556.78
March 23, 2017
Employer Pays 73% of
Spouses’ Portion
$350.38
Employee pays 7% for
himself and 27% for
Spouse
$41.91+ $129.59 = $171.50
This is an example of an employee on the CDHP
9
EMPLOYEE RATE TABLE
CDHP
Employee Only
Employee + Spouse
Employee + Children
Employee + Family
March 23, 2017
Rate
Base Subsidy
Participant
Premium
598.69
556.78
41.91
1,078.66
907.16
171.50
786.88
694.16
92.72
1,266.01
1,043.92
222.09
10
EMPLOYEE RATE TABLE
(CONT.)
HMO
Employee Only
March 23, 2017
Rate
Base Subsidy
Participant
Premium
764.03
595.94
168.09
Employee + Spouse
1,482.28
1,012.53
469.75
Employee + Children
1,097.74
789.50
308.24
Employee + Family
1,815.99
1,206.08
609.91
11
WHO PAYS WHAT PORTION
Retiree
Participant & Spouse
Rate is $1,060.75
Employer Pays 64% of
Retirees’ Portion
Employer Pays 44% of
Spouses’ Portion
$371.70
$211.19
Retiree pays 36% for
himself and 56% for
Spouse
$209.08+ $268.78 = $477.86
This is an example of retiree with 15 years of service on the CDHP
March 23, 2017
12
RETIREE RATE TABLE
CDHP
Retiree Only
Retiree + Spouse
Retiree + Children
Retiree + Family
Rate
Base Subsidy
Participant
Premium
580.78
371.70
209.08
1,060.75
582.89
477.86
765.62
453.03
312.59
1,248.10
665.32
582.78
Base Subsidy is for Retiree with 15 years of Service
March 23, 2017
13
RETIREE FINAL TABLE
(CONT.)
HMO
Retiree Only
Rate
Base Subsidy
Participant
Premium
746.12
365.60
380.52
Retiree + Spouse
1,464.37
573.89
890.48
Retiree + Children
1,079.83
462.37
617.46
Retiree + Family
1,798.08
670.67
1,127.41
Base Subsidy is for Retiree with 15 years of Service
March 23, 2017
14
YEARS OF SERVICE ADJUSTMENTS
YOS
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
March 23, 2017
State/Non-State
-322.72
-290.45
-258.18
-225.91
-193.63
-161.36
-129.09
-96.82
-64.54
-32.27
+32.27
+64.54
+96.82
+129.09
+161.36
Example
Retiree on the CDHP with 20 Years of Service
Increase Base Subsidy
$371.70 + $161.36 = $533.06
Reduce Participant Premium by the same
amount
$209.08 - $161.36 = $47.72
15
March 23, 2017
16