Presentation to the Special Administrative Board

Edmond T. Heatley, Ed.D., Chief Human Resources Officer & USI Midwest August 11, 2015

2016 Benefits Renewal

Medical and Pharmacy: Did not have rate guarantees for the January 1, 2016 Renewal

Dental: Rate guarantee cap of 8% for January 1, 2016 renewal.

Vision, Basic Life/AD&D, Voluntary Life, Short Term Disability and Long Term Disability: In the 3rd year of a 3 year rate guarantee that was effective January 1, 2014.

Update on the District’s Wellness Program

Next Steps

2016 Benefits Renewal Update

The Committee is comprised of representatives from Local 420 Active and Retiree groups; Local 148; Local 44; the PSRSSTL Retirement office, Finance and Human Resources. The Committee met on July 15, 2015.

Recommendations

1. Medical - There is a 4% decrease in the rates for 2016. There is a rate cap of 12.9% for the January 1, 2017 renewal. The Affordable Care Act fees are included. (Coventry Health Care)

2. Pharmacy - There is an estimated increase of 22.9% due to an escalation in Specialty Utilization and Costs and overall rise in prescription utilization (Express Scripts).

3. Dental – There is an increase is 3.5% (Delta Dental of Missouri) This rate was negotiated down from the initial 8% renewal cap, saving the District approximately $72,000.

For the January 1, 2017, the rate cap will be based on the claims loss ratio.

Renewal Recommendations of Joint Benefits Committee (JBC)

Renew All current vendors. All medical and pharmacy copays continue to count towards the OOP Maximum.

Coverage Carrier Current Proposed % Change Current Proposed % Change Current Proposed % Change

Medical Coventry $23,723,916 $22,774,896 -4.0% $3,019,151 $2,898,532 -4.0% $20,704,765 $19,876,365 -4.0%

Pharmacy Express Scripts $8,474,000 $10,418,247 22.9% $885,136 $1,088,257 22.9% $7,588,863 $9,329,990 22.9%

Wellness Coventry Included above Included above 0.0% Included above Included above 0.0% Included above Included above 0.0%

Dental Delta of MO $1,601,295 $1,657,332 3.5% $493,784 $511,079 3.5% $1,107,511 $1,146,254 3.5%

Vision VBA $113,857 $113,857 0.0% $48,468 $48,468 0.0% $65,389 $65,389 0.0%

Basic Life and AD&D CIGNA $288,561 $288,561 0.0% $0 $0 0.0% $288,561 $288,561 0.0%

Voluntary EE & Dep Life CIGNA $236,749 $236,749 0.0% $236,749 $236,749 0.0% $0 $0 0.0%

Short Term Disability CIGNA $673,646 $673,646 0.0% $0 $0 0.0% $673,646 $673,646 0.0%

Long Term Disability CIGNA $546,343 $546,343 0.0% $0 $0 0.0% $546,343 $546,343 0.0%

EAP Coventry / MH Net $1,413 $1,413 0.0% $0 $0 0.0% $1,413 $1,413 0.0%

Total Premium $35,659,779 $36,711,044 $4,683,288 $4,783,084 $30,976,492 $31,927,961

Total Savings/ Cost $1,051,265 $99,796 $951,469

Percent of Change 2.9% 2.1% 3.1%

TOTAL Estimated Annual Premium Employee Responsibility District Responsibility

District Responsibility Renewal Scenario

District Responsibility 2014 vs. 2016 - All Coverages2010 2011 2012 2013 2014 2015 2016

District Responsibility $28,509,576 $27,822,986 $27,249,754 $28,260,446 $27,583,817 $30,799,608 $31,927,961

Active Employee Headcount 3,751 3,639 3,227 3,393 3,602 3,618 3,641

Per Employee Per Month (pepm) $633.38 $637.15 $703.69 $694.09 $638.16 $709.41 $730.75

% Change From Prior Year 0.6% 10.4% -1.4% -8.1% 11.2% 3.0%

District Responsibility Per Employee Per Month 2010 to 2016

SLPS Wellness Program with Coventry Health Care

• Health Risk Assessments will be held in August 2015.

• Walking Program: Plan to launch in late October 2015 with a hiking theme.

• The District is participating in the American Diabetes Association – Step Out Walk on October 10, 2015.

• 2015 Applications have been submitted as a healthy workplace to:American Heart Association for the Fit Friendly AwardBusiness Health Coalition for the Business Health Culture Award

The District was awarded Gold and Platinum American Heart Association Fit Friendly Awards

SLPS Wellness Program Update

• SAB Consideration of Recommendations

• Respectfully request approval of the 2016 Benefit Plans at this meeting so that the employee communication and enrollment process can begin

Next Steps

Questions?