Benefits Office March 2007 Benefit Re-enrollment Project October 2006 - February 2007

Benefits Office March 2007Benefits Office March 2007

Benefit Re-enrollment Benefit Re-enrollment ProjectProject

October 2006 - February 2007October 2006 - February 2007


Benefits Office Mission Benefits Office Mission StatementStatement To support the strategic mission To support the strategic mission

of the Peralta Community of the Peralta Community College District by College District by exercising fiduciary responsibilityexercising fiduciary responsibility efficiently maintenance and efficiently maintenance and

administer programs for administer programs for employees retirees and employees retirees and dependents dependents

maintaining compliance with maintaining compliance with prevailing benefits regulationsprevailing benefits regulations


What we are our outreach What we are our outreach efforts? efforts?

Health & Wellness WeekHealth & Wellness Week March 26 – 29March 26 – 29 Campus VisitsCampus Visits Wellness talksWellness talks Promotion of other fringe benefitsPromotion of other fringe benefits

Theme park discounts, Costco Theme park discounts, Costco memberships, fitness membershipsmemberships, fitness memberships

More to comeMore to come


More HighlightsMore Highlights

Customer Service Satisfaction Survey Customer Service Satisfaction Survey Cash-in-lieu of benefits implementationCash-in-lieu of benefits implementation Website development Website development Professional Development Day Professional Development Day

participation participation Consolidated 5 forms into 1 Universal Consolidated 5 forms into 1 Universal

Enrollment FormEnrollment Form Pending improvement of paycheck as a Pending improvement of paycheck as a

tool communicate tool communicate total compensation total compensation Add Employer PERS/STRS retirement Add Employer PERS/STRS retirement

contributioncontribution Describe employer contributions Describe employer contributions

ex: “Kaiser + 1 dep”; not just “Kaiser “ex: “Kaiser + 1 dep”; not just “Kaiser “


IssueIssue1.1. Ensure accurate Ensure accurate

population2.2. Manage revenue Manage revenue

offsetsoffsets

3.3. Work with vendors to Work with vendors to timely process billing.timely process billing.

4.4. Support healthy Support healthy lifestyles-regular lifestyles-regular wellness eventswellness events

ActionAction1.1. MandatoryMandatory re-enrollment re-enrollment2.2. Apply for subsidies & Apply for subsidies &

manage our offsetting manage our offsetting revenuesrevenues Medicare DMedicare D MedcoMedco Cobra Cobra Stop loss Stop loss Surviving spouse Surviving spouse

insurance paymentsinsurance payments

3.3. Increase electronic Increase electronic exchange of informationexchange of information

4.4. Offer and promote Offer and promote wellness eventswellness events

Health care costs are expected to rise 15% - Health care costs are expected to rise 15% -

Our 2006-7 budget for benefits: $14,000,000Our 2006-7 budget for benefits: $14,000,000

How do we mitigate escalating costs?How do we mitigate escalating costs?


Ensure accurate population Ensure accurate population Mandatory Re-enrollment Project Mandatory Re-enrollment Project overviewoverview Objectives Objectives Review of Census DataReview of Census Data Outcomes from Re-enrollmentOutcomes from Re-enrollment


Re-enrollment Objectives Re-enrollment Objectives

Cost control effort-assigned by the Finance Cost control effort-assigned by the Finance Committee of the Trustee Board to the Committee of the Trustee Board to the Benefits Office Benefits Office

Compounded by the need to integrate new Compounded by the need to integrate new technology with vendor recordstechnology with vendor records

Identify ineligible employees & dependentsIdentify ineligible employees & dependents Identify workflow processes Identify workflow processes identify areas where we can improve the identify areas where we can improve the

documentation of our business practices documentation of our business practices


Make it Happen!Make it Happen!

How do you eat an elephant?How do you eat an elephant?


ApproachApproach

Forms went out 1584Forms went out 1584 Forms returned 1505Forms returned 1505

95% return rate95% return rate We were prepared to rightfully de-enroll the non-We were prepared to rightfully de-enroll the non-

respondents and offer them COBRA.respondents and offer them COBRA. Under COBRA, former insureds are entitled to Under COBRA, former insureds are entitled to

retain coverage at their cost.retain coverage at their cost. The Benefits Office widely communicated that The Benefits Office widely communicated that

fact throughout the planning stages during the fact throughout the planning stages during the Benefits Fringe Committee MeetingsBenefits Fringe Committee Meetings

Wide communicationWide communication Campus visitsCampus visits Certified mailCertified mail Cooperation of unionsCooperation of unions Peralta Retirees OrganizationPeralta Retirees Organization Use of telephone technologyUse of telephone technology


As a result of this effort, PCCD will save $916,120.16

over the next year!

How did we do it?

CostsStaff 20,000.00$

Duplicating 1,500.00$ Mailings 1,000.00$

22,500.00$ Savings monthly fixed variable

Kaiser 705.00$ 36 25,380.00$ Coresource-Average Claims Cost 641.00$ 37 23,717.00$

CoreSource Claims Admin 87.34$ 37 3,231.58$ Dental Claims Costs 125.00$ 85 10,625.00$

Dental Claims Admin 8.66$ 85 736.10$ Medicare 94.00$ 73 6,862.00$

Total/month 70,551.68$ Annual Cost Savings 846,620.16$

risk exposure-coresource 185,000,000.00$

Annual Cost Savings 846,620.16$ Project Costs 22,500.00$ projected net

premium/claims savings 824,120.16$ Medco savings 92,000.00$

TOTAL 916,120.16$


Census changesCensus changes

Enrollment Census 10/1/2006 1/31/2007 + or - changeMedical

Kaiseremployees & retirees 758 755 3 0%

dependents 700 686 14 2%total covered lives 1458 1441 17 1%

CoreSourceemployees 843 811 32 4%

dependents 785 761 24 3%total covered lives 1628 1572 56 4%

medical employees +

dependents 3086 3013 73 2%

Dental Delta

employees 854 768 86 11%dependents 854 807 47 6%

total 1708 1575 133 8%

Pacific Union Dental (eff 1/06) employees 16 17 -1 -6%

dependents 10 6 4 67%total 26 23 3 13%

dental employees + dependents 1734 1598 136 8%

significant drop recognized because we used staff to review

and check our invoices for accuracy on a quarterly basis-

vendor did not track depdendents until 2007

movement between groups-we identified suriving spouses who

are expected to pay

new plan effective Jan 2006; popular amoung adjunct

population

measurable drop because we did not perform this exercise at the

initial conversion from Blue Cross to CoreSource.


Next Steps & Next Steps & RecommendationsRecommendations With our PCCD staffing ratio of 1:3000, we are encouraging the With our PCCD staffing ratio of 1:3000, we are encouraging the

use of vendors and broker services to support on-going customer use of vendors and broker services to support on-going customer service efforts.service efforts.

Consider Consider dependent re-enrollmentdependent re-enrollment verification verification marriage certificates marriage certificates domestic partner verifications or domestic partner verifications or tax formstax forms

Board Policy (3.86) states that Board Policy (3.86) states that If the District suffers any loss If the District suffers any loss because of a false statement contained in any benefit because of a false statement contained in any benefit enrollment/change form or failure to notify the District of the enrollment/change form or failure to notify the District of the termination or change of any dependent status, PCCD may bring termination or change of any dependent status, PCCD may bring civil action to recover their losses including reasonable attorney civil action to recover their losses including reasonable attorney fees. This language will be incorporated into upcoming form fees. This language will be incorporated into upcoming form revisions.revisions.

Consider full execution of PPS for benefits administration (future Consider full execution of PPS for benefits administration (future board action)board action)

Project Cost $64,000Project Cost $64,000 Implementation January 2008Implementation January 2008

Broker recommends more training of our managers –Broker recommends more training of our managers –communicate to them our compliance requirements and need of communicate to them our compliance requirements and need of timely processing of personnel actionstimely processing of personnel actions

Documents

Benefits Office March 2007 Benefit Re-enrollment Project October 2006 - February 2007